SAN LUIS OBISPO, California., June 20, 2021 / PRNewswire-PRWeb / – With concerns over the easing of COVID-19, the economy appears poised for rapid growth California. Some states are more friendly to new businesses, and opening a new office or factory in one of those states is tempting, but the Bishop of San Luis Toews Law Group, Inc. corporate attorneys warn that acting too quickly can lead to legal problems that can hinder business growth.
Expanding your business to another state isn’t as easy as opening a new storefront. Each state has specific requirements in terms of the prerequisites to qualify for doing business in its territory. This applies to both traditional brick-and-mortar business and those who operate in the online marketplace.
More and more companies are finding it easier to generate business without ever leaving the office in their home states. With online business growing, most states have laws requiring overseas sellers to collect and pay sales tax.
Whether opening a store or an office in another state, owning income-generating real estate as a California Most states require companies or the online sale of goods at least that a company must register as a “foreign company” with the foreign minister of that state. That should be easy, right? Just look up a state’s requirements and submit all required documentation.
Not necessarily. The Bishop of San Luis Corporate lawyers point out that each of the common business structures described below is treated differently:
- A small online business that attracts customers from other states through referrals from friends and family, social media awareness, and internet searches.
- An online consulting company that offers services instead of goods.
- An online based retail company actively marketing in other states.
- A company that opens a shop, office, or manufacturing facility in another state.
The best strategy for each of these companies is different. Specific questions must be asked and answered before continuing the qualification as a foreign company with the foreign minister of that state.
- What is the best strategy for a small online business with unpredictable sales outside of state to pay that state sales tax? Is it the best strategy to add a commercial “cart” to the website that handles all of the various sales taxes? Are there other legal solutions?
- Does a foreign advisory service have to register with the country of residence for every customer? Do these states have sales tax on services?
What is the best strategy for a large online retail company to accurately pay each state’s applicable sales tax?
- If you open a physical presence in a new state, what are the permit, license, and zoning requirements for the new area? Is a Fictitious Company Name (DBA) required?
- Which labor law regulations, wage taxes and insurance obligations are there?
And finally, with all of these questions answered, what is that state’s registration requirement? Which forms need to be filled out, fees to be paid, are there any liability requirements, who is the authorized representative for process delivery? A consultation with a qualified lawyer such as Bishop of San Luis Corporate lawyers will answer these and more questions.
In short, there is a lot of planning to be done before expanding to another state. Growing your business is a good thing, but you also need to make sure that it is growing and expanding as smoothly as possible.
The Bishop of San Luis The corporate law attorneys at Toews Law Group, Inc. pride themselves on their ability to provide a wide range of corporate law services. Corporate and commercial law is a superordinate body of law that applies to economically active persons and companies. Before starting a new company or expanding an existing one, consulting and reviewing all relevant aspects of the company is a solid strategy. Trust the attorneys at Toews Law Group, Inc. to ask the right questions and provide the best legal advice to help you achieve business goals.
This information was provided by Toews Law Group, Inc. for informational purposes only and does not constitute legal advice. The submission of this information is not intended to establish a mandate. Contacting us does not create a client relationship. Let a lawyer advise you on your individual situation.
Toews Law Group, Inc.
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San Luis Obispo, California 93401
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