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markzh
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Posts: 1
(6/11/01 1:49:36 pm)
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UK contractor working in USA (soon I hope)
Hi guys,
I am a UK based contractor working in London. While it might not be the best time to move to the USA right now it's something I hope to do when the downturn is over.
I have a copy of "The computer consultant's workbook" and was reading some of the "gotchas" which sounded familiar: When I moved from Australia to the UK I found that regardless of my credit history in Australia (which was OK) I couldn't qualify for any sort of credit (including services such as mobile phones) or even open a bank account before I had established a 3-year credit history in the UK. Fortunately I found a company to help me out (at a price) with a bank account & mobile. My question is am I likely to have a similar problem if i take a contract in the USA? If so is there anyone who can help me out?
Also other gotchas mentioned health insurance problems if you are independant but didn't really make it clear if it was impossible to get or just really expensive.
Any other gotchas I should be aware of?
Any help would be greatly appreciated.
Mark.
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Colin Davies
Registered User
Posts: 85
(6/11/01 2:27:19 pm)
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Re: UK contractor working in USA (soon I hope)
>I have a copy of "The computer consultant's workbook"<
Good! That's a good place to start. This board is the right place to visit, too.
>When I moved from Australia to the UK I found that regardless of my credit history in Australia (which was OK) I couldn't qualify for any sort of credit (including services such as mobile phones) or even open a bank account before I had established a 3-year credit history in the UK.
<
In general, getting credit in the US is easier (too easy for some!), but try to get letters from your current bankers, credit cards, etc., stating your credit history. If all you are asking is a statement of fact, they might oblige. Also, keep statements showing your payment history. If you have a major credit card, such as Visa, MasterCard, or AmeEx, you should keep it and just change your address when you get here. You can always get a new one later.
>Fortunately I found a company to help me out (at a price) with a bank account & mobile.<
Be wary of these kinds of companies over here - some of them are pure rip-offs.
>Also other gotchas mentioned health insurance problems if you are independant but didn't really make it clear if it was impossible to get or just really expensive.<
Depends on your health, age, etc., as well as which state you are in. Unless you have some serious health problem, you can get insurance and it will be expensive. Basically, they don't like to insure anyone who might actually need it.
>Any other gotchas I should be aware of?<
Bring with you any insurance policies that you have held in recent years, especially auto insurance. Auto insurance can be difficult to get with no history.
You didn't mention anything about which part of the country you are planning to go to, nor anything about your skills and experience. These matter in terms of finding work. You might want to consider hiring on in the UK with a consulting firm or agency that has branches here (I think Robert Half and Computer People might fit), which would enable you to get an internal transfer to the US.
I also suggest contacting your home country's embassies, both in London and Washington, DC, to ask them for advice.
If there are specific questions you need answered, feel free to email me at Colin_Davies@excite.com.
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David E 
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Posts: 292
(6/11/01 2:27:25 pm)
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Re: UK contractor working in USA (soon I hope)
or even open a bank account before I had established a 3-year credit history in the UK
As a Canadian I had no problem opening a banking account in the U.S. They required my Social Security Number, employer and U.S. address. Having no U.S. credit history caused a bit of a hitch in getting a car loan but the bank had it straightened out in a couple of weeks.
Couldn't get a Sears (big American retail store) credit card until we had lived here a year.
I didn't try to buy a mobile phone in the first few years so I don't know about that.
The possibility and cost of health insurance depends on your age and medical history.
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 Marvin C NiceGuy
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Posts: 128
(6/11/01 11:14:39 pm)
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Community Supporter
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I came over in 1981..
...oh, wait a minute, thats > 10 yrs ago (see other thread on 'cutting-off resume at 10 yrs) .
I responded to an ad from a Florida Utility, placed by a US Broker in 'Datalink' (does that still exist?) in 1981. Approx 30 Brits came over, about 1/2 stayed. Basically it was CTH, after all the Green Card stuff was done. Promised to take 12-18 months, actually took 4 1/2 years to get that - the agency had little incentive to go from Contract to Hire...
Anyway, my experience may be somewhat dated, but here goes.
>> that regardless of my credit history in Australia (which was OK) I couldn't qualify for any sort of credit (including services such as mobile phones) or even open a bank account before I had established a 3-year credit history in the UK. <<
I had somewhat of the same problem. Brought a 'letter of introduction' from my UK Bank Manager, who'd known me for 10 + years. US banker looked at it, said "that's nice" and insisted on US references before opening an account. Wanted big deposit to issue a secured credit card.
Suggestions:
As suggested - Get UK credit card (esp. an Amex). Then transfer to US address.
Get someone (in my case the importing broker) to vouch for you. My broker was helpful - they took me to the bank where they had their corporate account.
Get an International Driving Licence. Better than UK one (and issued for 1 yr automatically for a small amount). It has your photo on it (UK licences do not). Makes ID and check-cashing much easier.
Bring copies of utility statements, Auto Insurance renewals (esp No Claims Bonus).
I almost hate to bring-up the subject of visas etc. Its an emotive subject here. Are you planning on H1 / H1B / H2 etc ?
Don't underestimate the power of the INS and the complexity of the immigration Law. The INS makes the IRS look like positively friendly !
Best bet is inter-company transfer (L Visa I think), or get sponsored by someone. How about CAP Gemini - who acquired Ernst & Young Computer division recently ?.
Or scope-out Jobserve or Monster for US companies sponsoring people. It really helps to have a big Suger Daddy sometimes.
If you start to think permanent instead of temporary, talk to your own lawyer(s), and don't believe the company lawyers....
Anyway, any questions, my email addr is in my profile.
Good Luck - Immigrating over here was the BEST thing I've ever done. Not going back.. Most Americans don't know just how lucky they are to live here ....
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markzh
Registered User
Posts: 2
(6/12/01 9:35:44 am)
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Re: Thanks for the tips
Thanks for the tips.
Am thinking of L-1 (intra-company xfr) visa - won't be cheap but to get H1-B you need sponsorship (=permie) so probably best option.
Mark.
Edited by: markzh at: 6/12/01 9:46:02 am
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markzh
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Posts: 3
(6/12/01 9:44:50 am)
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Re: UK contractor working in USA (soon I hope)
> You didn't mention anything about which part of the country you are planning to go to, nor anything
> about your skills and experience
I specialise in Lotus Notes/Domino application development. Have been doing this for 6 years (way too long ).
Ideally I'd like to work in NYC.
As I understand things, you can incorporate in whatever state gives the best tax advantages. (Correct?)
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Jah Wren Ryel
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(6/12/01 10:08:10 am)
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Re: UK contractor working in USA (soon I hope)
As I understand things, you can incorporate in whatever state gives the best tax advantages.
No. It is rare that incorporating out of state gains you much, you usually have to file foreign corporation fees to work in another state. There are some benefits that the big boys like Sun, IBM, HP, etc are able to gain by incorporating in a specific state, but it is unlikely that us small fish would gain anything by doing so.
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David Cressey 
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Posts: 2253
(6/13/01 8:43:16 am)
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People who have made the transition
One of my long time friends and associates has worked in the US, is originally from the UK, and has spent quite some time doing contract work in Australia, among other places.
I wonder whether he would have any words of wisdom about working in the US?
One gotcha to watch out for, is that the amount of your tax money in the UK spent on your health care and your children's education may be larger than it is here.
So in comparing your finances in the UK and projected in the US, you have to factor in expenses that you will incur in the US. Otherwise the difference in the tax rates will make things look better than they really are.
Regards,
David Cressey
Not all those who wander are lost.
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Michael Reid
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Posts: 8
(6/13/01 10:11:01 pm)
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Re: People who have made the transition
There are many similarities between the UK and Canada so many of the differences with the US should be the same.
We in Canada are pretty used to our socialized (but subpar) health care but how expensive is good health coverage anyway ? Taxes can be a major bonus to working in the US though. In Canada every dollar you make over $40 K US get's taxed at about 48% (used to be 51-52%).
Other factors to watch out for include higher transportation costs; in most American cities without subways you NEED a car. Rental/real-estate costs may be higher also.
I also believe that it's easier to maintain independent contractor status here in Canada than in the US. I've often heard rumblings about Revenue Canada making this harder but so far it's reasonably easy.
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David Cressey
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Posts: 2268
(6/13/01 11:34:47 pm)
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Re: People who have made the transition
Health coverage is getting more expensive by the year in the US. For many contractors, it's a very significant expense.
Insurers try to segment the market into a high risk and low risk pools. Older people are at higher risk. So it just gets worse the older you get. There are some very easy ways the industry can get around age discrimination laws.
I've heard some Canadians and foreigners residing in Canada describe the Canadian system in glowing terms, while others rate it sub-par as you did. It seems to me that health care is an economic good, and there's no legislation that can change that fact. If you don't ration it by price, it gets rationed some other way.
Most of the "other ways" found in socialized health care systems result in sub par service.
Regards,
David Cressey
Not all those who wander are lost.
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David E
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Posts: 294
(6/14/01 8:25:53 am)
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What's an emergency? What's essential?
I've heard some Canadians and foreigners residing in Canada describe the Canadian system in glowing terms, while others rate it sub-par as you did.
A couple of years ago my wife's uncle had a mild heart attack in Montreal during the infamous nurse's strike. The hard part was convincing him to see his doctor, but when he did he was in the hospital getting tests, angioplasty, medication -- the whole nine yards. Nothing sub-par about that.
However, if you want elective surgery or suffer a non life threatening injury you may have to wait much longer than you want to before being taken care of. So yes, some services are, in effect, rationed. But you can get excellent, quick treatment for serious medical problems there without having a financial crisis on top of your medical one.
My wife and I will both have turned 50 by the end of the year. Already we find the health insurance (here, in the U.S.) expensive. Canada's system is far from perfect but the U.S. has to do something soon. Otherwise, only the young and genetically impeccable will be able to remain in the middle class.
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Michael Reid
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Posts: 12
(6/14/01 1:45:36 pm)
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Re: People who have made the transition
Canadian Health Care is great in that we don't have to worry about most illnesses financially. Rich or poor, you are covered, although there are some things that are extra billed such as $35-50 for an ambulance ride. Welfare programs may pick up some of those items though.
It's subpar (but perhaps no more than in many HMOs?) in that doctors often rush through their patients to bill the provincial health ministries as much as possible in total. It's fixed price piece work so it's rushed.
At least if you have the money you can pay for quick MRIs and such in the US. I've seen TV ads for MRIs in NY that are directed at Canadians.
Budget cutbacks also mean hospitals are understaffed and expensive procedures like MRIs have long waiting lists. These issues are the same anywhere medicine is socialized.
So what's the average contractor actually paying for health insurance in the US ? $ 5 - 10 K a year ? Would be well worth it if you can save $ 20 K a year in taxes...
Edited by: Michael Reid at: 6/14/01 1:48:17 pm
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Jeremy Singer
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Posts: 257
(6/16/01 11:07:37 am)
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Credit is a funny thing when you are from abroad
My parents live permanently abroad, but have a bank account, and a banker here. They are affluent and retired.
Despite having Visa accounts and the American bank account with an American address, it was necessary for me to initiate a sprint account so they could get the cell phone while they were here!
They have way more money than I do, but no credit history in the USA (they moved many years ago).
After they left, I was amused to receive a letter from Filene's rejecting them for a store credit card for this reason. I think they must have applied because there was some sort of promotion that got them a break buying something if they made the application...
This is one more example of what happens when everything gets automated; anything that falls outside the norm of the main commercial population becomes marginalized. It seems to work the same way with resumes.
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