If you operate a “virtual business” as a DBA in your home state, do you have to register in other states if you get customers out of state?

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If you operate a “virtual business” as a DBA in your home state, do you have to register in other states if you get customers out of state?

Asked on March 4, 2012 under Business Law, Virginia

Answers:

Ronald Cappuccio / Ronald J. Cappuccio, J.D., LL.M.(Tax)

Answered 9 years ago | Contributor

First, you should seriously consider having your tax and business lawyer establish a Limited Liabilty Company for your business. This will give you a layer of protection for your personal assets. Secondly, if you have no employees, offices or locations, and do not make deliveries (other than by mail or UPS/FedeX) into a state, you have a good argument that you are not doing business in that State. Be aware that most States try to force businesses to collect and pay taxes. The topic is "nexus". Please, contact a tax lawyer expert in this field.

I hope this helps!

Ron Cappuccio

www.TaxEsq.com

Cedulie Laumann / Arden Law Firm

Answered 9 years ago | Contributor

Possibly.     Unfortunately an online post cannot adequately analyze the facts necessary to answer your question and any online business is strongly encouraged to seek legal counsel to answer questions like this.  Depending on the nature of the business transaction(s), what advertising goes out to out-of-state customers and what your business does in other states you may need to register in those jurisdictions.  


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