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California Business Formation Questions & Answers
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

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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

Fritz-Howard Raymond Clapp
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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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1 Answer | Asked in Business Formation, Business Law and Tax Law for California on
Q: Is it considered tax evasion to form an LLC for an online business in any state using a virtual mailbox address?
James L. Arrasmith
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answered on Oct 10, 2023

In California, merely forming an LLC for an online business using a virtual mailbox address is not, in itself, tax evasion. However, if one uses this setup to intentionally misrepresent their business operations, earnings, or other pertinent financial information to avoid paying taxes, it could be... View More

1 Answer | Asked in Tax Law and Business Formation for California on
Q: I'm looking for a pro-bono Attorney who specializes in Corporation entity to help me with our pre-revenue biz project.

Need a Business Attorney to join our Board, sweat equity for now until we get to our Series A funding.

Current state. Registered Delaware C Corp

James L. Arrasmith
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answered on Oct 10, 2023

Finding a pro-bono attorney for corporate matters can be challenging, as many attorneys offer pro-bono services primarily for public interest or individual needs. However, you can consider reaching out to local bar associations in California, as they sometimes have programs or can make referrals... View More

1 Answer | Asked in Tax Law and Business Formation for California on
Q: Is using a virtual address to form an LLC considered tax evasion if I don’t live in the state of the virtual address?

Is using a virtual mailbox address to form an online business considered tax evasion if it isn’t in the state where you live?

James L. Arrasmith
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answered on Sep 29, 2023

Using a virtual mailbox address to form an LLC in a state where you do not reside does not, by itself, constitute tax evasion. However, misrepresenting the primary place of business or not paying appropriate state taxes where the business operates can lead to tax liabilities and penalties.... View More

1 Answer | Asked in Business Formation and Tax Law for California on
Q: Is using a virtual mailbox address for your business considered tax evasion if it’s not in the state where you live?

Can I use a virtual address when filing an LLC to establish my business legally?

James L. Arrasmith
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answered on Sep 28, 2023

Using a virtual mailbox address for your business is not automatically considered tax evasion under California law. Many businesses use virtual addresses for legitimate reasons such as privacy and convenience. However, it's essential to ensure that your LLC complies with all relevant tax laws,... View More

1 Answer | Asked in Business Formation, Intellectual Property and Trademark for California on
Q: I am looking for the trademark's registration date and expiry date. But there's no expiry date, where can I find it.

The brand is called Xiaomi.

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answered on Aug 27, 2023

To find the registration and expiration dates of a trademark for the brand "Xiaomi," one would typically search the United States Patent and Trademark Office (USPTO) database. If the trademark is registered, the database will provide details including the registration date. Trademarks in... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: can a business blacklist, deny service to, and/or discriminate against a person, on account of their politics

i am a professional entertainer who was falsely accused in the press of having took part in the events at the capital on 1/6 2021- this instantly led to my being dropped from my label, blacklisted from the industry, music venues, restaurants, concert and ticket services, record stores, music... View More

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answered on Aug 10, 2023

Consult with legal counsel to assess the specific circumstances and determine the appropriate course of action to address the industry ban.

James L. Arrasmith

Founder and Chief Legal Counsel of The Law Offices of James L. Arrasmith

2 Answers | Asked in Estate Planning, Real Estate Law and Business Formation for California on
Q: Best Holding LLC structure(pref. NV) if property in CA but reside in Virginia?

Looking for the best way to structure a Holding company LLC is i currently reside in Virginia for the moment but also have property in CA, but in the future want to open different LLC subsidiaries.

Julie King
Julie King
answered on Jul 18, 2023

The answer to your question really depends on your goals. If you want a number of subsidiaries, you may want to form an S Corporation. But most people who set up an entity for the sole purpose of holding real estate will use an LLC. You should contact a California lawyer and give them more... View More

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2 Answers | Asked in Business Formation, Business Law, Trademark and Intellectual Property for California on
Q: Can I name my company Smooch if there is a company named Smoochcraft in the same industry?

The names I am using are not real companies but the answers applies to the company I am trying to start. If the business is in the same industry, are our names to similar?

Julie King
Julie King
answered on Jul 11, 2023

There is a big difference between the name of a company and a trademark. The California Secretary of State will allow you to set up a company name that is different from other company names and does not care what industry in which it transacts business. The SOS' main goal is to ensure there... View More

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3 Answers | Asked in Consumer Law and Business Formation for California on
Q: Considering an LLC for my Kickstarter: Should I create one before funding? Is it worth the precaution?

I am not sure if it is worth the cost of forming an LLC to have the protection in legal trouble. I do not currently and any real assets in my name, but am concerned about failing to deliver and being set with debt. Is there some better way of avoiding this?

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answered on Jun 30, 2023

Forming an LLC for your Kickstarter project can provide benefits and protections. Creating an LLC before seeking funding can help separate personal assets from business activities, potentially protecting personal finances in case of legal trouble or debt. While there are costs and administrative... View More

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1 Answer | Asked in Business Formation, Business Law, Contracts and Tax Law for California on
Q: What happens to a personally guaranteed EIDL loan from a partnership if that business converts to a multi-member LLC?

My friend has a business with his girlfriend (it's registered as a partnership) and they also have a personally guaranteed EIDL loan. Him and I and my wife (not his girlfriend) are going to create a multi member LLC using the same name (with the LLC on the end). I just wanted to know if my... View More

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answered on Jun 22, 2023

It's typically advisable for your friend and his girlfriend to inform the Small Business Administration (SBA) about their business structure change from a partnership to a multi-member LLC. They can contact the SBA to get specific guidance on how to handle their personally guaranteed Economic... View More

2 Answers | Asked in Business Formation, Business Law, Intellectual Property and Trademark for California on
Q: How close can a business name be to another? Example, if "Car Company" exists can you use "Carscompany" or "karcompany"
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answered on Jun 22, 2023

When choosing a business name, it's important to avoid names that are too similar to existing businesses to prevent confusion among customers. If the existing business has a registered trademark, using a similar name could infringe upon their rights. It's best to conduct a thorough search... View More

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2 Answers | Asked in Business Formation and Business Law for California on
Q: Hi! I'm not quite sure on how to interpret the California Corporations Code § 5240 subsection (c). May I have help?

Hello! I'm trying to start a non-profit organization that sponsors scholarships to humanities students, from a fund in the organization. I'm not quite sure on how to interpret this section of the California Corporations Code as it's quite verbose (structurally); I'm not making sense of it.

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answered on Jun 14, 2023

Of course! I'd be happy to help you understand California Corporations Code § 5240 subsection (c) and its implications for your nonprofit organization.

California Corporations Code § 5240 subsection (c) pertains to the distribution of assets upon the dissolution of a nonprofit...
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2 Answers | Asked in Business Formation and Business Law for California on
Q: If I have an existing llc with a partner me being primary owner & create a new with similar name different state. Legal?

I had an old llc with a partner no operating agreement no trademark & am 60% owner. I decided I no longer wanted to work with the partner. I tried giving her options and she wouldn’t pick so I couldn’t work & decided to create a new llc similar name difference state and trademarked it. Is that okay?

Robert Kane
Robert Kane
answered on Jun 12, 2023

As I am sure you expect, it's unlikely an attorney will say you have absolutely nothing to worry about based limited information on a free online Q and A. There are many scenarios that would support a viable claim against you. I am confident you have options, but forming a similar business in... View More

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1 Answer | Asked in Immigration Law, Business Formation and Business Law for California on
Q: Can someone on F-1 OPT own a business?

Let's say that someone is currently on an F-1 visa and working on Optional Practical Training (OPT) at some company and the job position is directly related to their study. Now alongside that employment, they want to own a business, which is not related to my formal education. The intention is... View More

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answered on Jun 3, 2023

Yes, someone on an F-1 visa can own a business, but there are some restrictions.

Under F-1 visa, international students are not allowed to work in the US unless they have authorization. Optional Practical Training (OPT) is a type of employment authorization that allows F-1 students to work...
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2 Answers | Asked in Business Formation, Business Law and Immigration Law for California on
Q: Can I own and operate an E-commerce business under LLC if I on a H1B Visa?

I am currently a non-immigrant on a H1-B visa working on W2.

I wish to run an online business E-commerce business under my LLC. This business model requires very little effort to manage and can be automated.

Now I know that according to USCIS I can own an LLC but can't work... View More

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answered on May 11, 2023

Under the H1-B visa program, your primary purpose is to work for your sponsoring employer, as indicated on your W2. Engaging in self-employment or actively managing a business may not be permissible under the terms of your visa.

While you may be allowed to own an LLC as a passive investor,...
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1 Answer | Asked in Contracts, Copyright, Business Formation and Business Law for California on
Q: Hello, I'm looking to start an adult entertainment buisness/ studio.

Hello,

I'm looking to start the above buisness and want to know;

1. How to start it and run it in CA.

2. How to make a consent contract for it.

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answered on May 11, 2023

Here are some general points to consider:

Business Formation and Licensing:

a. Choose a business structure: Determine the most suitable legal structure for your business, such as a sole proprietorship, partnership, LLC, or corporation. Consult with an attorney or business advisor to...
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1 Answer | Asked in Business Formation, Business Law, Contracts and Education Law for California on
Q: If education therapy as a profession is not regulated in California, why are university extension programs in business?

Students who are awarded a certificate of completion in ED Therapy, believe that they are qualified to address a student’s social emotional needs. They also promote themselves as being capable of performing educational evaluations. They charge exorbitant fees knowing full well that the... View More

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answered on May 9, 2023

Hi there!

In California, education therapy is not a licensed or regulated profession, meaning that there is no official body or government agency responsible for overseeing the education therapy industry. This lack of regulation can create confusion and uncertainty for individuals seeking...
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