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06-26-2017 , 02:38 PM
If you create an LLC in a state other than CA do you have to qualify to do business in CA, what about any of the other states?

The LLC is just a legal entity for an app. So its sold over the web through Apple's app store.

Does anyone know?
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06-27-2017 , 02:13 PM
I'm no attorney, but do work with dozens of entrepreneurs to launch and support their first mobile and web app businesses - that being said, filing an LLC in any state won't prohibit you from doing business in another. all of my businesses are filed as IL or NV LLCs and do business in nearly every single state (California included.) do mind the tax structure there though (real pain)
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06-27-2017 , 03:44 PM
Quote:
Originally Posted by rainmaker1855
I'm no attorney, but do work with dozens of entrepreneurs to launch and support their first mobile and web app businesses - that being said, filing an LLC in any state won't prohibit you from doing business in another. all of my businesses are filed as IL or NV LLCs and do business in nearly every single state (California included.) do mind the tax structure there though (real pain)
Yeah thanks. I know that it would be relevant (prevent) if you had a physical business. Like if I create a MO LLC and have a warehouse in IL, I would need to qualify to do business in IL.

At this point my conclusions are pretty consistent with your post. I am just going to move forward as is. It doesn't seem like it will be a problem.
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06-28-2017 , 12:57 PM
Quote:
Originally Posted by rand
Yeah thanks. I know that it would be relevant (prevent) if you had a physical business. Like if I create a MO LLC and have a warehouse in IL, I would need to qualify to do business in IL.

At this point my conclusions are pretty consistent with your post. I am just going to move forward as is. It doesn't seem like it will be a problem.
Yea I think you'd be safe to proceed as planned.

Just curious, what type of app are you launching (if you want to share)? are you selling it with a download price? or is it just in-app purchases?
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06-28-2017 , 02:32 PM
Quote:
Originally Posted by rainmaker1855
Yea I think you'd be safe to proceed as planned.

Just curious, what type of app are you launching (if you want to share)? are you selling it with a download price? or is it just in-app purchases?
I don't mind sharing but I won't get into specific features right now.

There is a DL price and in app purchases. The app is specifically for poker players. I will share more details as development proceeds and we approach launch.

Thanks for the input.
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06-28-2017 , 06:36 PM
Quote:
Originally Posted by rand
If you create an LLC in a state other than CA do you have to qualify to do business in CA, what about any of the other states?

The LLC is just a legal entity for an app. So its sold over the web through Apple's app store.

Does anyone know?
Do you live in CA? If yes, then yes. If no, then maybe. Wherever your business is located is where you will NEED to file the llc or file as a foreign entity. Make sure you organize correctly or some random degen with legal knowledge can sue and pierce your corporate veil.
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06-28-2017 , 11:11 PM
nothing really to do with the thread. but i see amazon is now collecting sales tax in all states that have it....... for the longest time, one of amazon.com biggest advantages was no sales tax in many big states. and the company was obsessed with maintaining its exempt status i.e. if you were amazon employee wanting to go to california on vacation you were supposed to document it with company lawyer first.

and not sure exactly how this works and can be enforced but it seems like you are supposed to pay imputed tax to your own state when you buy something from a state that doesn't have sales tax....... the one big city where this matters is portland, oregon. vancouver, washington is really old and decrepit - the parts i've seen - partly due to washington having sales tax and oregon not.
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07-02-2017 , 03:03 PM
Quote:
Originally Posted by rivercitybirdie
nothing really to do with the thread. but i see amazon is now collecting sales tax in all states that have it....... for the longest time, one of amazon.com biggest advantages was no sales tax in many big states. and the company was obsessed with maintaining its exempt status i.e. if you were amazon employee wanting to go to california on vacation you were supposed to document it with company lawyer first.

and not sure exactly how this works and can be enforced but it seems like you are supposed to pay imputed tax to your own state when you buy something from a state that doesn't have sales tax....... the one big city where this matters is portland, oregon. vancouver, washington is really old and decrepit - the parts i've seen - partly due to washington having sales tax and oregon not.
I actually just finished the Everything Store: https://www.amazon.com/Everything-St.../dp/B00BWQW73E

It was really good. They specifically address this and initially it had to do with just what I said, if they had distribution centers in that state you paid sales tax. So they tried not to have centers in CA for example, but rather NV served SoCal or something.

I am not sure why everyone is paying sales tax currently or even if they are. I doubt AMZN has a presence in every state. I will look next time I buy, but I don't think I am paying it in MO?
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07-02-2017 , 03:27 PM
Amazon started collecting MO in February. If you buy from a 3rd party seller(that isn't based in MO), even if it's Prime, then no sales tax.
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07-02-2017 , 05:38 PM
Quote:
Originally Posted by rand
I actually just finished the Everything Store: https://www.amazon.com/Everything-St.../dp/B00BWQW73E

It was really good. They specifically address this and initially it had to do with just what I said, if they had distribution centers in that state you paid sales tax. So they tried not to have centers in CA for example, but rather NV served SoCal or something.

I am not sure why everyone is paying sales tax currently or even if they are. I doubt AMZN has a presence in every state. I will look next time I buy, but I don't think I am paying it in MO?
that's the book that gave me much of my useful amazon knowledge.....

i sense something changed in terms of relations with the states - a court ruling? - and not that amazon just voluntarily decided to start having a large distribution center in california and other giant states.

as you would know from reading the book they were obsessive about not having any physical presence in california and it sounded like it would affect their employee's choosing airline hubs to connect - not that cali is big domestic hub state anyway
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07-02-2017 , 07:02 PM
ok, it looks like amazon couldn't fulfill prime in a cost-effective way without distribution centers near their major markets...

but i do think amazon was in constant discussions with state governments before "voluntarily" making this decision. they may have been coaxed into it.
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07-05-2017 , 08:24 PM
Quote:
Originally Posted by rivercitybirdie
ok, it looks like amazon couldn't fulfill prime in a cost-effective way without distribution centers near their major markets...

but i do think amazon was in constant discussions with state governments before "voluntarily" making this decision. they may have been coaxed into it.
Yes it was a focal point for management. But they are so customer focused I bet the driving factor was logistics rather than political pressure.
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