Actually you can incorporate in any state and do buisness as that corporation in any other state, although there may be additional local filings "technically" required. Since you are doing internet business, you probably don't need a "brick-and-mortar" office and you can appoint yourself as a Business Agent for your coporation and work out of your home quite legally. With the proper corporate documents; Articles of Incorporation, Letter of Good Standing for the state in which you are incorporated, an EIN (Employer Identification Number); you need this whether or not your corporation has any employees, you can open bank accounts in your state for the corporation.
The EIN is the equivalent of an SSN (Social Security Number) for businesses and corporations and you MUST have one to do business as a corporation.
LLCs are not my favorite as they are transparent, whereas the only information publicly available for corproations are the names of the corporate offcers (Not necessarily you!) , which may be nominal and the name of the Registered Agent. As a consequence, I do not recommend LLCs for use in internet marketing. In short, if you set things up properly, it is both quite possible and quite legal for a person to completely control and operate a corporation in near complete anonymity!
This could be a very good thing if you are perhaps a school teacher but also an adult webmaster. You operate through your coporation and no one knows who you are. This setup will keep your Board of Education off your ass!
Tahe IRS cares only if your corporation is properly registered, in good standing, has an EIN and files its tax returns and couldn't care less about anything connected with the state in which you live, so state issues are not a concern to them. Most people for whom I've set up corporations don't even bother with state filings unless the state in which they live approaches them on the matter.
I set up corporations for others nation and world-wide and there are no additional requirements such as business licenses, insurance, social security numbers, etc. to set up the corporation and have been doing this for about ten years, so I know what is up with establishing corporations. The actual owners of those corporations then use the corporations to conduct business wherever they live.
Hit me up on AIM, Skype or ICQ if I can be of any assistance.
Sally.
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