I am going into business with 5 others. We all live in different states, and are starting an online business. When registering the business,...

Question

I am going into business with 5 others. We all live in different states, and are starting an online business. When registering the business, do we need to each register in our state, or can just one of us do it? Can we register in any state or does it have to be one that one of us lives in?

Answer

Generally speaking,

First the partners should determine what would be the best state to form the company in. It could be one of the six states or could be a seventh state. There are various factors that should be considered such as the law of the state, its location in relations to the partners, tax issues etc.

Second, it is possible that the company would then need to register as a "foreign company" in each of the states where the partners live if they will be conducting business of the company from that state.

It's easy to make the wrong decisions and ending it costing a lot. Since you are six, consider for all six to chip in and retain an attorney who would act as the company's attorney and could advise on the best interests of the company in such a scenario.

Please contact my office directly for assistance in this matter.

Roman R. Fichman, Esq.

www.TheLegalists.com │ @TheLegalist

email: Info (@) TheLegalists (dot) com

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