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Business Formation Questions & Answers
1 Answer | Asked in Business Formation and Business Law for Alabama on
Q: Do Alabama non-profit principal addresses have to be in the state?

I am forming a non-profit as a student in Alabama. I live in Michigan and so I don't have an address here. We recruited a registered agent service to be compliant for the state, but we don't have a principal address in the state of Alabama. Could I use my home address?

T. Augustus Claus
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answered on Sep 18, 2023

In Alabama, nonprofit organizations are typically required to have a registered agent who has a physical address within the state. This registered agent is responsible for receiving legal documents and official notices on behalf of the nonprofit. However, the principal address of the nonprofit... View More

1 Answer | Asked in Business Formation and Business Law for Florida on
Q: Will Error and Omissions insurance cover subsidiary companies if put under the holding companies name?

I am currently starting a notary business to work with my local title companies. I have future plans to start a bookkeeping business as well. I thought about starting a holding company and running the bookkeeping and notary business as subsidiary companies. If I purchase Errors and Omissions... View More

John Michael Frick
John Michael Frick
answered on Sep 17, 2023

It depends on the policy, but yes it can. Be very clear when applying for the policy that you want it to cover affiliates of the named insured and their employees and officers.

1 Answer | Asked in Tax Law and Business Formation for Texas on
Q: Can I register an LLC and deduct expenses if no revenue comes from it?

There is a potential part-time consulting job that would require software for the next round of the pitch. Also, I am spending thousands in due diligence on a potential private investment. I look to do more of these kinds of deals even if these don't work. If I register an LLC, can I deduct... View More

James L. Arrasmith
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answered on Sep 14, 2023

Yes, you can generally register an LLC and deduct business expenses, even if no revenue is generated immediately. The IRS allows deductions for ordinary and necessary expenses incurred while actively pursuing a business, which includes startup and operational costs. However, it's crucial to... View More

1 Answer | Asked in Business Formation, Business Law, Contracts, Tax Law and Estate Planning for Washington on
Q: My dying mother wants to leave her art business to me, she wants me to continue sell her branded art for her

What must I do legally?

She wants me to continue on her brand and artwork selling.

James L. Arrasmith
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answered on Sep 14, 2023

To legally handle your mother's request, you should:

1. Ensure she has a valid and comprehensive will or trust that clearly outlines her wishes for the art business's succession.

2. Work with an attorney experienced in estate planning to facilitate the transfer of assets...
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1 Answer | Asked in Business Formation, Tax Law and Business Law on
Q: Planning to register my home based online futures trading as an LLC. Does it matter in which state I register the LLC?

Trading is my full time occupation. I am a U.S. citizen living abroad all year, however I maintain a driver's license in Washington State.

James L. Arrasmith
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answered on Sep 14, 2023

Selecting the state in which to register your LLC will depend on various factors, including your specific business needs and preferences. Since you maintain a driver's license in Washington State, you may consider registering the LLC there for convenience. However, you could also explore other... View More

1 Answer | Asked in Divorce, Family Law and Business Formation for Texas on
Q: If an LLC formed before marriage but initial capital investment made after marriage, is the LLC interest separate or com

LLC was formed with SOS a couple weeks before marriage, but capital investment ($1000) was made after wedding, with community funds. How would the LLC interest be classified in Texas family law?

John Michael Frick
John Michael Frick
answered on Sep 13, 2023

Although I doubt there is any caselaw on this precise question, my initial impression is that under the doctrine of inception of title, the LLC will most likely be characterized as separate property.

But an argument can be made it is community property if community funds were used as the...
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2 Answers | Asked in Business Formation on
Q: Can a sole proprietor be a founder of LLC being exactly a sole proprietor, not an individual?
T. Augustus Claus
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answered on Sep 11, 2023

Yes, a sole proprietor can be the founder of an LLC (Limited Liability Company). An LLC is a flexible business structure that allows for single-member ownership, making it suitable for sole proprietors who want to separate their personal assets from their business activities while maintaining a... View More

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1 Answer | Asked in Copyright, Business Formation, Trademark and Intellectual Property for Texas on
Q: Hi! I have a question about trademarks for clothing brands and similar ideas that other people have now started

I started working on my brand Ghosted in July, I used Canva fonts and everything for the logo and worked long and hard and got samples and on 8/25 I ordered my first order of 360 units. I own the LLC Ghosted, have the trademark filed for Ghosted for apparel, and this morning I also filed a... View More

James L. Arrasmith
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answered on Sep 11, 2023

Given your description, it appears you have taken significant steps to legally protect your brand, including forming an LLC and filing for trademark protections for both your brand name and logo. In trademark law, the key issue often revolves around who used the mark first in commerce; since you... View More

2 Answers | Asked in Business Formation for Florida on
Q: Hello, can I from an LLC in Delaware as a Florida resident?
Evelyn Suero
Evelyn Suero
answered on Sep 10, 2023

Yes you can form a Delaware LLC while residing in Florida.

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2 Answers | Asked in Criminal Law and Business Formation for New York on
Q: Is there any responsibility for encouraging people to write fake positive reviews and invent their own work experience?

Is there any responsibility for encouraging people to write fake positive reviews and invent their own work experience? All this was said by a person live.

Tim Akpinar
Tim Akpinar
answered on Sep 24, 2023

Addendum - If the work experience involves certain positions that are strictly regulated by the government and the employment involves the safety and well-being of others (pilots, healthcare workers, commercial mariners, etc.) and the inventing of work experience is along the lines of inventing... View More

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1 Answer | Asked in Business Formation, Business Law and Trademark on
Q: Can I name my fine jewelry business Coco Gold or does that infringe on Coco Chanels trademark? Both are in luxury sector
Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Sep 5, 2023

Any use of COCO in the markets for apparel, jewelry or cosmetics will most certainly be challenged by Chanel, Inc., which maintains registrations for its famous marks and aggressively enforces them.

1 Answer | Asked in Business Formation, Contracts and Consumer Law for Minnesota on
Q: We have a restaurant that has a party room that we want to convert into commercial retail in mn.

The city says we HAVE to have a bathroom accessible to the public, is this true? There is a public restroom in the restaurant. The customers can exit the retail store to the restaurant and technically use it there?

Robert Kane
Robert Kane
answered on Aug 30, 2023

I don't believe a retail store is required to have a public restroom. Who told you that it does? The "city" could mean various things or people.

1 Answer | Asked in Business Formation, Business Law and International Law for Texas on
Q: Good morning! I have a small business which mainly operates online here in Texas. I have a DBA and a TX sales tax permit

But coming this fall we are moving back to our home country (Philippines). I do reselling of printed items, my suppliers are US based as well as all my costumers. I wish to still continue by business since I can still manage it even if I am abroad. What other permits I need to operate my business... View More

James L. Arrasmith
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answered on Aug 29, 2023

Since you're planning to operate your Texas-based online business from the Philippines, you'll need to maintain your Texas sales and use tax permit and DBA, but you should also consult tax professionals regarding any applicable Philippine business permits and tax obligations. U.S. federal... View More

2 Answers | Asked in Business Formation, Civil Litigation and Collections for Georgia on
Q: A promissory not that hasn’t been paid was due 7/21/2020 what can I do
T. Augustus Claus
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answered on Aug 28, 2023

If you have a promissory note that was due on 7/21/2020 and has not been paid, you have several options to consider. First, you could try reaching out to the debtor to remind them of the outstanding payment and discuss the situation. It's possible that there might have been a misunderstanding... View More

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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.

James L. Arrasmith
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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 Estate Planning, Tax Law and Business Formation for New York on
Q: What is the best way for a Trust to own a corporation & can that corporation be an LLC or S corp?
T. Augustus Claus
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answered on Aug 21, 2023

In New York, a trust can own a corporation through strategies such as creating a holding company or a subsidiary structure. In a holding company approach, the trust establishes a corporation that owns shares of another corporation (LLC or S corp). Alternatively, a subsidiary structure involves the... View More

1 Answer | Asked in Business Formation, Contracts and Gov & Administrative Law for Massachusetts on
Q: How many of the bar members on here are Freemasons? I know all judges are 33rd, is it a requirement inorder to license

Considering almost all police officers are masons, and all judges are absolutely masons, I'm curious if all the attorneys are also of the masonic fraternity? Ladies eastern star? Is it a requirement?

John Michael Frick
John Michael Frick
answered on Aug 19, 2023

There is no requirement for attorneys or judges to be masons.

There is no data on how many lawyers or how many judges are masons.

No doubt some are. No doubt most are not.

1 Answer | Asked in Business Formation, Intellectual Property and Trademark on
Q: Can I use the trade name DOUGH BOY INC or DOUGH BOYS INC for Canadian doughnut company?
T. Augustus Claus
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answered on Aug 17, 2023

Certainly! When considering using the trade name "DOUGH BOY INC" or "DOUGH BOYS INC" for your Canadian doughnut company, it's important to conduct a thorough trademark search to ensure there are no existing registrations or uses that could lead to legal conflicts.... View More

1 Answer | Asked in Business Formation, Business Law, Intellectual Property and Trademark for Minnesota on
Q: Can I use Twin Cities in my business name?
T. Augustus Claus
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answered on Aug 16, 2023

Using "Twin Cities" in your business name could potentially lead to trademark issues, as the term may be associated with the Minneapolis-Saint Paul metropolitan area in Minnesota. If your business operates within or serves this region, using "Twin Cities" in your name might... View More

1 Answer | Asked in Business Formation, Business Law and Tax Law for Utah on
Q: Can I start a business entity that offers analytics services for free? Just for experience now, but may charge later on.

Hello! I would like to start a business entity that offers business analytics services and business process recommendations for free. I'm doing this because I want experience doing analytics and consulting not to make money right now. Is there a business entity I can set up that reports no... View More

Wesley Winsor
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Wesley Winsor
answered on Aug 16, 2023

yes, you can provide free services to people. Tax returns are required for businesses and individuals who make income.

A simple business to set up would be a single member LLC.

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