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Business Formation Questions & Answers
3 Answers | Asked in Business Formation, Business Law and Tax Law for California on
Q: Do I have to pay the CA franchise and file annual income tax for a newly formed single member LLC with no income?

Hello

I created a new LLC last July and I'm the only member.

So far the LLC has not been operative and has generated no revenue.

Do I need to file an income Tax return or pay the $800 California Franchisee tax?

Thank you.

Julie King
Julie King answered on May 17, 2021

Unfortunately , yes, you have to pay that franchise tax regardless of whether your LLC is active or inactive. So long as the LLC is in existence, you must pay the annual tax. Some people make the mistake of only paying the tax when they earn an income, which causes the LLC to go into "FTB... Read more »

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1 Answer | Asked in Business Formation for Maryland on
Q: In Maryland, can a close corp be amended or corrected to be a stock corp

Rocketlawyer.com set up my business as a close corp (their error) and they sent an amendment to the state of Maryland to change it to a stock corporation. The state of MD accepted the amendment but it still says "close" on their website. So is it possible to change a close corp. to a... Read more »

Mark Oakley
Mark Oakley answered on May 13, 2021

Electing "close corporation" status does not alter the fact that a close corporation is also a "stock" corporation, as you put it. The benefit of electing "close" status is that a smaller corporation with fewer stockholders can maintain corporate status and management... Read more »

Q: I need help forming a nonprofit company. I would like to sell gift boxes. I need help knowing the ins and outs of this.

I know many nonprofit companies that sell products/services and make money they don’t help a community at all. I would sell gift boxes and make a profit and help low income/foster care kids. I need help knowing what to do and how to set this organization up. I live in Florida. But any advice on... Read more »

Linda Liang
Linda Liang answered on May 10, 2021

This is not just one question. This is a set of questions, which includes a) how to incorporate; b) how to receive non-profit status ; c) how to maintain a non-profit status. It is not easy to answer in a short form. You should start by incorporating and proceed to schedule a consultation with an... Read more »

1 Answer | Asked in Business Formation, Business Law and Copyright for California on
Q: How do I get my name secured on all social platforms when I own the main domain for the name and do business as it?

I would like to get my own name as a social media account on the 2 remaining platforms where someone has created ghost accounts to hold the name and I am unable to clame it for myself.

Marcos Garciaacosta
Marcos Garciaacosta answered on May 7, 2021

Unfortunately it is a first come first served basis so you may be out of luck.

Consult with an attorney to see if you have some options.

Maybe if you have a trademark registration you could use it to get some of the names back, but may not be an easy or cheap proposition.

1 Answer | Asked in Business Formation for Florida on
Q: I just started a mobile bartending business LLC. Which type of business license do I need to obtain in the state of Fl
Terrence H Thorgaard
Terrence H Thorgaard answered on May 7, 2021

You probably will need a liquor license. Contact the the Florida Department of Business and Professional

Regulation, Division of Alcoholic Beverages and Tobacco (DABT).

1 Answer | Asked in Business Formation and Business Law for California on
Q: What is the appropriate business structure in California that can provide PT, OT, ST services?
Julie King
Julie King answered on May 6, 2021

It likely needs to be a professional corporation, but it can still be taxed as either a C corporation or an S corporation.

4 Answers | Asked in Business Formation and Business Law for Florida on
Q: Needs a Professional to help me register my LLC in Florida

Please, I am looking for an expert who can help me register my LLC with the state of Florida

Evelyn Suero
Evelyn Suero answered on Apr 27, 2021

Business lawyers in Florida can assist you with registration of your LLC in Florida.

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4 Answers | Asked in Legal Malpractice, Employment Law, Business Formation and Business Law for California on
Q: Hired as an independent contractor, but now owner claims that I was a partner after trying to receive payment. Legal?

I was hired by company to run Tournament events. The company wants to contract me to run tournamemt events. With work product created, I provided the company with this service. After creating an FBN and EIN for the sole purpose of getting paid for services I provided, I asked for payment by giving... Read more »

William John Light
William John Light answered on Apr 25, 2021

You are free to sue for your fees as an independent contractor, if that is what you were. Even as an independent contractor, if you created intellectual property during the course of those duties, that property would likely belong to the person who contracted with you to create it.

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1 Answer | Asked in Consumer Law, Business Formation and Business Law for California on
Q: I cashed my stimulas check at Marin Check Cashing in San Rafael CA. They charged me $43.81 fee. IS this legal in CA?
Daniel Timothy LeBel
Daniel Timothy LeBel answered on Apr 24, 2021

The answer, as with most questions asked of lawyers online, is: "it depends" and "message boards are no substitute for legal advice." Here, there just aren't enough facts to provide a complete legal analysis. However, if your check was the standard $1,400 stimulus... Read more »

1 Answer | Asked in Business Formation for Florida on
Q: Forming a LLC in Florida to buy 2nd home, can I list condo address as the place of business before we take ownership?

We have not closed on second home condo. We want the condo to be owned by me and my wife's new LLC we are forming in Florida. On the LLC application, it asks for Place of business in Florida. Can we list the condo address as the Place of business before we technically own the condo? If we do,... Read more »

Keith Kanouse
Keith Kanouse answered on Apr 23, 2021

I would initially use your first home as the place of business and then amend the Articles of Organization once you have closed on the second condo.

1 Answer | Asked in Business Formation, Business Law, Civil Rights and Environmental for Texas on
Q: I told a friend my credit scores he said he can get us a $2mil loan. What legal actions can I do?

He's in real-estate and said he can get me in as well using my credit scores.

Tim Akpinar
Tim Akpinar answered on Apr 21, 2021

A Texas attorney could advise best, but your question remains open for two weeks. As a general matter, a court might look at what you lost by relying on your friend's assurance - a loan that it looks like you would not have qualified for anyway. It sounds like your friend might have made a... Read more »

2 Answers | Asked in Contracts, Business Formation and Business Law for California on
Q: How to obtain a brick-and-mortar physical address in California?

We need a brick-and-mortar address for a business set up by us in the US (there might be more businesses in the future), whose CEO is working from home (currently in Ohio but soon to be in California).

For the new company, we tried already tried to register But the Secretary of State’s... Read more »

Julie King
Julie King answered on Apr 20, 2021

You may be making this more complicated than it needs to be. Why can't you use your home address? Yes, it will be a public record, but it works. There are many solutions to this issue without you having to lease expensive office space that you will not be using. Best wishes!

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2 Answers | Asked in Contracts, Business Formation and Business Law for California on
Q: How to obtain a brick-and-mortar physical address in California?

We need a brick-and-mortar address for a business set up by us in the US (there might be more businesses in the future), whose CEO is working from home (currently in Ohio but soon to be in California).

For the new company, we tried already tried to register But the Secretary of State’s... Read more »

Robert Philip Cogan
Robert Philip Cogan answered on Apr 20, 2021

There are many ways an attorney can solve this problem for a business that is setting up in the US. I have done so many times. You can contact an attorney directly. However, Justia does not permit attorneys to enter into engagements through the Q&A page.

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1 Answer | Asked in Business Formation, Identity Theft and Landlord - Tenant for Florida on
Q: How can I find an attorney that specializes in providing privacy to normal street Joes that have a w2 job & a house?

I just want to minimize my digital footprint exposed to the public by municipalities and commercial data brokers.

Bruce Alexander Minnick
Bruce Alexander Minnick answered on Apr 14, 2021

To the best of my knowledge, no such attorneys exist.

IMO, what you want to do is not possible in this nation of laws that intentionally encourage unlimited commercial advertising with its corresponding egregious invasion of privacy coupled with complete "transparency" of...
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1 Answer | Asked in Business Formation and Business Law for Florida on
Q: Back in 2005, how would a Florida general partnership transfer its assets when it changes to a corporation?

If a Florida general partnership incorporated in 2005 to become an S-corp, what steps would they have had to take in order to properly transfer the partnership's assets to the corporation? Is there a Florida statute regarding how this is done or are assets just automatically transferred? Does... Read more »

Keith Kanouse
Keith Kanouse answered on Apr 13, 2021

You have to prepare a Bill of Sale and other transfer documents depending on the nature of the assets from the GP to the Corp. This would be the capital contribution of each partner as each partner would become a shareholder in proportionate to his or her partnership percentage. You would also... Read more »

1 Answer | Asked in Business Formation for Texas on
Q: If I form a professional corporation in Texas can I use an assumed name and attach PA at the end?

I am looking to form a new corporation but I want to be able to use the designator of PA on my assumed name not necessarily on my official filed business name. Is that an option? I am a physician.

Teri A. Walter
Teri A. Walter answered on Apr 12, 2021

No. A "PA" means professional association. A “professional association” is defined as an association, as distinguished from a partnership or a corporation, that is formed for the purpose of providing the professional service provided by: doctors of medicine, doctors of osteopathy,... Read more »

1 Answer | Asked in Business Formation, Business Law and Contracts for Pennsylvania on
Q: how to legally make contracts and what to put in them.

I want starting a business with someone else using my idea/system that i made, I want to share the business 50/50, how can I make this legal, as well as make sure they don't steal the information and use it somewhere else?

Michael Cherewka
Michael Cherewka answered on Apr 8, 2021

You have a number of questions here that you really need to sit down with a business attorney and sort through your best options. First of all I never recommend a 50/50 split of ownership because it can lead to deadlocks at a number of levels in the business. As far as your idea/system, that... Read more »

2 Answers | Asked in Business Formation and Trademark on
Q: hi! if i want to buy this trademark how do i move forward?
Evelyn Suero
Evelyn Suero answered on Apr 6, 2021

If you wish to purchase or license a trademark, you may contact the owner or the attorney listed on the trademark registration. On the other hand, if you are referring to registering your own trademark, you may begin a registration application with your state or with the U.S. Patent & Trademark... Read more »

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1 Answer | Asked in Business Formation for New York on
Q: I am interested in starting an e-commerce business and I am in Niagara County, NYS.

I am starting an online metaphysical shop selling crystals, incense burners and other merchandise. I’m wondering what forms I need to fill out to create a business name, if I should go sole proprietor or LLC, are there any resellers permits I need? And any other information that might help me.... Read more »

Toshinori Isoai
Toshinori Isoai answered on Apr 2, 2021

It appears that you are going to start your own business. Answers to many, if not most, of our preliminary questions can be found online. Your entrepreneurial commitment may require a good amount of your time for research and verification of information.

1 Answer | Asked in Business Formation for Colorado on
Q: How to move a Nevada LLC to Colorado? I want to preserve the company history and EIN but I don't want in Nevada anymore.

I have a Nevada LLC and I want to move it to Colorado where I now live. I want to preserve the company history, EIN, etc. so not start a new LLC but just migrate it to a new state. What's the best way to do this? I heard creating a new LLC in Colorado and merging the Nevada one into it, but... Read more »

D. Mathew Blackburn
D. Mathew Blackburn answered on Mar 30, 2021

Yes.

You can create a new CO LLC and have that LLC acquire the NV LLC. Then merge the two with the CO LLC surviving.

Or

File a foreign registration in CO for the NV LLC. Then convert the CO foreign LLC to a domestic LLC.

Dissolve the NV LLC.

That moves...
Read more »

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