Registering a Dropshipping Business in Another State

2 replies
  • ECOMMERCE
  • |
Hello everyone!

I'm just beginning at this dropshipping stuff. I recently registered my business (sole proprietorship) in my home state and my home county, but managed to read online that other states offer extra benefits for businesses, such as no income / business tax.

That's amazing, isn't it? Saving 5% profit adds up!

Is it possible for dropshipping companies to register or switch to another state? Is it as easy as re-registering in the state I'm interested in? Would I need to do anything with regards to the county I'm registered in?

Thanks everyone! I really appreciate it!

MercifulTiger
#business #dropshipping #legal #registering #state
  • Profile picture of the author rafsco
    First off, I am not a business lawyer, but for what I know, in order to register a business in another state you must have some sort of operation in that state, otherwise everybody would be opening businesses in FL and TX. If you operate from CA, i.e., you have to pay taxes in CA, apply sale tax for all CA purchases and don't apply it for out of state sales.
    Good luck!
    Signature

    Joe Falcade
    Make Money with greedyjoe.com

    {{ DiscussionBoard.errors[9354419].message }}
    • Profile picture of the author MercifulTiger
      Originally Posted by rafsco View Post

      First off, I am not a business lawyer, but for what I know, in order to register a business in another state you must have some sort of operation in that state, otherwise everybody would be opening businesses in FL and TX. If you operate from CA, i.e., you have to pay taxes in CA, apply sale tax for all CA purchases and don't apply it for out of state sales.
      Good luck!
      Thanks for the reply! You brought up something I was fairly confused about. Definitely, if you operate in a state, it makes sense that you must register in that state.

      But dropshipping, as far as I'm concerned, other than blogging, seems to be the type of business that is least constrained by location (in fact, not restrained by location at all). As long as I have a dropshipping business with no employees, what stops me from registering my business in another state? Unless simply working on the website from home counts as "operating" (no physical interaction with customers or employees)?
      {{ DiscussionBoard.errors[9356062].message }}

Trending Topics