Virtual Consulting Business: Question about State of Incorporation?
by RS, Window Shopper
- Created: August 20, 2009, 4:32 pm
Hello, I'm seeking advice on starting an online services business.
Question: What state should I incorporate my virtual consulting business (no brick & mortar office) in?
Background of company: I am looking to establish an LLC for a virtual consulting business for academic admissions consultancy. All communications with clients will be online or over the phone.
The four founding members of the LLC are based in MA for the next few months, but will then move to different states. I'd like to open a bank account for the LLC in MA, and have a MA address for receiving any hard mail. I anticipate that clients will be from around the country and world. We plan to engage consultants as Independent Contractors around the country to work with clients (again, through online/telephone services).
Issue: If I register my virtual company as an LLC in Del. due to lower initial filing fees ($90)/annual fees ($250), will I have to file as a foreign entity ($500 initial and annual fees) in MA? Will I be considered to be 'transacting business' in MA if the founding members are currently located in the state, the bank account will be in the state, and if we retain a mailing address in the state?
Thank you for your help!
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