Accounting & Bookkeeping Forum

[JMan1234]

I posted this yesterday, but I cannot find the original post.
If a mod deleted it, please PM me and let me know why.

My brother and I are starting a business that will offer, among other things, web design for small and medium sized businesses.

We will be doing business ONLINE and OFFLINE.
One of us resides in Missouri, and the other in Kansas.

As far as registering our business and getting everything setup....what state would be better to register in? Missouri or Kansas (is any state better than the other on taxes).

Also, since we will be accepting payment online, do we just register for our business in the state we reside? Or do we have to register in all 50 states?

Thanks!

[QBConsultant]

Hi! I'll bet you're in the Kansas City area like me??? You need to decide where the business office/headquarters will be--MO or KS. Then, you need to register your business with the Secretary of state. The state tax laws are similar in both states.

Before you register there are other steps you need to take though. You need to decide what type of entity you'll be and obtain a tax ID number. Then, you can regsiter with the state. Since you're providing a service, in MO you don't need to collect sales taxes, but in KS (if you perform the work there), I think you do. So, you'll have to register with the state for a sales tax license. I wrote a book with all the relevant steps, info in it (although it is geared towards QB consulting, much of the info would be helpful to you starting your business). You might also contact the local SBDC (at JCCC or UMKC) and meet with consultant who can help you too.

Don't forget to set up your accounting records right from the beginning too! Good luck!