Business Formation Questions & Answers

Q: I heard that a sole proprietor just files personal taxes, is that right?

1 Answer | Asked in Business Formation for Florida on
Answered on Dec 8, 2018
Terrence H Thorgaard's answer
Personal income tax return, rather than an income tax return for a partnership or corporation? Of course.

Q: If a nonprofit corporation name has not been renewed, can someone else make a nonprofit corporation under the same name?

1 Answer | Asked in Business Formation for New Jersey on
Answered on Dec 8, 2018
Leonard R. Boyer's answer
Yes, they would be able to, but it is not likely. So, I suggest that you renew it now.

Q: Can I still hire an employee as a sole proprietor?

1 Answer | Asked in Business Formation for New York on
Answered on Dec 7, 2018
Michael David Siegel's answer
Sure, but all rules governing employment apply, like withholding, workmans' comp., etc.

Q: I was just wondering if I have a case. I feel like I was done wrong and unfair. Can I do anything?

1 Answer | Asked in Business Formation and Business Law for Colorado on
Answered on Dec 4, 2018
Ashley Dean Powell's answer
There may be potential claims here that you could have pursued. As you may well know, most civil claims/disputes like this have a deadline by which the claim must be brought in court (a "statute of limitations"). Given that the business was started 12 years ago and the relationship appears to have failed (you walked away) about 8 years ago, you may have lost your opportunity to sue for these claims. Presumably, most of the wrongdoing occurred before and leading up to you leaving 8 years ago,...

Q: I want to set up business of marijuana cookies in Northern Virginia and Washington, DC

1 Answer | Asked in Business Formation and Business Law for District of Columbia on
Answered on Nov 29, 2018
Bernard Crane's answer
I hope you like the color orange. You might be wearing it a lot.

In DC marijuana has recently been legalized, but ONLY for personal use. In DC if you are over 21 you can purchase, grow or possess up to two ounces of marijuana for your own use. You can transfer up to one ounce of marijuana to another person who is over 21, as long as it is a genuine gift, and is not being transferred for money or any other remuneration. The DC police will look beyond sham "gift" transactions. For...

Q: Is it possible to negotiate out of a franchise agreement - I already put money down, but can't pay the rest.

1 Answer | Asked in Business Formation for California on
Answered on Nov 25, 2018
N. Munro Merrick's answer
Basic fact: You can negotiate anything! Your franchise agreement probably has a provision for early termination, including probably a liquidated damages clause. That would require you to make a payment to get out of the deal, depending on you are in the process. A liquidated damages clause ins based on the assumption that the money damages are hard to calculate, and that they discussed that clause with you before you signed. I think you will need a lawyer to examine the franchise agreement.

Q: A company is stating they own the color ‘blue’ in all shades and are threatening people using that color. Is this right?

1 Answer | Asked in Business Formation, Business Law and Contracts on
Answered on Nov 25, 2018
Timur Akpinar's answer
If you additionally posted the question under trademarks, attorneys who practice in that area could pick it up.

Tim Akpinar

Q: Do I have control over employment hiring if I become a franchisee?

1 Answer | Asked in Business Formation for New York on
Answered on Nov 18, 2018
Michael David Siegel's answer
Depends on your agreement.

Q: If an LLC run by 2 partners has no employees, what would their workers compensation requirements be?

1 Answer | Asked in Business Formation and Workers' Compensation for Pennsylvania on
Answered on Nov 14, 2018
Timothy Belt's answer
If there are truly no employees, workers' compensation insurance may not be necessary. However, if anyone works for the company you may want to have the relationship reviewed by an employment attorney to make sure it isn't an employer/employee relationship.

Q: I was a Director for a national company. We sold to GrubHub for millions on a cash deal. I have a compant idea.

1 Answer | Asked in Business Formation, Contracts, Copyright and Intellectual Property on
Answered on Nov 14, 2018
Griffin Klema's answer
Protecting your idea depends on what it is. It could be patentable. It could be kept confidential as a trade secret. Or it could be copyrighted (e.g. computer code). It all depends on what it is you're trying to protect. If you are serious about investing in your business, expect to budget several thousand dollars exploring how best to protect your intellectual property with a lawyer who has broad intellectual property experience so that all possible forms of IP can be explored concurrently....

Q: We are thinking of opening a dog grooming business in Florida - what kind of license will we need?

1 Answer | Asked in Business Formation for Florida on
Answered on Nov 13, 2018
Anda Malescu's answer
Depending on your county you may need to get a business or occupational license, pet grooming license, or any other local license.

Q: What does "Null & Void" mean? Does that absolve both parties of the lease and if so would I be liable for rest of year?

1 Answer | Asked in Business Formation, Real Estate Law and Landlord - Tenant for Oklahoma on
Answered on Nov 12, 2018
Doak Willis' answer
That would mean the contract has become inoperable due to a term thue each party being released from the contract.

Q: I started my own business with a partner. She wants to back out and no longer be o co owner. How do I remove her in TN?

2 Answers | Asked in Business Formation and Business Law for Tennessee on
Answered on Nov 12, 2018
Frank J. Steiner's answer
You must file the appropriate paperwork with the Secretary of State.

Q: Hi my company in Japan is thinking about establishing a rep office in CA. Wondering if we need to pay tax in this case?

1 Answer | Asked in Business Formation, Business Law and Tax Law for California on
Answered on Nov 9, 2018
Paul Martin Vargas' answer
Hi. The company would have to register with California as a foreign entity (foreign means entities outside of California, not just the U.S.). As a result, $800 minimum Franchise Tax to California per year would be due. Also, any activity conducted in California will result in income tax liability for both California and the IRS. There may be offsets due to foreign tax paid and exclusions, but now I'm getting outside the scope of this question. I hope this helps.


1 Answer | Asked in Business Formation, Civil Litigation, Consumer Law and Criminal Law for California on
Answered on Oct 30, 2018
Dale S. Gribow's answer
google fraud lawyers in DC not california.............maybe put in Fraud/Georgetown Univ

Q: If I get a loan, do I need a promissory note too?

1 Answer | Asked in Business Formation for Illinois on
Answered on Oct 26, 2018
T. J. Jesky's answer
You can obtain a loan without any paperwork. For example, a co-worker asks to borrow $20 until next Friday. You make the loan and the co-worker pays you back next Friday. No worries. However, it is always a good idea to have some paperwork that documents what took place and what is expected.

Although a promissory note is not required, the person loaning the money will want some type of assurances that the loan will be paid-off. The promissory note, offers some degree of protection...

Q: Dissolving the partnership

2 Answers | Asked in Business Formation and Business Law for Maryland on
Answered on Oct 25, 2018
Mark Oakley's answer
Because you have no written operating agreement, your rights are governed by statute as they relate to your ownership interests, rights and possible dissolution of the LLC. Separately, the LLC may have a civil cause of action against the one owner relating to usurpation of Company business opportunity, but the facts for that action are unclear. You should consult a lawyer about your options. Forcing the one owner out without an agreement with him will more than likely result in dissolution of...

Q: ISO: business/tax lawyer

1 Answer | Asked in Tax Law, Business Formation and Business Law for Colorado on
Answered on Oct 20, 2018
D. Mathew Blackburn's answer
Tax is not restricted to only attorneys that are licensed in the state. I have cases in about 10-11 different states. I'd have to go count them to be sure.

A Colorado attorney can help you with this issue.

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