Every city, town and state has a variety of rules to regulate businesses operating within their bounds.
For instance, I live in the City of Angels. Within a 5 or 6-mile radius, in parts of Los Angeles (LA), you can be working in 5 or more distinct cities – West Hollywood, Beverly Hills, Santa Monica, Culver City, Malibu, and the City of Los Angeles – each with unique business license requirements. Have your cities and towns grown as complicated as ours?
Some people like to avoid the higher licensing costs in LA or other high-cost cities by establishing an address at a mail-box service with a street address (not a Post Office box) in a nearby area with lower business tax rates.
Unclear On The Concept
People think that by setting up business addresses in mail boxes, or by incorporating in tax-free states, they can avoid paying the higher taxes in their city, county or state.
There are two things wrong this concept.
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