I would agree with you, when it comes to most non-virtual companies. There are also tax implications. But for virtual companies, this is all solved by jurisdic

I would agree with you, when it comes to most non-virtual companies. There are also tax implications. But for virtual companies, this is all solved by jurisdiction on the purchase contract, I believe. In other words, people placing orders on your website is equivalent to them driving to the state and placing them in person. So the transaction is inside state boundaries, and there is no need to foreign qualify in other states. In addition, I had a company that sold services electronically but also shipped smaller lesser physical items as part (signs for the service... kind of complicated but the actual service doesnt matter). We never had any issues across state lines. I think employees and locations are what count, for tax reasons, but buyers/consumers get to handle all the rest via use taxes in their state. Contract issues above apply. At least, this is what I have been told, I'm no attorney. No idea about Vermont, sounds interesting though.