Legal Question in Business Law in Missouri

Re: Internet subscription based site

Whatever you do, don't listen to those guys who claim that incorporating in "tax free Nevada" is the answer to your problems. It isn't.

In Missouri it will cost you about $300 - $500 in most law offices to open up either an LLC or a corporation. In my view an LLC is better because you get the same liability benefits as a corporation, but you also get the ability to run it (and have it taxed) as a sole proprietorship. In other words, you can use your own SSN and not a special tax ID if you use an LLC form. If you incorporate, you probably need a tax ID number.

Your bank can be anywhere, but if you operate the business out of Missouri you'll pay taxes here on both the income derived from the business as well as any supplies you use, etc. The Supreme Court only recently upheld use taxes, and you may have a local use tax issue too, depending on what it is you're really selling through your business. It is not a good idea to attempt to avoid taxes by incorporating in another state because you'll still have to register to do business here, and that's also going to cost you.

Whatever you do, make sure you buy good business insurance because if you set up Sweet Mary Jane with Ted Bundy, you could be looking at a lawsuit down the road that would destroy you.

Good luck,