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Business Formation Questions & Answers
1 Answer | Asked in Employment Law, Immigration Law and Business Formation for New York on
Q: My brother who has a greencard, has an llc with no other employee. With my opt, can I work in his llc?
James L. Arrasmith
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answered on Mar 10, 2024

Based on the information provided, there are a few important considerations:

1. As an F-1 student on Optional Practical Training (OPT), you are allowed to work in the U.S. as long as the employment is related to your field of study. The work can be for any employer, including an LLC owned...
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1 Answer | Asked in Tax Law, Business Formation, Business Law and International Law for Delaware on
Q: Legal ways to start an US business from a country that has no double taxation treaty with the US and avoid double taxed?

E.g Delaware often mentioned as an offshore location and a business friendly state. Can I avoid being double taxed somehow (legally)? I would gladly pay taxes in the US. If i can't find a solution soon, i have to find another english market, unfortunately.

James L. Arrasmith
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answered on Mar 8, 2024

Starting a business in the US from a country without a double taxation treaty can indeed present challenges, but there are legal pathways to minimize the impact of being taxed in both jurisdictions. Delaware is a popular choice for international business owners due to its business-friendly laws,... View More

1 Answer | Asked in Business Formation, Business Law, Copyright, Intellectual Property and Trademark for Washington on
Q: Can I use the term “Line Life” for tshirts for sale?

I see there is a trade mark for these words. Thank you!

James L. Arrasmith
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answered on Mar 8, 2024

When considering the use of "Line Life" for t-shirts you plan to sell, it's important to be aware of existing trademarks on these words. Trademarks are designed to protect the brand identity of businesses across various products and services. If "Line Life" is trademarked... View More

1 Answer | Asked in Immigration Law and Business Formation for Massachusetts on
Q: I am on OPT as a B.S. in Business. Can I open an LLC to rent & sublease (AirBnB) properties?

I am on an F1 visa, and just got my OPT approved as a B.S. in Business with a major in Marketing. Am I allowed to create an LLC and work for my own company? Currently, I am planning to start an AirBnB arbitrage business. This includes finding properties to sublease, furnishing them, and listing... View More

James L. Arrasmith
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answered on Mar 8, 2024

When on an F1 visa and engaged in Optional Practical Training (OPT), your business activities must relate directly to your major area of study. As a B.S. in Business with a major in Marketing, starting an LLC to engage in property rental and subleasing for AirBnB could be considered relevant to... View More

2 Answers | Asked in Tax Law and Business Formation for Florida on
Q: Hello I live in Pinellas County Florida. I'm looking into starting my on business.

I would like my personal taxes and my business taxes to be seperate. Which entity would I create my business as?

James L. Arrasmith
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answered on Mar 8, 2024

If you're aiming to keep your personal and business taxes separate in Pinellas County, Florida, considering the structure of your business entity is crucial. For your goals, forming a corporation (either a C Corporation or an S Corporation) or a Limited Liability Company (LLC) could be... View More

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1 Answer | Asked in Contracts, Business Formation and Business Law for California on
Q: We are a non-profit booster organization. We are attempting to compel a former treasurer's refusal to return documents.
James L. Arrasmith
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answered on Mar 7, 2024

Under California law, a nonprofit organization has the right to access and retain possession of its official records, including financial documents handled by its treasurer. If a former treasurer is refusing to return such documents, the organization can initially try to resolve the matter through... View More

1 Answer | Asked in Business Formation and Business Law for Utah on
Q: How do you start a self-employed private service provider?

I would like to start teaching cello but not accidentally commit tax fraud.

Wesley Winsor
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Wesley Winsor
answered on Mar 5, 2024

It's great to hear about your interest in teaching cello! To ensure you navigate this new venture without any tax-related issues, it's crucial to meticulously record all your expenses and income. This will not only help you manage your finances better but also simplify your tax filings.... View More

1 Answer | Asked in Business Formation, Business Law, International Law and Securities Law for Mississippi on
Q: I'm a US citizen and I want to trade CFDs any workaround to do this legally? Would an offshore company approach work?

It's important to note that I technically wouldn't be trading it. It would be in a brokerage and then a company would be doing the trades for me, both of which are outside of the USA. So basically can I legally have my money go into CFDs and then the profit go back to me.

James L. Arrasmith
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answered on Mar 1, 2024

Trading Contracts for Difference (CFDs) directly is not permitted for US citizens through domestic firms due to strict regulations set by the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). These regulations aim to protect investors from the... View More

1 Answer | Asked in Business Formation, Education Law and Tax Law for New Jersey on
Q: I am the owner of a private school in NJ. I am considering changing its filing status from an LLC to a 501c3 nonprofit.

Is this possible in NJ? And if so, what are the initial steps that I should be considering?

James L. Arrasmith
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answered on Mar 1, 2024

Here are the key things to consider when changing a private school in New Jersey from an LLC to a 501(c)(3) nonprofit:

- It is possible to make this change in NJ. You would need to dissolve the LLC and then incorporate as a new nonprofit entity.

- To qualify as a 501(c)(3), the...
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1 Answer | Asked in Business Formation and Business Law for California on
Q: I am in Lancaster, CA. I want to start my own business

I will be doing my business out of my home, online. I will not have any inventory, I will not be selling any products, I will have no clients at my house and I will be the only employee. I will offer a service and will charge a finders fee if the client agrees and completes all paperwork. I will... View More

James L. Arrasmith
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answered on Feb 29, 2024

Starting your own business in Lancaster, CA, as a sole proprietor and offering a service online is an exciting venture. To begin, you will need to file for a "Doing Business As" (DBA) if you plan to operate under a name different from your own. This is essential for opening a business... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: I want to start my own business. I live in LA County, California.

I would work from home, I have no inventory or items to sell and I will not have anyone coming to my home. I will be offering a service that can be done mostly online. I think it will be best for me to run my business as a Sole Proprietor and will apply for my DBA. What licenses or forms do I need... View More

James L. Arrasmith
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answered on Feb 29, 2024

Starting your own business in LA County, California, as a sole proprietor with a focus on providing online services is a commendable initiative. Since you're considering operating under a name different from your own, filing for a "Doing Business As" (DBA) is indeed your first step.... View More

1 Answer | Asked in Real Estate Law, Business Formation, Business Law and International Law on
Q: Do I need a permit to offer Airbnb management service to owners?

Hello po

I am Nick from Greece

I have an LLC registered in the US which manages properties by offering short term rental management ( I don't sublease but I just offer a service of customer service)

Is that legal to do also in the Philippines by using the US LLC?... View More

James L. Arrasmith
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answered on Feb 26, 2024

Hello Nick,

Operating a business in the Philippines, including offering Airbnb management services, requires compliance with local regulations and possibly obtaining specific permits or licenses. Even if your LLC is registered in the US, conducting business activities in the Philippines...
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1 Answer | Asked in Business Formation and Business Law for California on
Q: hello if my business license was expired nut now renew. am i able to charge storage fees b4 or once license up todate

i had a car that was a total lost. The insurance company refuse to pay storage fee or any fees other than a tow bill. Due to my business license being expired. My business license has been renew and its up to date.

Can they get away with it.

I can not charge storage fees even... View More

James L. Arrasmith
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answered on Feb 23, 2024

Under California law, the legality of charging storage fees when your business license was expired depends on the specific regulations governing your business sector and local jurisdiction. Generally, operating a business without a valid license can invalidate your right to enforce contracts or... View More

1 Answer | Asked in Banking and Business Formation for Georgia on
Q: LLC - A of O states RA as Authorizor at the bottom. Will this prevent me from opening a business bank account?

Will a bank require that I am the Authorizor at the bottom of the Articles of Organization before I can open an account for the business? Or does Authorizor simply refer to the one authoring the A of O?

James L. Arrasmith
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answered on Feb 23, 2024

The term "Authorizor" on the Articles of Organization typically refers to the individual or entity who is authorized to sign and file the document with the state to establish the LLC. It does not necessarily mean that you must be the one who authored the Articles of Organization in order... View More

1 Answer | Asked in Banking, Business Formation and Business Law for Missouri on
Q: Does my website have to register as a financial institution or anything alike if I operate a cryptocurrency escrow on it
James L. Arrasmith
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answered on Feb 23, 2024

Operating a cryptocurrency escrow service on your website brings you into a complex regulatory landscape that varies significantly by jurisdiction. In many places, such services are considered part of the financial sector and are subject to specific regulatory requirements. These can include... View More

1 Answer | Asked in Tax Law, Business Formation and Business Law for Arizona on
Q: I recently started an LLC for my business late last year. Do I need to file something about the CTA?

My business has no income yet. I'm just getting started doing Web Development and Technology Consultancy. My CPA mentioned I should check and see if the new CTA Law applies to me or not.

James L. Arrasmith
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answered on Feb 22, 2024

As a new LLC owner in Phoenix, AZ, you should be aware that Arizona's new Commercial Transaction Privilege Tax (CTA) law may apply to your business. The CTA law imposes taxes on various business activities, including web development and technology consultancy services. Even if your business... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: LLC State Formation Question - CPR Training

I have a CPR Training center. We provide a service. We have 3 physical locations currently. Covina, CA, St. Louis, MO, and Philadelphia, PA. I am filing taxes this year as a sole proprietor however next year I want to create an LLC. Am I able to create the LLC in a state like Nevada even if my... View More

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answered on Feb 22, 2024

In the United States, it's indeed possible to form an LLC in a state where you don't actively conduct business, and Nevada is a popular choice for many due to its favorable business laws and privacy advantages. If you decide to form your LLC in Nevada, you'll benefit from the... View More

2 Answers | Asked in Banking, Business Formation and Business Law for Virginia on
Q: Do I only need a DBA in the state where my business is located or do I need DBAs in all 50 states and/or counties?

In general, are DBAs only required when market and run a domain under a different name, conduct bank transactions under a different name, or both?

For reference, I am attempting to engage in e-commerce as a sole proprietor under a different name. The business involves selling physical products.

Dominic Paul Lascara
Dominic Paul Lascara
answered on Feb 12, 2024

If you are operating your business under an "assumed" name, "trade" name or a "fictitious" name, you should file the propert fictitious name certificate in every state that you are doing business and you should confirm that your entity is authorized to do business in those states.

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2 Answers | Asked in Banking, Business Formation and Business Law for Virginia on
Q: Do I only need a DBA in the state where my business is located or do I need DBAs in all 50 states and/or counties?

In general, are DBAs only required when market and run a domain under a different name, conduct bank transactions under a different name, or both?

For reference, I am attempting to engage in e-commerce as a sole proprietor under a different name. The business involves selling physical products.

James L. Arrasmith
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answered on Feb 23, 2024

As a sole proprietor engaging in e-commerce under a different name, you typically only need to register a DBA (Doing Business As) in the state where your business is located. This allows you to legally operate your business under a name other than your own. While there are no federal requirements... View More

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1 Answer | Asked in Banking, Business Formation, Business Law and Contracts on
Q: I am telecaller in small finance company,but the owner is DSA agent for banks, I believe he doesn't have DOT OSP licence

The company haven't given me offer letter Or LOJ and after 45days of working didn't pay me my full salary (16k per month) ie Rs.22700 for 46days.

What can I do to get my complete salary, Same thing is done with my 3 collogues, they have been paid zero has salary.

When... View More

James L. Arrasmith
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answered on Feb 5, 2024

Here are a few things you can do in this situation:

1. Check if the company is registered and licensed properly. As a telecaller for a financial company, they need to have the requisite DOT OSP license. If not, their operations may be illegal.

2. Reach out to the other employees in...
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