In the online virtual world of Second Life, inhabitants own many types of businesses, and it’s common for all the assets of some real technology companies to exist in digital form. Now Vermont has passed a law to encourage such firms to incorporate in the Green Mountain State.
While some portions of the law already exist in the corporation statutes of other states, the new law’s proponents say Vermont’s law is unique in that it encourages businesses to operate exclusively in cyberspace.
“What we’ve essentially done is open up the full business organization to the digital revolution,” said Oliver Goodenough, a professor of business law at Vermont Law School, who helped craft the legislation.
The legislation, signed into law by Gov. Jim Douglas on June 6, allows the formation of Vermont limited liability companies (LLC) without any paper documentation or physical location, enabling owners to file all documents with the state online and to digitally store business bylaws and ownership records.
The idea for the law stemmed from a discussion about virtual enterprises at the Berkman Center for Internet and Society at Harvard Law School, Goodenough said. Goodenough’s wife, state Rep. Alison Clarkson, D-Woodstock, submitted the bill in the Legislature, he said.
Like many states, Vermont has made creating a hospitable place for technology companies a key part of its economic growth plan. The virtual company law is consistent with this strategy, said Kevin Dorn, secretary of the state’s Agency of Commerce and Community Development.
“(The law) is really sending out the message,” Dorn said, “that Vermont is a technology state.”
RSS Feeds
Comments
Please Login/Register to post comments.
No comments have been added or approved.