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Re-incorporation Won’t Save Amazon Affiliate from Termination

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This post is based on a question that I answered on LawPivot: Q. I have a web business that has been adversely affected by the termination of Amazon’s affiliate program in California, where I currently run the business, resulting from the state’s new sales tax law. Does each state have its own requirements as to what constitutes “doing business” in that state, and is there any way I could maintain CA as my primary place of residence, were I to incorporate in a different state?

A. I believe your question about doing business is misdirected. While each state does have its own definitions of doing business (see When “Doing Business” isn’t “Doing Business”), other states’ definitions will not affect your relationship to CA: If you continue to run the business in CA, you will need to register in CA. More important, as shown in the following termination notice, Amazon is cutting off CA residents – and you still will be one:

Dana H. Shultz, Attorney at Law  +1 510 547-0545  dana [at] danashultz [dot] com
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Categories
General Legal, Tax