LifeinAsia - 3:01 pm on Jun 21, 2013 (gmt 0)
look into establishing a corporation in a more free state
Most likely this won't work as intended. If you are doing business, or have a physical presence, in a state, you most likely still need to register to do business in that state.
It can done in some cases, but it would mean moving your bank accounts out of state, making sure you host your site out of state, not ship any products from your state, firing all your in-state employees (of course, that would be hypocritical by anyone criticizing Amazon for terminating their affiliates...), etc. If you are answering customer calls, and those calls are going to a land line in your state, well, you get the picture.
And, of course, if you set things up and the state later determines you actually did have a physical presence in the state, you'll be liable for back franchise and state taxes, as well as penalties and interest.
If you really don't like your state's tax laws- vote with your feet and move to a more tax-friendly state. That's what thousands of Californians have been doing.