Foreign corporation VA income tax (Blacksburg: lawyer, moving, design)

[mspatts]

All:

I have an LLC incorporated in Delaware. It is a consulting
business providing web design/development services (no tangible goods) for clients across multiple states via the internet. I work out of my home, with no physical office.

Since the company is based in Delaware, if I move to Virginia (without moving the company itself), is the company subject to any Virginia income tax? Would it only be subject to income tax on income from Virginia clients?

Can anyone point me to the appropriate VA tax codes/cases that apply to this ?

Thanks,
Mark

[seanpecor]

FYI, when the Virginia gov't was establishing their LLC structure, they started with Delaware's structure. And then they made it even more business-friendly. At least that's what a Blacksburg attorney specializing in seed investment told me.

When I moved to Virginia my Vermont S-Corp came with me. If memory serves, my business income was attributable entirely to Virginia (irregardless of the location of clients) and my accountants only paid the Vermont flat filing fees. This is pretty straightforward. Otherwise Delaware's roads would be paved in gold, bathroom toilets in Delaware's rest areas would be sculpted from alabaster, and so on

After two years of operating a foreign company in Virginia, I opted to convert to a Virginia C-Corporation. I have two other Virginia LLCs to insulate the risk exposure of my horse farm from my family and mainline business (ebusiness development). Personally, I'd recommend having a lawyer convert your Delaware LLC to a Virginia LLC, but that's not required.

Sean