I’m moving from London to New York City. There’s one big reason – building the Arcjet go-to-market operation – and plenty of smaller ones (stronger economy, more energy, entrepreneur friendly), but I’ll save those for a future post.
In this post, I’m going to talk about the logistics behind the move. What are all the things you need to think about when moving from the UK to the US?
Which US visa?
Getting a US visa might be the hardest step for some. The process is expensive and time-consuming, but largely comes down to building up the right evidence to show why the US should admit you.
If you are a startup founder and have worked for the UK company for at least a year (sub or topco, it doesn’t make much difference) then you have the option to get an L-1 (intracompany transfer) or O-1 (individuals with extraordinary ability). The main difference is that the L-1 comes with work authorization for any dependents also entering on the visa, which the O-1 doesn’t.
I’ve heard a few horror stories about the US visa application process, but I have now gone through it three times without issues. I had an L-1 visa in 2017 for my old company, have been traveling on an O-1 visa for the last couple of years, and am now on an L-1 visa again. Each time, approval came within two weeks (using premium processing), the London embassy scheduled my interview within another two weeks, and I had my documents back a week later.
It’s more difficult than you might expect to find a good lawyer, so getting trusted referrals is important. I only found someone I wanted to work with again (Reinhorn Law) on the latest application!
Opening a US bank account from abroad
Opening a US bank account is a classic chicken-and-egg problem.
For most US banks you need a US social security number, a physical US address, and be an official resident. To apply for an SSN you also need a US mailing address (virtual or PO boxes get rejected) and to have been in the US at least 10 days to allow immigration records to sync. But to get an address you need to be able to pay rent from a US bank account, which you can’t get without a US address…
Having no credit history can also be a blocker. It can take up to a year before your credit history has enough data to generate a useful score.
Another option is to use the local US bank account details from someone like Revolut. However, even though Revolut operates in the US you have to close your UK account then open a new US account. There’s no option to transfer – only close and then reopen your account.
HSBC turned out to be the solution.
I have been impressed with HSBC’s “New to US” service where they were able to open a US account based on my UK credit history within a week. Their service links your accounts globally so you can see everything all from one app, has decent FX rates for instant transfers, 24/7 support (phone, chat, iMessage), offers US credit cards I can apply for using my UK credit history, and allows me to maintain a UK account whilst resident in the US (I have to close my Monzo UK account). If you already have a UK HSBC Premier account then it’s even easier.
Amex can also port your account over to the US whilst maintaining credit history and reward points, but that’s a credit card not a bank.
US / UK tax advice
As soon as you become a tax resident in the US you have to pay tax on your worldwide income. This means tracking time spent (the US looks back over the last 3 years) to sync up the relocation with ending your UK tax residency.
Unlike the UK, the US tax year follows the calendar year. Some UK tax efficient vehicles like ISAs are not recognized as such in the US. You have to report financial accounts if your balance exceeds a certain aggregate limit. Assets not held in USD have to be valued for capital gains tax. It can quickly become complex.
The UK and US have a tax treaty to avoid unfair situations like double taxation, but the optimum situation is to arrive in the US as a non-resident alien for tax purposes. You then have until the new tax year starts to liquidate UK assets in the most tax efficient manner.
Ending UK tax residency is easy, but you have to be careful if you come back. You can visit for up to 90 days per year, but can’t work for more than 30 of those days. And if you come back within 5 years the UK will consider you temporarily non-resident and tax you on certain past income or gains.
Getting expert tax advice before moving is essential. It’s all too easy to make a mistake and have to pay a lot of tax (or not enough, and risk fines). I worked with Andersen to make sure I was doing everything right.
US cell number
For the past few years, I’ve used Google Fi through Google Workspace whenever I travel to the US. Instead of data roaming on my UK provider, I just switch to Google when in the US.
If you want to keep your UK number the main problem will be cell provider limitations on how many days you can roam for. This tends to be 2-3 months before you risk disconnection, depending on the provider.
I have transferred my UK number to a VOIP provider so I can continue to receive texts and calls. I can switch iMessage and WhatsApp to my US number, which you can do without losing all your messages, contacts, and group chats.
If I didn’t already have Google Fi then HSBC offers a free data SIM for 30 days once you arrive in the US.
Movers
It’s shocking how quickly stuff accumulates. I’m aiming to take no more than two boxes plus a single checked bag for the flight.
Over the past few months I’ve gradually been donating things I no longer need and have arranged for movers (Bishop’s Move) to come and pack everything I want to keep into storage.
Online accounts
Most services don’t care where you live. Relocation usually just means updating billing details with a new address and credit card. You can use Amazon US with your Amazon UK details. Apple supports changing countries, although some items might not be available. I don’t have many subscriptions.
Any remaining direct debits will be cancelled when I close my Monzo bank account, but these tend to be for UK specific things like utilities.
Driver’s license
Although I can use my UK driver’s license in the US, once I become a New York State resident it only remains valid for 30 days. This will mean taking tests to get a driver’s license – there’s no ability to transfer my UK license. I look forward to visiting the DMV.
Conclusion
The first year is going to be a fun experiment. NYC feels like a natural landing point coming from London, but there is also a real draw to the San Francisco Bay Area (I’ll re-evaluate in a year). There’s real energy again in the US tech startup community, which will be a refreshing change from the UK.
Exciting times!