Legal Question in Business Law in Virginia

Internet business start-up

I will be moving from MD to Lynchburg, VA within the next month or two. I am interested in starting an online service-based business and have acquired a domain name. I am currently renting a room from someone in MD and when I move to VA, I will probably be in an apartment for around three months before moving to a house, so I don't have yet have a stable permanent address to list as the business address. I would like to register my business, but I don't know if I can register in Lynchburg without a local address to list as my business address. I'd like to get things up and running as soon as possible, but I am finding it difficult to find information on the legal requirements for registering an Internet business in a state you don't currently live in. What do I need to do?


Asked on 2/08/06, 10:25 am

1 Answer from Attorneys

Jonathon Moseley Jonathon A. Moseley

Re: Internet business start-up

Well, it depends on what you mean by "register."

You can of course register a domain name and

web hosting service from your current location.

If you want to create a corporation or LLC (I

recommend a corporation despite all the hype),

you will need an address.

You have two choices: Incorporate in Maryland

and then later register the corporation in

Virginia as a "foreign" corporation (non-Virginian). This would allow you to incorporate immediately and then worry about an address later. However, it would also result in some extra paperwork and complexity because you would have to maintain two state registrations, one in Maryland and one in Virginia, with extra paperwork and expense (though not so much).

Second, you can incorporate in Virginia directly. The only address you need that must be inside Virginia is for the REGISTERED AGENT. All other addresses could be outside Virginia. So you could start the incorporation process now with your Maryland address, and change the address on file later when you move.

However, the registered agent must be someone in

Virginia who can receive legal notices and service of process of legal matters, if any.

There are three choices for a registered agent:

(1) an officer of the corporation with a Virginia

address. (2) any attorney licensed in Virginia,

or (3) a professional registered agent company

like CT Corporation Systems or one of several

others. (If you go this route, email me first,

because I don't like CT Corp and would recommend others.)

Frequently when you pay an attorney to incorporate for you, they will automatically list themselves (with your consent) as the registered agent. That would solve your problem right there.

I do incorporations for a low price.

In terms of other requirements, there is nothing I know of that couldn't wait. You should get a

business license in Lynchburg (a little unclear

with an internet business, but better not to get

in trouble, so get one). However, that only

applies once you are IN Lynchburg and as long as

you are in the process of applying, they WILL NOT

care if you do it in the first week or two of

being in Lynchburg. The only thing a business

license does is get you on the TAX list to pay

certain local taxes. ($35 per year unless you

gross over $100,000, then it is more, plus a

tax on inventory and business personal property.)

I would seriously explore a "Mail Boxes Etc"

as an address in Lynchburg as a temporary address

and then change it when you can.

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Answered on 2/08/06, 9:11 pm


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