FAQ 4th Edition

Every week I gather all of the most frequent questions I am asked in hopes the questions and answer will benefit others who have had the same question, or maybe didn't know it was a topic that applied to them.

1. Does ADA (American's with Disabilities Act) website compliance apply to my website, blog, or e-commerce site?

Yes. A large part of the act only applies to government sites, but there are still sections that apply to non-government sites. Over 70% of consumers will leave a website that is not easily accessible, think about what the percentage would be for those with disabilities. By not implementing the requirements you, of course, are opening yourself up to legal action, but you also are losing clients, friends, and followers the moment your website loads. Since we have the option to customize our websites/blogs/stores, our platforms are not inherently compliant as you might assume. And it does not take much to become compliant, most of the changes can be done for free without revamping your entire platform.

2. Do I have to incorporate before I have a client?

If you are "open for business" and seeking clients, yes. Although you don't have a client yet, you are actively promoting your business as a business and therefore you must be legal in the eyes of your state, city, county, IRS and other applicable agencies. If you do not want to incorporate as an LLC or other official entity right away, you can simply register as a Sole-Proprietor in the meantime and it is the easiest and cheapest option. But, operating as a Sole-Proprietor should not be long term.

3. Can I avoid state sales tax in my home state by incorporating somewhere like Delaware that does not have state sales tax?

No. This is a large misconception and the reason you hear it's best to incorporate in states like Delaware. You will still have to file in the state that you reside in to be legal. You file as a foreign entity and you still have to pay your states sales tax, since you reside there. If this is the only reason you are considering incorporating in another state than your own, then it's only more hassle and paperwork for no reason.

As always, leave any questions you have below or on my FB page, Washburn's Consulting so I can answer them in the next FAQ!

**The above is for educational and informational purposes only and is not legal advice. The content does not represent a client-consultant relationship. Always speak with a qualified Business Consultant, Lawyer or Accountant for items of this nature.

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