Vermont OKs Virtual Corporations

GigaOm reports that Vermont has finally given the go ahead to sweeping corporation reform which will allow easy creation of virtual corporations. This is an excellent move for those of us looking to do business in an increasingly virtual world. The post goes on to say:

On June 6th, Gov. Jim Douglas signed an inauspicious-sounding bill entitled “H.0888, Miscellaneous Tax Documents” that could revolutionize the way startup companies are formed and run. As New York Law School professor David Johnson explained to me, up until now, U.S. law required LLCs to have physical headquarters, in-person board meetings and other regulations that have little relevance in the digital age.

No longer. Under the new law, for example, a board meeting may be conducted “in person or through the use of [an] electronic or telecommunications medium.” A “‘virtual company’ will be, as a legal matter, a Vermont limited liability company,” said Johnson. And other states are required to recognize the corporation as a legitimate LLC. So while in the past many companies registered in Delaware to take advantage of that state’s business-friendly policies, with this law, Internet-driven startups may find Vermont even more ideal.

This is a very welcome step  and we applaud Vermont for making this move. This site will continue to track the law and the future of virtual corporations.