Legal Question in Business Law in Virginia

business licenses

I own a C-Corp. It is an internet business. a professional profile creation website where revenues are generated via subscriptions, advertising packages, primary profile placements on the site, and job postings. I also have to create partnerships with college alumni associations across the United States for part of the marketing process. So I will be doing business in all 50 states but not necessarily going to all states since I'm on the web. What kind of licenses do I need to apply for and in what states? Also I posed a question earlier on lawguru and I'm not sure if it was reviewed. I am able to issue 25,000 shares of stock from my corp. I have read that I have the ability to issue myself (since I am the founder/principle/director/agent/CEO) as many stocks as I please without purchasing them with physical assets, instead I'd be using ''sweat equity.'' I need to confirm this before I sit down with some potential investors on June 20th. Thank you for your time


Asked on 6/12/08, 12:09 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: business licenses

As primarily an Internet operator, I would doubt that you would need to obtain business licenses for all 50 states, but it's possible that you may need to for some, particularly those which comprise a major share of your business.

As to the "sweat equity" issue and the propriety of issuing yourself stock on this basis, this inquiry likely involves rules and regulations of the SEC and possibly those of the "Blue Sky" regulator agency of the state where you're registered or incoporated. There may also be federal tax/IRS considerations regarding this issue.

Considering the above, you would appear well advised to consult with a business law, entity formation attorney who is conversant with these various areas and aspects of business law, and who should be able to provide you, accordingly, with sound legal advice on these matters.

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Answered on 6/12/08, 10:17 am


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