Expert: Lee Horner - 2/16/2009

Question
I am in the process of starting an online business. I currently live in California but I move very often due to my line of work. I would like to start an LLC in the state of Delaware. My question is if my online business is "based" in Delaware but I pay income tax in another state like California will this present challenges for me come tax time? In addition because I would not have to charge sales tax for the products I sale online if im based in DE does that mean that my company will pay more taxes come tax time(I also plan to sell products internationally)? Lastly because DE does not have a sales tax will I still need to get a Sales Tax ID # or something equivalent?

I have searched and read many articles and books but cant seem to find these answers. If you can answer this for me it would be GREATLY APPRECIATED!! Thanks."

Answer
I can't give you a simple answer to the sales tax question as it's more a local taxation issue;  many people simply start selling goods on the internet and wait & see if the tax people do anything;  I don't recommend that but I have heard of that being done.  Have you looked at Wyoming as a forum state?  We have an LLC there and our annual renewal fees are $35.00 however you must have an in-state resident agent;  the company I deal with supplies that for $199 a year.  Good luck with your venture.  Lee Horner