A business that is a legitimate business is formed and operates under laws pertaining to various things. In the United States, a business must follow Federal law and State law appropriate to both where the business is registered, headquartered, and operates (which may be one State or include many States).
So to suggest that operating exclusively in Bitcoins puts the business outside of laws regulations is like saying a business located in the U.S. that only operates in Euro or Yuan does not have to follow the appropriate laws and regulations.
After all, Bitcoins is a currency, is it not? Perhaps if the concept of Bitcoin was not a currency, but just a tradable good, then a business would have much greater flexibility and would only really have legal scenarios pop up when dealing with gains created from cashing out of said good.
Bitcoin is not
yet a Currency.
However, I agree with the fact that a Company must follow local laws. But, for example, if I have a Company which pays its taxes, follow local laws and trades Bitcoins (I could trade Monopoly money as well), there is no reason why local Gov. should close me or request to be registered as a financial company/brokerage company.
Take a look at Linden Lab. They have been in business in the State of California for years now and they do have their own "virtual Currency, The Linden" moving millions..... but, because Linden is not a Fiat Currency, they do have to follow the Law like any other company without being considered a Financial institution.
I don't understand. All definitions I have ever seen state Bitcoin is a currency. Even if only two people use it, it still is a currency, right (accepted medium of exchange). But I'm also not suggesting a business should be closed down. I'm just stating that the Bitcoins need to have a value associated with the local currency. Think accounting assets, liabilities, stockholder/blah blah blah. If you own a truck in a business, you have to give it a value whether as an expense involving cost for purchase or asset as far as a value associated with it, or maybe it has a car loan. You could "trade" the truck as medium of exchange, but it still has to have a value associated with it.
Also to comment on the bitcoin business does not need a physical place, that may be true BUT I keep seeing over and over again how people want existing businesses to accept bitcoins to help grow the bitcoin market. Well MOST businesses, whether they physically exist or not from a retail standpoint still need a physical registered location to legally operate.
