Actually the Vermont law amends the definitions associate with the formation of legal entities so that Vermont law does not require the filing of paper documents; nor require any member of the company to live in VT.

You can see more detail at http://vermontvirtual.org/Vermont_legislation_--_as_passed

Interesting... this seems kind of weird:

> If you use a template Operating Agreement that we provide {link to come}, you can establish a company that is based solely (or primarily) on the pooling of time, attention and effort (as opposed to investment of capital in exchange for shares).

I wonder what the practical issues are regarding these, like can you get a bank account 'entirely online'? You pretty much need that part too, to have a real company.

Re: "entirely online" bank accounts, E*Trade is a company providing such services.

ING Direct does this too. I feel like I've seen quite a few online-only banks lately, usually in conjunction with high-yield online savings accounts.