Legal Question in Business Law in New Jersey

Re: Internet Based Business

To my knowledge, unless you are physically maintaining an office in another state, you need not qualify to do internet business in any other state. However, should you have a customer dispute, which may require a court appearance, you cannot appear in another state if you have not registered to do business there. I suggest your terms specify that all orders, contracts, etc., are not valid unless received and processed through the NJ office. If there are any formal contracts, or dispute language, I also suggest you state therein that all disputes are to be resolved by proceedings in NJ and applying NJ law.

Re: Internet Based Business

Simply put, NO.

As Mr. LeVine stated, you do need to be smart about what you are doing. Talk with other website owners, read (there are lots-o-books on internet law and starting web businesses), then go to an attorney! It ALWAYS costs more to get you a__ out of trouble than it would have taken to keep it out of trouble to begin with! Talk with a few attorneys, and go with the one you feel comfortable with. If you do your homework, you may be able to keep your costs down, by reducing the research and time any attorney you hire may need to spend helping you (time is $$$). Send him/her e-mails instead of lenghty calls, send them sample documents, or refer them to website that will be similar to yours (I'm assuming most attys will not be as tech savy as you - perhaps its the engineer in me, but learning never stops, and the better informed YOU and your atty are, the better results you will get).

You need a clear disclaimer and purchase agreement to pop up before they can process or complete their order. You may want to require mediation and/or arbitration first, possibly even limit any disputes to arbitration. You may want to specify what arbitration entity that must be used, who must pay, what state it will be in (maybe allow for teleconferenced arbitration to keep cost down, unless higher cost will discourage complaints for you, etc., etc.

Be honest (I hate scum-bags), be smart.

Good luck.

Kevin J. Begley

Re: Internet Based Business

You may be subject to tax in other states depending upon your type of business and contacts within the state. Even if you do not maintain an office in a site, if you sell enough merchandise in a particular state, that state may try to tax you.

Because the states are hungry for revenue, you must anticipate attempts at taxing and auditing your business. You should immediately contact a tax and business attorney to help you establish your business right.

Please tak a look at my web site http://www.taxesq.com/

Ronald J. Cappuccio, J.D., LL.M.(Tax)

Re: Internet Based Business

There is no need to register to do business in any other State except New Jersey unless you plan to maintain an office elsewhere.

There are two reasons to register as a business in a State. First, you may wish to avail yourself of the business statutes of the State such as those that give your business a name and those that limit your personal liability. You have done this in New Jersey. Second, you may wish to use the courts of a foreign State in which you have a significant presence (such as an office from which you sell goods or services). The Commerce Clause of the U.S. Constitution protects your right to make contracts with citizens of foreign States and requires other States to enforce them even if you are not a �citizen� of that State.

As a matter of good practice, you should include a provision in your contracts that requires all disputes to be decided in New Jersey and under the laws of New Jersey.