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How to use electronic configuration?

What address configuration to use for an internet business LLC?

  • I'm the owner of an Wyoming LLC (an internet startup), and so far I've been using a California address for both business (principal) and mailing addresses. 1) I'm not entirely sure what's the difference between them as in what kind of addresses can be in one and other. The business infrastructure is all virtual, it doesn't have any physicial offices anywhere in the world, so, for now, I'm using a California virtual address for both addresses. This also gives me more privacy. Is that a good configuration? 2) I've heard that California usually goes after LLCs that have use a Cali address but are incorporated in other states, because the Cali address creates a state 'nexus'. What are the real risks of that, and what would be the real consequences if that happens? Thanks in advance.

  • Answer:

    1. You have raised a business, rather than legal, Q. If that arrangement works for you, it's fine. 2. The precise nexus test is whether is whether the LLC engages in "repeated and successive transactions" within the state. If so, the LLC must register as a foreign entity and pay (at least) $800 per year. Please see Doing Business in CA? Be Sure to Register at http://danashultz.com/blog/2010/05/24/doing-business-in-ca-be-sure-to-register/.This answer is not a substitute for professional legal advice....

Dana H. Shultz at Quora Visit the source

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You definitely have an issue, California is particularly aggressive about going after out of state businesses that they believe have nexus in California.  They recently passed a new law creating a concept of "economic nexus", basically if you do enough business in California, then you are subject to California taxation. I am not saying you could not win the argument if the mailing address is the only connection, but my opinion is you would be better off to use a Wyoming virtual address rather than a California one.

Wray Rives

Just pay a few dollars a month for those virtual office space providers and you can use their address.

Sylvia B. Pacher

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