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California Business Formation Questions & Answers
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 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 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 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

James L. Arrasmith
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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

1 Answer | Asked in Business Formation and Business Law for California on
Q: Will a parent LLC in NM for a subsidiary in CA need to register as a foreign entity CA if I live in CA doing eCommerce

If a California subsidiary is registered by a parent company in New Mexico and conducts business within California, does the parent company, based in New Mexico, also qualify as 'doing business in California'? Consequently, would it be necessary for the New Mexico parent company to... View More

James L. Arrasmith
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answered on Feb 1, 2024

In California, if your New Mexico parent company has a subsidiary that conducts business within the state, it may trigger the requirement to register as a foreign entity in California. Even if you operate the subsidiary primarily for eCommerce and live in California, the fact that your parent... View More

1 Answer | Asked in Business Formation, Business Law and Gov & Administrative Law for California on
Q: What is the California Code Business and Professions Code for Insurance Agents to file for an Article of Incorporation?
James L. Arrasmith
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answered on Jan 23, 2024

Under California law, insurance agents who wish to form a corporation must comply with specific provisions in the California Insurance Code, in addition to the general requirements for forming a corporation under the California Corporations Code. The specific section of the Business and Professions... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: I want to start a business customizing PlayStation controllers and then selling them.

I would buy the controllers from an authorized Sony retailer, customize them, and then sell them online. Am I breaking any laws by doing this?

James L. Arrasmith
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answered on Jan 16, 2024

Starting a business customizing PlayStation controllers and then selling them is generally legal, but there are a few important legal considerations to keep in mind. First, when you buy products from an authorized retailer and modify them, you must ensure that your customization process... View More

2 Answers | Asked in Business Formation and Business Law for California on
Q: Can I buy a franchise business in my personal name in the state of California?

My foreign entity is in the process of being registered in CA but will take some time.

Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Jan 11, 2024

You should be able to acquire the franchise in your personal capacity, then assign it to the company when it is qualified, but the franchisor must understand and agree that you intend to assign the franchise to your company. The company will have to agree to the obligations to the franchisor in... View More

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2 Answers | Asked in Business Formation and Business Law for California on
Q: Can I buy a franchise business in my personal name in the state of California?

My foreign entity is in the process of being registered in CA but will take some time.

James L. Arrasmith
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answered on Jan 11, 2024

In California, you can buy a franchise business in your personal name. This is possible even if your foreign entity is still in the process of being registered. However, conducting business under your personal name means you will be personally liable for all aspects of the business. This includes... View More

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Q: What kind of licenses are required to form a PMC (private military contracting) company?

I am dabbling with the idea of forming a PMC offering security services locally and for government contracts but while I'm well aware what the day to day takes, I am wondering what detailed licenses and paperwork I would need to get started forming a business in that direction to ensure I am... View More

James L. Arrasmith
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answered on Jan 10, 2024

Forming a Private Military Contracting (PMC) company involves several specific legal requirements beyond standard business formation procedures. Firstly, you need to obtain a business license in the state where you plan to operate. In California, this would involve registering with the California... View More

2 Answers | Asked in Business Formation, Business Law, Civil Litigation and Contracts for California on
Q: We are currently under receivership and the receiver is running up extremely high costs for the business.

The receiver was also appointed with a large conflict of interest in the case

James L. Arrasmith
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answered on Jan 4, 2024

In California, if a receiver appointed to a business is incurring high costs that seem unreasonable, or if there's a conflict of interest, you have options to address these concerns.

First, it's important to review the court order that appointed the receiver to understand the...
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1 Answer | Asked in Business Formation, Civil Litigation, Trademark and Intellectual Property for California on
Q: Why is the same term that describes a racial identity used as a trademark for food and non-food items?

Alot of so called black Americans have discovered African American Inc. and are confused, offended,and fearful, about what that could possibly mean for them. Since the US has a history of not veiwing so called black Americans as humans, please clarify if this company views or promotes African... View More

James L. Arrasmith
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answered on Dec 3, 2023

The use of the term "African American" as a trademark for a company, especially for food and non-food items, can indeed be concerning and potentially offensive. The term "African American" is primarily a racial identity, and its use in commercial contexts should be approached... View More

1 Answer | Asked in Banking, Business Formation, Immigration Law and International Law for California on
Q: Immigration law: I am a Protected Person with an approved case from the court waiting for my PR.

I am starting an import-export business and I am wondering would having business with my home country cause any issues with my residency here in Canada. Traveling to my home country is by no means safe for me, however, this business does not require my physical presence in Iran and I can conduct... View More

James L. Arrasmith
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answered on Nov 7, 2023

Engaging in business with your home country, where you are recognized as a Protected Person, should not inherently affect your residency status in Canada. However, it's crucial to ensure that this business activity does not contradict any of the conditions of your protection status.... View More

2 Answers | Asked in Business Formation, Business Law, Civil Litigation and Family Law for California on
Q: my wife made it where our money from our business goes to an account that only she has access to. what can i do?

We have an air bnb, and out of spite she has went and switched the direct deposit account from our joint account to an account in her name that only she has access to. What can i do? After trying to reason, she still will not switch the accounts back.

James L. Arrasmith
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answered on Nov 6, 2023

In California, if both spouses have an equal interest in a business operated by either or both, the revenue from that business would generally be considered community property. If your wife has redirected funds without your consent, you might consider sending her a formal written demand, citing the... View More

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3 Answers | Asked in Business Formation for California on
Q: In short, questions regarding affiliate marketing for a California LLC.

Hi, in California. I plan on opening an LLC for affiliate marketing purposes.

1. Does my LLC name need to match my website names that are for affiliate marketing purposes? (two different websites for two different affiliate marketing campaigns, clothing and technology).

2. Do I have... View More

Shawn R. Jackson
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answered on Oct 24, 2023

Well, you have about five strands of law that interact based upon the facts/scenarios you have presented ... and a conversation ... within a free initial video call with one or two business development attorneys ... would be your next best step ... the answer to your question will depend upon... View More

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3 Answers | Asked in Business Formation for California on
Q: In short, questions regarding affiliate marketing for a California LLC.

Hi, in California. I plan on opening an LLC for affiliate marketing purposes.

1. Does my LLC name need to match my website names that are for affiliate marketing purposes? (two different websites for two different affiliate marketing campaigns, clothing and technology).

2. Do I have... View More

Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Oct 24, 2023

The LLC name does not need to match the web domain names. Neither must you record fictitious name statements for the specific sites. It is true that fictitious name statements recorded with counties in California are publicly available, but not of concern if you are not recording any. Whether you... View More

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3 Answers | Asked in Business Formation for California on
Q: In short, questions regarding affiliate marketing for a California LLC.

Hi, in California. I plan on opening an LLC for affiliate marketing purposes.

1. Does my LLC name need to match my website names that are for affiliate marketing purposes? (two different websites for two different affiliate marketing campaigns, clothing and technology).

2. Do I have... View More

James L. Arrasmith
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answered on Oct 24, 2023

Here's a concise response to your questions:

1. No, your LLC name does not need to match your website names for affiliate marketing purposes.

2. You are not required to register your websites as DBAs to legally receive income from affiliate marketing. However, if you want to do...
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5 Answers | Asked in Business Formation, Trademark and Intellectual Property for California on
Q: Hi, to whom it may concern, i would like for file a trademark for my business, need help

i want to know if i can file a trademark for one particular item for sale on my website page

James L. Arrasmith
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answered on Oct 14, 2023

Federally, through the United States Patent and Trademark Office (USPTO), you can file a trademark for a specific item or product you sell. The key is to ensure that the item is distinctive and not merely descriptive of the product.

Before filing, it's essential to conduct a...
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5 Answers | Asked in Business Formation, Trademark and Intellectual Property for California on
Q: Hi, to whom it may concern, i would like for file a trademark for my business, need help

i want to know if i can file a trademark for one particular item for sale on my website page

Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Oct 14, 2023

If you are using the mark to identify you as the source of goods in commerce, the mark is capable of being registered as a trademark. It would be prudent to research whether the mark has been used previously by another supplier of similar goods before adopting the mark and applying for registration

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