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Starting an online business

Asked by: Chris - 9 November, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/default.png-f1597c1da25f30f8c1a941405e8391c8 Myself and a friend have designed a website that will provide a service to our customers. There will be no tangible product being sold, but we will be charging for the use of the website. We are planning on creating an LLC.

What state should we incorporate in?
Do we need to collect sales tax from people in different states for their membership?
Should we use an online service to help us incorporate?

I have many questions, but I guess this is the best place to start. Thanks in advance for the help!
Answered by: Robert Kowalski - 10 November, 2012
https://d25eic0jctudgb.cloudfront.net/images/site/avatars/35.jpg-687fc92d5f6c5febcbdccb6895b08b8c Dear Chris,

Since your business would not sell tangible goods you would not need to collect sales tax from your clients. As far as state of formation goes, I would recommend you to read our article dealing exactly with this topic - how to choose the state of registration for various types of business: Choosing Where To Incorporate.

Finally, there are many services on the Internet that offer help registering your business. Since we offer that service ourselves through our website MyUSACorporation.com I would abstain from giving any opinion on the level of service provided by our competitors, and instead would like to invite you to consider using our service.

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