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BizLawyerNate, Attorney
Category: Business Law
Satisfied Customers: 10686
Experience:  7 Years of Legal Experience Representing Small Business Owners
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Im starting a new business in the area of telecommunications, in particular Id

Resolved Question:

I'm starting a new business in the area of telecommunications, in particular I'd like to provide IP telephony for businesses. I will be providing telephony services but it will be through other Voip carriers. How do I setup my legal framework as a small entrepreneur in this area? Legal / Compliance / FCC regulations?
Submitted: 6 years ago via RocketLawyer.
Category: Business Law
Expert:  BizLawyerNate replied 6 years ago.
Thank you for your question and welcome to Just Answer.

When you say you will be providing service through other VoIP carriers, are you going to simply be, say - creating an account with Vonage and then marking up and reselling phone numbers and access to the business customer?

I'm just trying to determine whether you need to worry about FCC regulations. If you can avoid that, you should at all costs.

Customer: replied 6 years ago.
At this time, my business plan is to buy numbers from other carriers (who offer 911 services and such) and resale the numbers with my service which is basically a PBX system for small businesses. So even though I will not (at this time) be the carrier which "holds" the number (same thing for outgoing calls), I will still be in the middle as a PBX hosting company between the customer and other VIOP carriers. I do not know if the FCC would apply to me in this case but definitely I would need some protection and compliance for carrying voice telephony traffic.
Expert:  BizLawyerNate replied 6 years ago.
Good. That model will not require you to have any FCC issues.

You would need to form an LLC. Forms and instructions for California are here

The LLC will provide you all the personal liability protection you need.

As well, you will need an FEIN (which you can get online from the IRS) and a local business license.

Once all that is done, you're ready to go.

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Customer: replied 6 years ago.
I'm very thankful for your answer but I must ask you if you are very informed about this topic and are speaking from your expertise in this area?
What about all the voice taxes attached, if my VOIP carrier charges taxes I don't have to collect any phone-related taxes? What if he doesn't ?

I already have an LLC in AZ. I would like to sell my services in Ca or any other state. Do I need a license in every state?
Expert:  BizLawyerNate replied 6 years ago.
Actually, I have had a decent amount of experience in dealing with FCC regulations. You are not a phone number provider. You are the middle man. You would take any taxes collected by your supplier as costs and factor them into your price.

If you have an Arizona LLC already, then that is all you need. You don't need to be registered in every state that you are going to do business in unless you have a permanent location there.
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