Legal Question in Business Law in Delaware

Incorporating my Internet Business

My company provides domain web hosting services to people/businesses all over the world. I currently reside in Richmond, Virginia but have no plans on remaining in this state.

I am the only owner/employee of my company. I have no plans of hiring any permenant employees. Should I desire anytype of help it would--name removed--in the form of a subcontractor.

I would like to receive advice/comments on the best way to incorporate my company. Should it--name removed--an S Corporation, Limited Liability, or regular Corporation.

In addition to that advice I would also like some advice as to where to incorporate my business. Since I have no plans of remaining in Virginia, and my services are sold to individuals/businesses all over the world, would it benefit me to incorporate in Deleware?

When I incorporate do I still need to obtain a business license to do business in whatever state I am in or will my Incorporation status handle that? If I do need to obtain a business license for the state I am in, how am I permitted to do business all over the world?

Thank you for your time.


Asked on 5/13/99, 11:20 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Incorporating my Internet Business

These questions cannot be answered other than in general terms without your retaining counsel and thoroughly discussing your business and your plans. This is not legal advice.

S Corp., C Corp., and LLC are all taxed differently. You need to consult with a tax professional to decide which is best.

Where to incorporate? Generally where you and your fixed assets are going to be physically located. There is probably no advantage to DE unless you are going to be physically there, or unless you are going public.

Business licenses are generally a matter of state or local law, but you probably need one, corp. or not, wherever you physically are. Most other states do not tax business licenses like VA does on a gross receipts basis.

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Answered on 5/20/99, 10:44 pm


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