Legal Question in Entertainment Law in California
Internet Adult Entertainment Corp
I am wanting to start an internet adult intertainment site. What would be the best and safest state to incorporate in?
3 Answers from Attorneys
Re: Internet Adult Entertainment Corp
The best state to incorporate (or develop a limited liability company) is the state that you are operating from. It is actually a myth that certain states are better (i.e., Nevada) if you are operating out of California because you will still be subject to CA taxes. Where you incorporate does not matter with regards to the adult entertainment content because your concerns will be with federal law (cover all states), such as complying with COPPA (dealing with minors) and obscenity laws.
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Re: Internet Adult Entertainment Corp
Mr. Jefferson is correct for a traditional company, but taxing of an Internet company can be very complex and allow you to live in CA and avoid most or all of CA taxes. Feel free to contact me directly; we have an attorney in CA and many other states and countries.
Re: Internet Adult Entertainment Corp
Your best bet is to incorporate in the state where your company will actually "do" its work.
I must respectfully disagree with Mr. Nance's suggestion. If you're shooting photos, videos, etc, in CA, or if your web designers, writers, etc, are located in CA, then you'll likely be considered to be "doing business" in CA.. and subject to its tax laws.
There's no substitute for a direct consultation with an attorney experienced in this area. You'll also want to work closely with an accountant in reviewing your options.
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