reason being...for customers there would be No Sales Tax on products ie computer parts and video games ...this is strictly an online business...please hep....if this is possible ...how would i proceed in forming an LLC in Oregon if i live in MN
You do not have to be a resident of Oregon to form an Oregon limited liability company. A Minnesota resident can form an Oregon limited liability. you can form the LLC online at the website for the Oregon Secretary of State.
However, there is quite a bit more to avoiding sales/use tax. While Oregon does not have a sales or use tax, Oregon law only applies to transactions in Oregon. In order for a transaction to have an Oregon nexus, you would need to have an office or employee physically in Oregon.
For sales to non-Oregon residents, you will need to consult the sales/use tax law of each state where you are located and where you have customers. This is a constantly changing area right now and requires a lot of work to get and maintain accurate information. If you get it wrong you can be liable for the sales and use taxes you were supposed to collect whether you collected them or not.
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Nothing prevents you from forming an Oregon LLC but that will not relieve you of tax liabilities in the state from which sales are actually made and/or shipped. You should consult a CPA or tax attorney with the details.
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I agree with what was already said. Operation of an internet business involves way more than the question of where to locate your operating entity. A good tax professional will need to be part of your team. As for forming an LLC in Oregon, you will be required to have a registered agent physically located in Oregon - someone who will accept service of legal documents on your behalf. There are registered agent companies with which you can contract for this service.
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