OT: doing web business across state boundaries?

Rails
1

Guys,

Sorry for the off-topic post, but I know this list is replete with
fellow
entrepreneurs.

I will soon be forming a corp or LLC to be the base for a new web
application.

I know there are laws that apply if your company does business in
multiple
states that say you have to register in that particular state to do said
business. Since my web application will have potential users in all 50
states (and the world at large), does this imply I have to actually
register
in each of the 50 to do business?

I’m certain this is a hurdle many of you have already crossed. I
appreciate
what insight you can provide.

Thanks!

Jake

2

On Mon, Aug 28, 2006, Jake C. wrote:

I know there are laws that apply if your company does business in multiple
states that say you have to register in that particular state to do said
business. Since my web application will have potential users in all 50
states (and the world at large), does this imply I have to actually register
in each of the 50 to do business?

I’m certain this is a hurdle many of you have already crossed. I appreciate
what insight you can provide.

The best advice that anyone can offer is to find a lawyer and an
accountant in your area and ask them. I’m sure others will have good
tips, but until you’ve talked to people in your area who do this for a
living, you won’t truly know what you need to do.

Good luck, and I know I’d be interested to hear what you find out :slight_smile:

Ben

3

+1 on the lawyer. If you’re going to incorporate even as an LLC, you’d
do
well to pay for some advice :slight_smile:

Good luck to you!

4

Jake C. wrote:

Since my web application will have potential users
in all 50 states (and the world at large), does this
imply I have to actually register in each of the 50 to
do business?

My understanding is that the requirement is generally based on physical
presence. If your business maintained offices or other facilities
(e.g.,
product distribution) in a state, then you’d definitely need to register
to
do business there. Easiest / cheapest way to proceed re: details is to
call
the Office of the State Controller in your state. The one here in TX is
very helpful.

hth,
Bill