So I have been getting a bit more into affiliate marketing and such, and have an idea for a business, but ran into a really annoying issue. Apparently Amazon does not allow anyone who lives in Colorado to be part of their associates program, so I was curious if anyone has found a way around this (Legally of course)? I read about someone using Viglink, but apparently they also don't allow users in Colorado to use Amazon. I know there are plenty of other popular online stores, but my idea really integrates some aspects from Amazon, so it's pretty important. Just looking for any advice on this topic, from anyone else who has ran into this issue. Thanks!
Wow, it applies to Arkansas, Colorado, Maine, Minnesota, Missouri, or Rhode Island, as of the Amazon June 2014 TOS for affiliates so I would be excluded, as well. Legally, you can establish a new business entity in another state and have that business contract with Amazon. Of course, you will need a physical address, tax ID, bank account, etc., and orders/payments would have to be processed there, but that would be an entirely legal and appropriate way to work with Amazon. Where you happen to reside then becomes meaningless, from a business and legal perspective.
Before you take JRBiz's advice, consult with an attorney or your CPA. Unless you incorporate in another state, that could come back to bite you, since you will not actually be transacting business in the other state. It might work, but I suspect that is a loophole Colorado has already closed.
You should note that I was suggesting that the OP start a legitimate (i.e., corporation or partnership entity) business in another locale. You could not get a bank account there, otherwise, anyway. Companies open legal new businesses in different locales all of the time for a variety of reasons, including tax advantages. That is why so many companies, for example, incorporate in Delaware despite being located in other states. And, by all means use an attorney or accountant to ensure that it has been set up correctly. However, you should also note that I indicated that the business transactions would have to be processed in the new state if the OP wanted to do this legally, as he suggested he wanted to do. Reading more carefully, you might note that all of my comments were about getting around the Amazon restriction legally. Finally, states have almost no control over businesses that are not physically located in nor incorporated within their borders, hence the whole sales tax issue which is what Amazon is trying to avoid with their exclusion list. There is no "loophole" to be closed in that regard, unless the federal government gets involved on a national level which it has been unable to do since the Internet started.
I appreciate the responses. I had looked into a suggestion a friend had (But honestly I wasn't even sure what it was exactly), but he suggested forming an LLC out of neighboring state. Would that be a legal solution?
Yes, as long as it is the primary place of business for the company. That was part of my suggestion (forming a corporate entity in another state.)