Passage of Bill H-458 is a necessary but just a first step along the path towards making Vermont into the “Delaware of the Net”….Testimony of David R. Johnson Before the House Commerce Committee
I read today that Vermont may become the Delaware of the Net on June 6th .I never used to worry about the unintended consequences of Vermont tax law. Did we want to be ‘the Delaware of the Net ‘? Naturally and/or perhaps selfishly I wonder what’s in it for Vermonters ? Jobs? Any technical administration could be outsourced anywhere in the World I imagine.Virtual law cases and lawyers might have some in-State impact.Gov.Douglas who is averse to taxing brick and mortar corporations would be even less likely to tax a virtual corporation in Vermont.Virtual sales taxes on Sesond Life products ? It is suggested from the start that fees remain low to encourage virtual registration .The e-state technical side of this may be lagging a little if the recent level 3 web server crash problems continue.
This law may not be a bad thing,it may even be good thing,but I drive over poorly maintained roads and bridges,health care is expensive ,State services are being cut and solutions seem out of reach for the near term so selfishly I wonder who this helps?
David R. Johnson’s testimony continued ….I recommend that the Secretary of State initially impose a nominal filing fee for accepting the filings necessary for establishing an online company.
By allowing innovation by the private sector, including the members of the Vermont Bar who will assist such companies, this Bill may make it easier for people all over the world to find a job (online) and to create valuable products and services (a portion of the revenues from which will rightly become payable to Vermont in the form of fees — in exchange for the provision of an electronic company headquarters).
http://cairns.typepad.com/blog…
Under the new law, for example, a board meeting may be conducted “in person or through the use of [an] electronic or telecommunications medium.” A “‘virtual company’ will be, as a legal matter, a Vermont limited liability company,” said Johnson. And other states are required to recognize the corporation as a legitimate LLC. So while in the past many companies registered in Delaware to take advantage of that state’s business-friendly policies, with this law, Internet-driven startups may find Vermont even more ideal.
http://gigaom.com/2008/06/17/v…
http://dotank.nyls.edu/VisualC… http://www.leg.state.vt.us/doc…