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California Business Formation Questions & Answers
2 Answers | Asked in Contracts, Business Formation and Business Law for California on
Q: When you do a dba to your incorporated business does it automatically become incorporated also?

We are General Contractor going into business starting a new company we will own 50% and adding it to contractors license as a dba

Shawn R. Jackson
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answered on Nov 19, 2024

The short answer to your "automatically become incorporated" is "no". The longer answer is a combination of ownership, your management agreement, your written agreement with homeowners for your "Home Improvement Contracts" ... and the CSLB issues ... you will want to... View More

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2 Answers | Asked in Banking, Business Formation, Business Law and Consumer Law for California on
Q: do I need a license to practice law? If not, under equal protection, as PRIVATE COUNSEL, am i entitled to a free listing
William John Light
William John Light
answered on Nov 14, 2024

LOL. 1. Yes, you need a license to practice law. 2. Justia is a business. You aren't entitled to anything from it, whether you are an attorney or not. Extremely doubtful Justia will provide a listing to a non-attorney as that would lead to potentially significant liability for it in the... View More

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1 Answer | Asked in Immigration Law, Business Formation and Business Law for California on
Q: LLC Registration with a foreign Co-Founder

I am an Iranian citizen living in Iran, and I want to start a US-based LLC with my colleague, a US citizen who lives in California. I will work remotely as a marketing specialist, and all business activities will be with US clients only, with no connections to Iran.

My colleague would... View More

James L. Arrasmith
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answered on Nov 15, 2024

Due to current U.S. sanctions on Iran, forming an LLC with an Iranian citizen faces significant legal challenges. The Office of Foreign Assets Control (OFAC) maintains comprehensive restrictions on business dealings with Iran and Iranian nationals.

You would need to obtain specific...
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2 Answers | Asked in Business Formation and Business Law for California on
Q: Can minor form LLC all by himself without needing adult at any point of forming LLC?

I know you need adult to help you sign contracts behalf of your LLC but what i wonder is can someome under 18 CREATE LLC?

Robert Kane
Robert Kane
answered on Oct 9, 2024

Please contact the Secretary of States Office.

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1 Answer | Asked in Business Formation, Business Law, Civil Litigation and Tax Law for California on
Q: Can i start a business without being documented in the US ? im an illegal immigrant
James L. Arrasmith
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answered on Oct 1, 2024

Yes, you can start a business in the U.S., even if you're undocumented. There are no specific laws that prevent undocumented immigrants from owning and operating a business. The U.S. tax system allows anyone, regardless of immigration status, to apply for an Individual Taxpayer Identification... View More

1 Answer | Asked in Tax Law, Business Formation and Business Law for California on
Q: What do I need to do with my c-corp after relocating to California from Illinois?

A few years back, I had incorporated a c-corp in Delaware, registered as a foreign entity in Illinois, and had a physical office with employees. Post-COVID, my business became 100% remote. I am currently the only W2 employee on the company’s payroll, with Illinois state taxes being deducted. I... View More

James L. Arrasmith
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answered on Sep 16, 2024

When relocating your C-corp to California, you need to register it as a foreign corporation in California since you are now operating from there. This involves filing specific forms with the California Secretary of State and potentially paying applicable fees. You may also need to withdraw your... View More

1 Answer | Asked in Banking and Business Formation for California on
Q: What is the proper way to initiate Arbitration/ litigation so return of money already paid under an fraud contract.

My wife and her mother went to a car lot for a car, She was successful. The car was purchased in Southern California, our address was in northern California; The first issue we suffered was the fact that the second set of keys given to us didn't go to the car she leased, upon misplacing the... View More

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answered on Sep 15, 2024

To initiate arbitration or litigation to recover money paid under a fraudulent contract, you'll need to follow a few steps to ensure your case is properly handled. Start by gathering all relevant documents, including the contract, payment records, communication with the car dealership, and any... View More

1 Answer | Asked in Business Formation for California on
Q: Selling on marketplace facilitators in California

Are any licences/ permits required to start selling tangible goods on Marketplace Facilitators as an individual in California, provided all sales are of tangible goods and all transanctions are facilitated by the marketplace facilitators platform who is already registered with CDTFA.

James L. Arrasmith
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answered on Sep 12, 2024

In California, if you are selling tangible goods on a marketplace facilitator’s platform, the platform itself is responsible for collecting and remitting sales tax on your behalf. Since the marketplace facilitator is already registered with the California Department of Tax and Fee Administration... View More

3 Answers | Asked in Business Formation for California on
Q: If I am a minor member/owner in a LLC can I sign legally binding contracts.

Contracts refer to Purchase and Sale agreement and Assignment of Contract

Shawn R. Jackson
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answered on Sep 11, 2024

The short answer is ... "it depends" ... you would need AUTHORITY from the LLC, usually within the LLC Operating Agreement and/or approved resolutions ... along with NOTICE to the other LLC members and the other contracting parties.

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1 Answer | Asked in Business Formation for California on
Q: Is there any legal recourse for naming my business the same name as the food we sell? No other words or descriptions?

Example: naming a store Cheese Burgers, or Zombies (we sell Cheese Zombies), or cookies, or salads etc.

James L. Arrasmith
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answered on Aug 16, 2024

You generally have the right to name your business after the product you sell, such as “Cheese Burgers” or “Cookies.” However, there are important considerations. First, you must ensure that the name is not already trademarked or used by another business in your industry. If another company... View More

Q: Does a Nurse Staffing Agency located outside California need to be registered or have a license to transact business?

A Healthcare/Nurse Staffing Agency providing temporary healthcare personnel to different healthcare facilities (Hospitals, Long-Term Care, SNF, etc.)

James L. Arrasmith
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answered on Aug 7, 2024

Under California law, a Nurse Staffing Agency located outside the state generally needs to register to transact business within California. This registration is crucial to comply with the state's business regulations, which ensures that the agency can legally operate and provide services... View More

1 Answer | Asked in Business Formation for California on
Q: I am a CPA and am planning to partner with a non-CPA partnerto start an advisory firm. Can we be an LLC in California?

This firm will only be offering accounting/bookkeeping/contoller and CFO advisory services. No Audit/attest or compilation services

James L. Arrasmith
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answered on Jul 23, 2024

Yes, you can form an LLC in California with a non-CPA partner for the type of advisory firm you are planning. California allows LLCs to offer accounting, bookkeeping, controller, and CFO advisory services as long as they do not include audit, attest, or compilation services. This means you can... View More

3 Answers | Asked in Family Law, Business Law, Business Formation and Divorce for California on
Q: Can my stepmom take part of my business if my dad leaves her and is the one that pulled out the loan to help me fund it?

In short…. My dad being more creditworthy…. Is going to pull out a loan to help me start a business. My stepmom served him with divorce papers and I’m wondering if she would be able to take part of the business as part of their divorce settlement. And what our best course of action would be.

Robert Kane
Robert Kane
answered on Jul 13, 2024

It seems unlikely that your stepmom can take part of your business if my dad leaves her and is the one that pulled out the loan to help me fund it,

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3 Answers | Asked in Business Formation, Business Law, Civil Litigation and Land Use & Zoning for California on
Q: Corporate building and parking lot is private own. We are having a charity event can the city charge a fee for permit?

My work is having a charity event and the city is saying they want to charge the company a fee for traffic flow and for the parking lot being blocked off for car show. But the building and parking lot is private own by corporate. Can the city charge for having an event on the business private... View More

Robert Kane
Robert Kane
answered on Jul 4, 2024

Yes, the city can charge for having an event on the business private property. A car show is well beyond the normal usage for which the property was zoned for.

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1 Answer | Asked in Business Formation and Business Law for California on
Q: Do I need to file a Foriegn LLC in California if I register my startup in Delaware ?

I am just thinking of starting my own company and currently living in California State. As most tech statups are registered in Delware, I was planning to register in Delaware. But since I live in California do I need to register it in california as well ? I will be the only person working for now.... View More

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answered on Jun 30, 2024

To answer this question concisely:

Yes, if you're living and operating your business in California, you'll likely need to register your Delaware LLC as a foreign LLC in California, even if you're the only person working and have no sales or revenue yet.

Key points:...
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1 Answer | Asked in Business Formation, Business Law and Mergers & Acquisitions for California on
Q: Dissolution and closing of a Personal Service C Corp upon the death of sole shareholder & president

A Personal Service C Corp had only one shareholder, who was also the president. Upon the death of the sole shareholder & president, the business is closed and the C Corp needs to be dissolved. The Secretary of the C Corp will sign the Certificate of Dissolution to be filed with the Secretary of... View More

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answered on May 15, 2024

In the case of a Personal Service C Corporation with a single shareholder who was also the president, and upon their death, the corporation needs to be dissolved and closed. Here's a step-by-step guide on how to proceed:

1. Appoint a new director: If the deceased shareholder was the...
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1 Answer | Asked in Business Formation, Business Law and Contracts for California on
Q: How can I change my corporation back to a sole proprietor. I am 100% owner.

I currently am a licensed contractor in the state of California and would like to transfer corporation to a sole proprietor. I want to keep my name the business name I operate under since I have it tattoo on my body

James L. Arrasmith
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answered on Apr 24, 2024

To change your business structure from a corporation to a sole proprietorship in California while keeping your business name, you'll need to follow these steps:

1. Dissolve your corporation by filing a Certificate of Dissolution (Form ELEC STK/NP) with the California Secretary of...
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1 Answer | Asked in Business Formation, Trademark and Intellectual Property for California on
Q: If I am using Dali Llama Yoga for a business name, would there be an issue or conflict with the person Dalai Lama?
James L. Arrasmith
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answered on Apr 12, 2024

There could potentially be some issues with using "Dali Llama Yoga" as a business name in California. While the spelling is slightly different, the name is very similar to the Dalai Lama, the religious leader of Tibetan Buddhism. This similarity could lead to a few potential legal... View More

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.
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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

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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

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