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A couple clarifications please:
3. The person who volunteered to work for free is a close-relative and has no problems working for free. Is it illegal to work for free ? I have read that CEOs of troubled companies are ready to work for a Dollar per year.
5. My company will be registered in NC. Can I simply sell my company's software products all over the USA, or should I obtain licenses / permissions from individual states. Thanks.
No, it is not, per se, illegal for a family member to help out by working for free. They just don't fall into the definition of "employee".
As for state licensing, you will need to check with the individual states where you are doing business. I would doubt there are any states which would require a license to sell software. However, it is never a bad idea to check the particular state's website to make sure.
As for the LLC, if it wants the ability to use the court system of another state (for example, if you want to sue someone for failure to pay, or something) the LLC will need to qualify in that state. Qualification is a matter of filing a form, paying a fee and hiring a registered agent (there are companies who will act as registered agents for out of state businesses).
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