Vermont may become the home of Internet Corporations in 2009

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Vermont may become the home of Internet Corporations in 2009

19 January 2009 117 views 6 Comments

Have a dream of growing your home-based business into a virtual corporation? Your dreams may come true this year thanks to Jim Douglas, the governor of Vermont. Up until now, U.S. law required limited liability companies to maintain physical headquarters, real life board meetings, and loads of boring paper work that have no significance in the digital world.

In July, 2008, Gov. Jim Douglas signed a Bill entitled “H.458, an Act Relating to Digital Corporate Transactions”. Under this new law, physical presence of company board directors is no longer required, as meetings may be conducted though the use of electronic or telecommunication medium. Companies’ employees may be scattered around the country or even around the globe, as having a terrestrial office is no longer mandatory.

Vermont plans to charge each newly registered virtual company up to $275 a year. State income taxes will apply only to income generated in the state of Vermont.

However the State of Vermont still has to adapt some systems before the possibilities created by the Bill can become realities. For example The Virtual Company project is now developing software and online tools to help the future virtual enterprises implement proper governance rules crucial for successful cooperation. Hopefully with proper political support this project soon advances and company registration process will start this year.

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6 Comments »

spot from skpkee said:

This is a great, forward-thinking idea Vermont has here. If it works (and I think it will) then I have to think other jurisdictions will end up doing the same.

(As an aside, I just came across your blog. There’s a really strong voice for entrepreneurs here. Well played)

spot’s last blog post..MagicJack vs. Vonage vs. Skype

# 8 February 2009 at 7:39 am

bethany from makeup artist san antonio said:

that is so awesome that they are using telecommunication through this new bill so that you don’t have to have a physical office but can have your company spread out. It makes so much more sense.

# 10 June 2009 at 3:14 pm

Shaz from Photoshop Tutorials said:

wow what a great news, you can do business virtually or digitally, but my question is they should have a plan on some other people who are just spamming cause others might not be online anymore after they got whatever they need to you, and left you hanging…

# 12 June 2009 at 7:27 am

Charles from Police Exam said:

At least some states are catching onto the realities of an internet business. Can’t say the same about other states.

Charles’s last blog post..2009 Police Officer Exams

# 14 June 2009 at 9:17 am

Ryan from Encinitas real estate said:

I think slowly all states will adopt this law because more and more people are turning towards Internet and into the Virtual world. Our online business is getting much more better than the business in our stores, some may feel that we should operate it from home to suit our schedule and now-a-days many work from home. The world is changing.

# 5 September 2009 at 4:42 pm