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One has an LLC in Delaware but resides in North Carolina. All sales of the company are online and not in any one particular state.

Is a business license needed in either of Delaware or North Carolina, both or neither?

The business is registered as an LLC in Delaware. The sole member of the LLC resides in North Carolina but sales are not in any particular state. I do not know if that means the business technically operates in Delaware or North Carolina. There is no physical location so I do not know if a business license is needed as well. The business is completely online.

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  • Do you mean the business operates out of Delaware, or is it incorporated in Delaware and operates in a third state?
    – user6726
    Sep 3, 2017 at 22:13
  • The business is registered as an LLC in Delaware. The sole member of the LLC resides in North Carolina but sales are not in any particular state. I do not know if that means the business technically operates in Delaware or North Carolina. Because of there being no physical location I do not know if a business license is needed as well. The business is completely online.
    – shell
    Sep 3, 2017 at 23:09
  • So you also have a Delaware registered agent, I assume. As I understand it, you get a Delaware license unless you register as an LLC in North Carolina. It's an interesting question, and I hope somebody can provide evidence for an answer.
    – user6726
    Sep 4, 2017 at 1:27

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You should check with a local attorney to get the most correct answer as these things can vary.

Delaware and North Carolina, at least assuming the business is run from North Carolina. Obviously, it is not necessary to buy a business license in every state one does business in, so the statement that sales are not in any particular state is irrelevant. However, depending on the circumstances, the business may be sued in every state it does business in.

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The "internet" is not a place. Doing business "online" is subject to the laws of wherever the transaction is deemed to have taken place, e.g., where the customer is, where the vendor's offices are, where the servers are located, where the owner is incorporated, etc. The fact that an "online" business is "not in any particular state" may simply meaning it is "doing business" under the regulations of ALL of those states.

However, many states do not require a license to "do business" in their state if your only contact is by online advertising and you only make direct sales shipped from another state and not with any local offices or inventory.

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