Foreign Qualification in Every State?

[IceDog]

Hello,

I'm starting up an LLC soon; and as I discovered the ridiculous $800 fee at the Franchise Tax Board in California, I started looking at other states. My business will sell advertising space on a website and other places which I rather not share. (No offense)

I just have two questions:

1. Since my business will be selling advertising space to various companies, I would need to be qualified to do business in that state, prior to the transaction. Assuming, I do business with multiple companies in various states, I would need to fill out the necessary qualification forms and pay the state's fees for each state that the company is located. Am I right so far?
   
2. If this is true, does that mean any online store must be qualified to do business in the 49 foreign states? I just don't see how this is feasible, considering all the paperwork and fees?

I appreciate your responses.

Thanks,
Nick

[StealYourDreams]

I just have two questions:
[LIST=1][*]Since my business will be selling advertising space to various companies, I would need to be qualified to do business in that state, prior to the transaction. Assuming, I do business with multiple companies in various states, I would need to fill out the necessary qualification forms and pay the state's fees for each state that the company is located. Am I right so far?

No, just California.

[byzantium]

No, just California.

I live in California too, and the laws are extremely draconian. If you were to set up a Nevada LLC, but live in CA, you have to register that NV LLC in CA and pay CA taxes. The state runs periodic tax raids and hauls off those who don't. The laws are so bad that I'm seriously considering a physical move to Reno. The CA lawmakers are hostile to business in general, which is why even Silicon Valley companies usually do most of their hiring elsewhere and just have their R&D team in Sunnyvale.

[IceDog]

Byzantium, I am thinking about a Nevada LLC. I thought about that problem as well, so I thought about flying out to Las Vegas for a day and getting a mail box at Mailboxes Etc. These boxes are different from regular postal boxes because the boxes are real street addresses followed by 'Suite #'.

With that as the business address and a registered agent service in Nevada, I can't imagine how CA will know that I'm living here.

Your thoughts?

[byzantium]

Byzantium, I am thinking about a Nevada LLC. I thought about that problem as well, so I thought about flying out to Las Vegas for a day and getting a mail box at Mailboxes Etc. These boxes are different from regular postal boxes because the boxes are real street addresses followed by 'Suite #'.

With that as the business address and a registered agent service in Nevada, I can't imagine how CA will know that I'm living here.

Your thoughts?

The Postal Service instituted a new regulation last year that says that private mail boxes such as those at Mail Boxes etc must be identified by "PMB", not "suite" or simply "#". My guess is that the USPS was losing lots of mail drop business, so they decided to chop off the obvious advantage of private boxes. The only solution I can find is to have a friend who actually lives in Vegas use his/her name and address for the filing, and even then you'd have to have a Nevada bank account. California periodically does stings and searches and imprisons those found to have skirted the law. CA law says that if the LLC owner has a residence in the state that he must register the LLC and pay the taxes. That's why I'm moving. I discussed this with an incorporation expert, and she said that there was no way to get around it without directly breaking the law.