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TheSixthPoint
02-13-2014, 08:59 PM
Hi everyone - I have recently incorporated a new technical consulting LLC in Delaware. There are three members of the LLC - myself and two others. We have done all of the necessary paperwork and have an EIN and everything, but before we start doing business we need to figure out what business licenses we need (if any). I have scoured the web and seem to keep coming up empty, so here are the details:

Three members, all living in different states: PA, NY, and MN. We incorporated in Delaware and are using a registered agent.
We will work remotely with clients doing computer programming and other technical contracts involving software in infrastructure. All work is remote - we have no brick and mortar presence.

Now here are my questions:

1. I assume we need a business license - but since all of our work is remote, I am not sure what licenses are required. I would assume we would just need a foreign LLC registration. The confusing part is that the three of us live in different states, so should we just pick one person's house as an "HQ" and get a foreign LLC registration for that site?

2. Do we need to charge sales tax to our clients for our services as consultants?

Thanks in advance for any help - I feel like the situation of having an internet company with people in different states must be common, but I can't find a clear answer for what to do. If you need me to clarify anything please ask.

vangogh
02-13-2014, 11:53 PM
Welcome to the forum TheSixthPoint. I wouldn't think you'd need a license for a consulting business, though it's likely state dependent. Check the website for the Secretary of State for Delaware. Since your incorporated in Delaware those should be the rules you have to follow. I'm guessing you won't need a license though. As far as sales tax is concerned that's for products. If you sell services you don't need to collect sales tax, though again check with Delaware. The Secretary of State websites really is a good place to start. Of course, as I'm typing that I searched the site and didn't find any information about licensing. I did find their contact info (http://corp.delaware.gov/contact.shtml). Probably a good idea to give them a call and ask directly. They'll be able to answer your questions or point you to someone who can.

TheSixthPoint
02-15-2014, 02:52 AM
Hi vangogh - thanks for you tips. I guess I don't think that we will be needing any licenses or anything - but we will probably need to register as a foreign LLC somewhere. My main confusion is that we are 3 people working remotely in 3 different states taking customers from various other states. Who should we pay taxes to? Should we establish ourselves as a foreign LLC in one of the three states that we live in and just call that our "home base"? Thanks a lot for any more info.

ketanco
02-15-2014, 09:05 PM
in delaware you would rent an office address from one of those mailing address providers, not a PO box but a street address, which will act as your registered agent. that will be your virtual office and official address. i think that this is allowed - someone correct me if i am wrong. as far as whether you need license or not for tech consulting, i dont know that. you must check with delaware state consumer department. and since your LLC is a totally separate legal entity than you in person, you will not have anything to do in your home state - again someone correct me if I am wrong...

TheSixthPoint
02-15-2014, 09:45 PM
kentanco - thanks. We have a registered agent currently. I'm curious if we can actually use that address as our business address. I hope that you are correct as that would be very convenient. Can anyone confirm?

vangogh
02-19-2014, 12:30 AM
Again this isn't my area of expertise, but I think the address for the registered agent would be your business address. The best source for information is going to be the state of Delaware. I'd give them a call. Check the link I posted above as the other side has contact info. Anything we say here is likely just a guess. I'm not sure if anyone here has an LLC in Delaware and so none of us are good confirmation.