Legal Question in Business Law in New York

Re: Business License/Partnership Agmt.

Your internet business is run from a physical location (a "principal place of business"), correct? The stuff you sell or the services you provide originate from your business which is located in a physical place, presumably, in NY. If NY is where you are physically located, NY is where you need to register your business (either as a NY entity or as a foreign entity doing business in NY). If your partner is located in another state, you probably must also register the business there. The global nature of a website can be confusing, but websites are nothing more (or less) than advertising.

Depending on what type of business yours is, you will want to register it as either a corporation or a limited liability company (LLC) with the secretary of state, rather than as a DBA with the county in which you do business. It's way easier to get foreign entity status to do business in other states as an LLC or a corp.

How business income and expenses are handled on a tax return is a question for your tax advisor who is familiar with your specific situation.

If I can be of any further help, please feel free to contact me offline.

Best wishes,

Nancy Delain

THE INFORMATION PRESENTED HERE IS GENERAL IN NATURE AND IS NOT INTENDED, NOR SHOULD IT BE CONSTRUED, AS LEGAL ADVICE. FOR SPECIFIC ADVICE ABOUT YOUR PARTICULAR SITUATION, CONSULT YOUR ATTORNEY.

Re: Business License/Partnership Agmt.

To add to the previous comment, unlike the issue of forming a business entity and obtaining whatever licenses it needs to conduct its business under applicable state and federal law, the content of your website may be subject to regulation in more than one state and even in foreign countries. This is a relatively new legal issue and for small startups that do not deal in inherently dangerous, illegal or otherwise controversial subjects (think gambling, pornography, explosives, weapons, etc.) it may not be a high priority, but Yahoo did get sued in France and lost (permitting sales of Nazi paraphernalia at its auctions that were accessible to French residents). If you have concerns about the nature of your products or services or the way you advertise or market them (certain marketing schemes are more sensitive or plain unlawful) contact a qualified e-Commerce lawyer. Such matters as advertising, competition, privacy and public safety tend to be regulated in every jurisdiction differently. Good luck.

The above reply is the nature of general information, is not legal advice and should not be relied on as such.