Vermont Ushers In Virtual Corporations
Though physically based in California, Google and Yahoo are, for official purposes, Delaware corporations because of the state’s corporate-friendly policies. You’ve probably heard the radio commercials about the (tax) benefits of setting up a Nevada LLC. Get ready, then, for some promotion of Vermont’s "virtual corporations."
Vermont’s new law, signed into effect by the governor the first week of June, makes the state the first not to require an LLC to have a physical headquarters or in-person board meetings. According to Vermont, in the digital age it’s perfectly reasonable a corporation be made up of scattered stakeholders running their company via email, instant messenger, and webcam.
GigaOm’s Wagner James Au chatted up New York Law School’s David Johnson, who worked with Vermont lawmakers to create the legislation. Johnson believes the new ability to form a "dynamic company" will be in high demand this century—"even for corporations that exist only in Second Life," writes Au.
The concept may be difficult for some of old-schoolers to imagine; though we already buy products from people operating out of their basements, it might take some time for the public to trust an avatar. In a Stickam world, though, maybe it’ll just take another class of college graduates to create the next virtual blockbuster. No doubt some great minds are already at work on this.