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  1. #1
    Join Date
    Jan 2014
    Posts
    2

    Default Online Business with Out-Of-State Transactions

    Hi this is Mark out of Nevada. I was thinking about starting a deal a day like site (i.e. groupon, living social) which entails doing business out-of-state. In a nutshell, I would be offering local promotional deals on behalf of merchants all over the US. Promotional deals may include real products and services and in some cases I may have to fulfill these orders for the merchant. Just like the other sites that do this, each promotion would be targeted to consumers in that particular area. My business' presence and employees would be purely in Nevada and in my research it would appear that this is an interstate business, however since I will be targeting out-of-state consumers on behalf of their local merchants, the legality of it all is convoluted. Now my question, would I have to "qualify to do business" in every state in which a deal is offered? If so this would be a huge roadblock for me as this is pricey proposition for a brand new startup. Thanks in advance for your advice.
    VR,
    Mark

  2. #2
    Join Date
    Sep 2010
    Posts
    19,000

    Default Re: Online Business with Out-Of-State Transactions

    In the case of Groupon, it's the business where the "coupon" is redeemed that collects the sales tax (if any). You only generally need to register in the states you have a situs (physical presence) in. Comarketing with a business in a distant state will not usually create situs.

  3. #3
    Join Date
    Jan 2014
    Posts
    2

    Default Re: Online Business with Out-Of-State Transactions

    Quote Quoting flyingron
    View Post
    In the case of Groupon, it's the business where the "coupon" is redeemed that collects the sales tax (if any). You only generally need to register in the states you have a situs (physical presence) in. Comarketing with a business in a distant state will not usually create situs.
    Thanks, that's what I was thinking.

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