Legal Question in Business Law in Georgia

I am in the process of starting a new watersports sales and rental business based online (I will not have a physical office in my territory). I currently live in the State of GA and will be running my office out of my home located in GA, But my sales territory will be only the state of AL.

Should i start my llc in the state of ga, where i have a physical address?

or should i start my llc in the state of AL. Can i do this without a AL physical address?

If all sales are from customers in AL or online do i pay taxes to AL or GA?

Please help as I have hit a wall in forming my business

Thank you for any information or resources you can provide!


Asked on 1/25/14, 3:11 pm

2 Answers from Attorneys

Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Most small businesses fail. One of the biggest reasons for failure is what you're doing - trying to start a business without both a CPA and a lawyer. You need both.

First of all, an LLC may be a good - or very bad form for your business. Discuss the alternatives with your lawyer for the legal ramifications and with your CPA for tax ones. Note that if you form a business in one state and work in another state you will need that corporation or business to be registered there AND here.

As for taxes you need to discuss that with a CPA. Depending on details you may owe taxes in both states.

Some people will say "I can't afford a CPA and lawyer." If you can't, you are way too undercapitalized to start a business, and your missteps will cost you more than the fees you would have paid.

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Answered on 1/25/14, 3:25 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

I agree wholeheartedly with Mr. Ashman. That being said, I will try and give you some specific guidance:

Should i start my llc in the state of ga, where i have a physical address? -- Most likely it will make sense to form it here, but register in Alabama as a foreign LLC.

or should i start my llc in the state of AL. Can i do this without a AL physical address? -- You will need a registered agent and address in Alabama to form the company there or to register as a foreign entity. There are companies that do just this for a fee.

If all sales are from customers in AL or online do i pay taxes to AL or GA? -- That can be a complicated question, but at the very least you will need somewhere verse in the tax laws of Alabama to provide assistance.

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Answered on 1/27/14, 10:11 am


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