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Business Formation Questions & Answers
1 Answer | Asked in Tax Law, Business Formation and Business Law for Florida on
Q: When a non-profit organization dissolves, does the IRS-required asset-distribution clause apply to fixed assets, home?

The previous question I asked was intended to apply to Florida not California. The scenario would apply to partial funds from 501(c)3 donors used to purchase a home in Baja California which is Mexico over 25 years ago while the majority was used to purchase from "own" private funds.... View More

Terrence H Thorgaard
Terrence H Thorgaard
answered on Aug 16, 2023

Yes, when a non-profit corporation is dissolved, the assets covered by the asset-distribution clause applies to real property such as that in Mexico. It's essentially a matter of federal law, so it doesn't much matter whether the non-profit was incorporated in Florida, California, or elsewhere.

3 Answers | Asked in Business Formation and Business Law for New York on
Q: Do I need to form a PLLC vs an LLC if I am Physical Therapist looking to start my own practice in NY?

I formed an LLC already. Unaware after reading some websites that licensed professionals are supposed to form a PLLC but I wanted to confirm if that is true.

Samuil Buschkin
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answered on Aug 13, 2023

In New York, professional licensees of certain type cannot practice together with non-licensed people, making the regular LLC not an acceptable way to organize the company. Those filing the PLLC must be licensed to practice the occupation in question, and the company must be managed by those with... View More

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1 Answer | Asked in Business Formation and Business Law on
Q: Is it legal to sell subscription services using regional pricing like worldwide
Tim Akpinar
Tim Akpinar
answered on Aug 12, 2023

It could be difficult for attorneys to offer a blanket answer that applies universally - consumer laws can vary by region. Lawmakers don't usually get involved in dictating pricing for goods or services in a free market system - but still, every region could have its own laws. Good luck

1 Answer | Asked in Contracts, Business Formation and Business Law for New Jersey on
Q: As a sole director of a Delaware C Corp, how do I appoint other directors?

I need to establish an employer-employee relationship by appointing two other directors. What is the procedure that makes the appointments legal and substantive?

Leonard R. Boyer
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answered on Aug 11, 2023

That is determined by the corporate formation documents and the operating agreement, which no one here can know. So you need to retain an experienced corporate attorney. With modern technology, you can be represented by any high-quality attorney in New Jersey irrespective of geography.

1 Answer | Asked in Tax Law and Business Formation for Texas on
Q: In Texas, can you use LLC before approval from Secretary of State?
John Michael Frick
John Michael Frick
answered on Aug 10, 2023

Since the Texas Secretary of State processes certificates of formation and certificates of authority fairly quickly (2-3 days), this issue rarely comes up. Technically, you cannot do business in Texas in a company name until it is registered to do business in Texas. But, if you do, once it is... 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

James L. Arrasmith
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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 Copyright, Business Formation, Business Law, Trademark and Intellectual Property for Georgia on
Q: Would there be any trademark infringements to Skippy Peanut Butter for a dog treat bakery to be named Skippy's Snack?

Skippy's Snack Shack

David Aldrich
David Aldrich
answered on Aug 8, 2023

If you are planning to use "Skippy's Snack Shack" as the name of a retail bakery shop, you would have a low risk with respect to the mark for Skippy peanut butter. However, if you used this name on the snacks themselves, you could potentially run into a problem. You should contact... View More

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Q: selling hemp / CBD products online in MASS. Does this require a MDAR license or can I operate under farmbill USDA/FDA?

region is for Massachusetts

if you read the MDAR website its really confusing in the wording when discussing the Whole sale which I know for sure they regulate. Its confusing legalese I feel like should be a really simple answer..

Thomas Shack III
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answered on Aug 8, 2023

While the Farm Bill USDA/FDA regulations provide a framework for the cultivation and sale of hemp at the federal level, it does not exempt businesses from complying with state-specific requirements. Therefore, even if you are operating under the Farm Bill USDA/FDA regulations, you may still need to... View More

2 Answers | Asked in Business Formation, Intellectual Property and Trademark on
Q: Hi - can use the name 971maggi for a restaurant?
Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Aug 6, 2023

The surname MAGGI is an international brand of seasonings, soups and noodles, arguably a famous registered trademark now owned by Nestle, which is known for aggressively protecting its exclusive properties. Use of MAGGI in the field of food products or restaurants would most likely be challenged as... View More

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1 Answer | Asked in Business Formation and Business Law for South Dakota on
Q: Employee didnt sign noncompeteCurrently using same trade at another locationBusiness cards promote other location.Legal?

Was hired during covid, that's why the employee got away with working somewhere else. But it can't be okay that they promote the other location at ours. Also, a lot of supplies have gone missing at our location.

Tim Akpinar
Tim Akpinar
answered on Jul 31, 2023

A South Dakota attorney could advise best, but your question remains open for three weeks. It may have gone unnoticed under the Business Law and Business Formation categories. Non-compete agreements are something that employment law attorneys are knowledgeable with. Not all questions here are... View More

1 Answer | Asked in Business Formation on
Q: I am setting up an international wedding directory online. What kind of lawyer would I need to draft the users' T&Cs?

... and do I need them tweaked for America, Europe etc. due to different laws in different global areas?

Tim Akpinar
Tim Akpinar
answered on Jul 29, 2023

A starting point could be to reach out to attorneys who handle contracts and business law to try to arrange a free initial discussion. Certain elements could differ according to region - this is something to discuss with attorneys. Good luck

1 Answer | Asked in Business Formation, Business Law, Contracts and Insurance Bad Faith for Arizona on
Q: Do I have a good small claims court case?

I took over a business in Sept 2022, 6/7 mos later I gave the business back to the OG owner as it wasn’t a fit. Oct 22 I did work for a customer, charged him appropriately. In feb 23 I receive a chargeback for “unaware of pmt” to my business act for those services. This causes a whole lot of... View More

Tim Akpinar
Tim Akpinar
answered on Jul 28, 2023

An Arizona attorney could advise best, but your question remains open for two weeks. Before taking action, it could be advisable to first check with the card, financial institution, etc. to see what their policy and your options are in terms of recourses with chargebacks. Good luck

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: How do you change the members and owners of a multi-member LLC?
Anthony M. Avery
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answered on Jul 28, 2023

If there is a n Operating Agreement then look at that for any controlling terms. More than likely the Managing Member simply designates new members. A new owner would need to notify the State Secretary of State of their new manager status. But it is also dependent on what State the LLC is... View More

1 Answer | Asked in Business Formation for Georgia on
Q: 2 people starting a company together need guidance

2 people starting a company together.

1 person has the availability to invest more finical risk, one is brining more expertise.

How do you recommend structuring this in a fair way that protects both parties.

Glenn M. Lyon
Glenn M. Lyon
answered on Jul 22, 2023

That is too much of an open-ended question for an online Q&A forum. You should consult with a local business attorney and have them draft a comprehensive operating agreement (if an LLC) or shareholders agreement (if a corporation).

1 Answer | Asked in Business Formation and Business Law for Tennessee on
Q: can the treasurer of a non profit, an officer of the corporation, also serve on the board of directors? State is TN
Matthew Morris
Matthew Morris
answered on Jul 20, 2023

There is nothing to prevent the treasurer from serving on the board of directors in Tennessee, assuming that there is nothing in the bylaws that would prevent this.

The only requirement for serving on the board under the Tennessee Nonprofit Corporation Act is that “All directors must be...
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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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1 Answer | Asked in Business Formation for Alabama on
Q: I am interested in freelancing in two completely different fields. Should I create separate LLCs?

Under one field, I will need to set up an anonymous name.

T. Augustus Claus
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answered on Jul 10, 2023

Whether or not to create separate LLCs for different fields depends on several factors, including the nature of the businesses, the level of risk involved, and your personal preferences. Creating separate LLCs can help keep the liabilities of each business separate and protect the assets of one... View More

1 Answer | Asked in Business Formation, Consumer Law and Contracts for Florida on
Q: I trade-in my car in Dec. 2023, as of now the dealership has not paid it off. Now I have a charge off on my credit

I report the dealership to the DMV. The DMV advised to file a complaint with the dealership insurance bond company. I followed instructions. I was served and the insurance company is suing me and 4 other defendants. They stated myself and the 4 defendants will have to split a $25,000 bond. Any... View More

Terrence H Thorgaard
Terrence H Thorgaard
answered on Jul 10, 2023

You want to know why you are being sued. The complaint which names you as a defendant should indicate why. If it doesn't, consider moving to dismiss.

2 Answers | Asked in Business Formation and Business Law for Florida on
Q: I have an existing LLC in the state of Florida. Can it be converted to a non-profit? It is an arts organization.

Performing Arts Theatre. Live shows. Educational and Community.

Where would I find the procedure if this is a possibility.

Matthew Morris
Matthew Morris
answered on Jul 3, 2023

It is very difficult to function as a nonprofit and also as an LLC. The essential nature of an LLC is that the money left over at the end of the year gets distributed to the members, who are essentially the owners of the LLC. The essential nature of a nonprofit is that nobody is allowed to get the... View More

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