New Federal Requirement: Starting January 1, 2024, most business entities in the US will need to report Beneficial Ownership Information.


Starting an online business

Asked by: Chris  — 9 November, 2012

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: admin  — 9 November, 2012

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 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.

Ask Incorporation Question
Please enter your full name
Please enter your email address
Please select your phone number
Please select
Please enter text message
Begin Web-Stat code v 6.0