Get free answers to your Business Formation legal questions from lawyers in your area.
Your current state is Ohio
I've vested my percentage by coming in and running the business for the last 6 years but cannot afford to pay the taxes.
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answered on Jan 22, 2024
Receiving shares in an LLC as compensation for services rendered can indeed create a tax burden, as the IRS often views this as taxable income. In Nevada, while there is no state income tax, federal taxes still apply. One way to manage this tax burden is to receive the shares gradually over several... View More 
I would buy the controllers from an authorized Sony retailer, customize them, and then sell them online. Am I breaking any laws by doing this?
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answered on Jan 16, 2024
Starting a business customizing PlayStation controllers and then selling them is generally legal, but there are a few important legal considerations to keep in mind. First, when you buy products from an authorized retailer and modify them, you must ensure that your customization process... View More
The money is saved in llc checking account and never used unless it’s for business expense like buying materials. Both me and my husband don’t draw salary. Do we still need to file any tax forms or pay taxes on it?
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answered on Jan 15, 2024
Yes, even though you don't draw a salary from your Florida partnership LLC for your Etsy business, you still need to file taxes for the business income and expenses.
As a partnership, the LLC itself does not pay taxes. Instead, the LLC's profits and losses "pass through"... View More
The money is saved in llc checking account and never used unless it’s for business expense like buying materials. Both me and my husband don’t draw salary. Do we still need to file any tax forms or pay taxes on it?
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answered on Jan 14, 2024
If the partnership has reported income( falls within the Income definition within IRC), it should be reported on the annual 1065 partnership return. Based on the partnership income/expense allocation agreement, that amount will be reported on an individual K1, which will then be reported on your... View More
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answered on Jan 12, 2024
Yes, it is possible to set up a subsidiary of an S Corporation (S Corp) in Texas. Creating a subsidiary involves establishing a new business entity that is controlled or owned, wholly or partially, by the parent company (S Corp, in this case). The subsidiary can take various legal forms, such as a... View More
My Amazon account was closed recently, resulting in an outstanding balance owed to Payability (which a service that offers prepayment option for Amazon sellers on the shipped orders) due to premature payment. They proposed a payment plan of $1,000 a week to settle the remaining $19,320.89.... View More
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answered on Jan 12, 2024
If you are unable to comply with the proposed payment plan and your account proceeds into collections or personal guaranty enforcement, there are several potential consequences. The creditor, in this case, Payability, may initiate collection efforts. This can include contacting you for payment,... View More
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answered on Jan 11, 2024
If someone signed the paperwork for the formation of a business on your behalf, it raises concerns about the legal ownership and authority over the business. In business matters, signatures on important documents typically represent consent, authority, and acceptance of responsibilities. If the... View More
My foreign entity is in the process of being registered in CA but will take some time.
answered on Jan 11, 2024
You should be able to acquire the franchise in your personal capacity, then assign it to the company when it is qualified, but the franchisor must understand and agree that you intend to assign the franchise to your company. The company will have to agree to the obligations to the franchisor in... View More
My foreign entity is in the process of being registered in CA but will take some time.
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answered on Jan 11, 2024
In California, you can buy a franchise business in your personal name. This is possible even if your foreign entity is still in the process of being registered. However, conducting business under your personal name means you will be personally liable for all aspects of the business. This includes... View More
I am dabbling with the idea of forming a PMC offering security services locally and for government contracts but while I'm well aware what the day to day takes, I am wondering what detailed licenses and paperwork I would need to get started forming a business in that direction to ensure I am... View More
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answered on Jan 10, 2024
Forming a Private Military Contracting (PMC) company involves several specific legal requirements beyond standard business formation procedures. Firstly, you need to obtain a business license in the state where you plan to operate. In California, this would involve registering with the California... View More
answered on Jan 9, 2024
It seems like you're inquiring about alternative legal terminology for "a company of..." in the context of a DBA, which stands for "doing business as." Just to clarify, a DBA is simply a declared alias that a company or an individual is using for their business activities.... View More
Our LLP was established in January 2023. Unfortunately, we're facing financial constraints, and while other partners are willing to inject more capital to sustain the business, there is one partner refuses to invest further. what options are available to the other partners?
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answered on Jan 9, 2024
There are several issues that appear to be related to your question: (a) are the partners united or are their interests and positions in some way opposed to one another, (b) is it an LLP or an LLC ? Either way the Partnership Agreement or the Operating Agreement, respectively would need to be... View More
I live in Idaho, under a STEM OPT and I am incorporating an LLC (with a board to show employee-employer relationship). However, my company will be incorporated in Delaware as it's tech based.
Can I operate in Idaho if my company is registered in Delaware, and to which state will my... View More
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answered on Jan 6, 2024
Yes, you can operate your LLC in Idaho even if it is incorporated in Delaware. Many companies choose to incorporate in Delaware for various legal and financial benefits, but they can conduct business in other states. However, you will need to register your Delaware-incorporated LLC as a foreign... View More
I live in Idaho, under a STEM OPT and I am incorporating an LLC (with a board to show employee-employer relationship). However, my company will be incorporated in Delaware as it's tech based.
Can I operate in Idaho if my company is registered in Delaware, and to which state will my... View More
answered on Jan 5, 2024
Generally, the location of your company's registration does not restrict where it can operate. You would have to register the Delaware company in Idaho.This acknowledges that your business, originally formed in Delaware, will be conducting business in Idaho. It's a common procedure for... View More
The receiver was also appointed with a large conflict of interest in the case
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answered on Jan 4, 2024
In California, if a receiver appointed to a business is incurring high costs that seem unreasonable, or if there's a conflict of interest, you have options to address these concerns.
First, it's important to review the court order that appointed the receiver to understand the... View More
Example: I want to create a character to use commercially in the Invader Zim universe, without using any of the main characters or storylines.
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answered on Jan 3, 2024
Creating a non-canon character within an existing universe, such as in the Invader Zim universe, generally falls under the realm of fan fiction or fan-created content. However, the legal implications of using such a character commercially can be complex and may depend on various factors, including... View More
An immigration lawyer recommended that I have my brother, myself, and someone else on the board so it shows majority vote against me to prove employee-employer relationship. However, I do not have another person to get involved into this.
I am fine with my brother having sole directorship... View More
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answered on Dec 31, 2023
Under U.S. immigration law, particularly for those on F1 STEM OPT, establishing a valid employee-employer relationship is crucial. The recommendation to have a board with a majority vote against you is aimed at demonstrating this relationship, which is a key requirement for maintaining F1 status... View More
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answered on Dec 31, 2023
When you transition from an LLC to a PLLC (Professional Limited Liability Company), it's important to understand the specifics of business entity formation and tax identification. Typically, an LLC and a PLLC are considered separate legal entities, each with its own set of legal and tax... View More
I plan to elect S Corp status within a few days after getting EIN and all. I am curious on how it makes a difference if I start LLC or C Corp given S Corp form will be submitted in a matter of days following.
answered on Dec 29, 2023
Many people form an S-Corp to take advantage of the personal income tax breaks when paying yourself as both an owner and an employee of the business. The S-Corp election is more accurately called the "subchapter S tax election" and, as you point out, can be used in combination with an LLC... View More
The Canva terms of service are a bit confusing. My understanding is that if I have the free Canva plan and use only free Canva elements, I can essentially use the pictures/designs for anything I want besides selling them directly (in the context of trying to compete with Canva). I am starting an... View More
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answered on Dec 26, 2023
Your understanding of Canva's terms of service is largely on track, but there are nuances to consider. With a free Canva plan, you can use the free elements in your projects, including logos, PDFs, blog posts, social media, and course materials. This is generally acceptable as long as... View More
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