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California Business Formation Questions & Answers
3 Answers | Asked in Business Formation, Business Law and Contracts for California on
Q: Business model legality and company formation?

I have a mobile app that shares sports betting predictions. there is no gambling in my mobile app. only predictions of the results of sports matches are shared only by me. users see these predictions as paid subscribers. for example the result of the LA lakers vs Boston Celtics NBA game, Boston... View More

Pavel Kolmogorov
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answered on Dec 19, 2024

The business model described, which involves sharing sports betting predictions and odds without facilitating actual betting or linking to gambling sites, may not fall under the definition of gambling in many jurisdictions. However, the legality can vary significantly by state.

In...
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1 Answer | Asked in Business Formation for California on
Q: I am a CPA and am planning to partner with a non-CPA partnerto start an advisory firm. Can we be an LLC in California?

This firm will only be offering accounting/bookkeeping/contoller and CFO advisory services. No Audit/attest or compilation services

James L. Arrasmith
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answered on Jul 23, 2024

Yes, you can form an LLC in California with a non-CPA partner for the type of advisory firm you are planning. California allows LLCs to offer accounting, bookkeeping, controller, and CFO advisory services as long as they do not include audit, attest, or compilation services. This means you can... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: Do I need to file a Foriegn LLC in California if I register my startup in Delaware ?

I am just thinking of starting my own company and currently living in California State. As most tech statups are registered in Delware, I was planning to register in Delaware. But since I live in California do I need to register it in california as well ? I will be the only person working for now.... View More

James L. Arrasmith
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answered on Jun 30, 2024

To answer this question concisely:

Yes, if you're living and operating your business in California, you'll likely need to register your Delaware LLC as a foreign LLC in California, even if you're the only person working and have no sales or revenue yet.

Key points:...
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1 Answer | Asked in Business Formation, Business Law and Mergers & Acquisitions for California on
Q: Dissolution and closing of a Personal Service C Corp upon the death of sole shareholder & president

A Personal Service C Corp had only one shareholder, who was also the president. Upon the death of the sole shareholder & president, the business is closed and the C Corp needs to be dissolved. The Secretary of the C Corp will sign the Certificate of Dissolution to be filed with the Secretary of... View More

James L. Arrasmith
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answered on May 15, 2024

In the case of a Personal Service C Corporation with a single shareholder who was also the president, and upon their death, the corporation needs to be dissolved and closed. Here's a step-by-step guide on how to proceed:

1. Appoint a new director: If the deceased shareholder was the...
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1 Answer | Asked in Business Formation, Business Law and Contracts for California on
Q: How can I change my corporation back to a sole proprietor. I am 100% owner.

I currently am a licensed contractor in the state of California and would like to transfer corporation to a sole proprietor. I want to keep my name the business name I operate under since I have it tattoo on my body

James L. Arrasmith
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answered on Apr 24, 2024

To change your business structure from a corporation to a sole proprietorship in California while keeping your business name, you'll need to follow these steps:

1. Dissolve your corporation by filing a Certificate of Dissolution (Form ELEC STK/NP) with the California Secretary of...
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1 Answer | Asked in Business Formation, Trademark and Intellectual Property for California on
Q: If I am using Dali Llama Yoga for a business name, would there be an issue or conflict with the person Dalai Lama?
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answered on Apr 12, 2024

There could potentially be some issues with using "Dali Llama Yoga" as a business name in California. While the spelling is slightly different, the name is very similar to the Dalai Lama, the religious leader of Tibetan Buddhism. This similarity could lead to a few potential legal... View More

2 Answers | Asked in Business Formation and Business Law for California on
Q: Can a California notary form a LLC in California?
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answered on Apr 9, 2024

Yes, a California notary public can form a Limited Liability Company (LLC) in California. However, it is important to keep the notary business separate from the LLC.

Here are a few key points to consider:

1. Separate entities: The notary commission is granted to the individual, not...
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2 Answers | Asked in Business Formation and Business Law for California on
Q: Can a notary in CA form a LLC
James L. Arrasmith
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answered on Apr 9, 2024

Yes, a notary public in California can form an LLC (Limited Liability Company). However, they would be doing so in their capacity as an individual, not in their official role as a notary public.

In California, any individual can form an LLC by following these steps:

1. Choose a name...
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1 Answer | Asked in Contracts, Business Formation and Business Law for California on
Q: We are a non-profit booster organization. We are attempting to compel a former treasurer's refusal to return documents.
James L. Arrasmith
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answered on Mar 7, 2024

Under California law, a nonprofit organization has the right to access and retain possession of its official records, including financial documents handled by its treasurer. If a former treasurer is refusing to return such documents, the organization can initially try to resolve the matter through... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: I am in Lancaster, CA. I want to start my own business

I will be doing my business out of my home, online. I will not have any inventory, I will not be selling any products, I will have no clients at my house and I will be the only employee. I will offer a service and will charge a finders fee if the client agrees and completes all paperwork. I will... View More

James L. Arrasmith
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answered on Feb 29, 2024

Starting your own business in Lancaster, CA, as a sole proprietor and offering a service online is an exciting venture. To begin, you will need to file for a "Doing Business As" (DBA) if you plan to operate under a name different from your own. This is essential for opening a business... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: I want to start my own business. I live in LA County, California.

I would work from home, I have no inventory or items to sell and I will not have anyone coming to my home. I will be offering a service that can be done mostly online. I think it will be best for me to run my business as a Sole Proprietor and will apply for my DBA. What licenses or forms do I need... View More

James L. Arrasmith
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answered on Feb 29, 2024

Starting your own business in LA County, California, as a sole proprietor with a focus on providing online services is a commendable initiative. Since you're considering operating under a name different from your own, filing for a "Doing Business As" (DBA) is indeed your first step.... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: hello if my business license was expired nut now renew. am i able to charge storage fees b4 or once license up todate

i had a car that was a total lost. The insurance company refuse to pay storage fee or any fees other than a tow bill. Due to my business license being expired. My business license has been renew and its up to date.

Can they get away with it.

I can not charge storage fees even... View More

James L. Arrasmith
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answered on Feb 23, 2024

Under California law, the legality of charging storage fees when your business license was expired depends on the specific regulations governing your business sector and local jurisdiction. Generally, operating a business without a valid license can invalidate your right to enforce contracts or... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: LLC State Formation Question - CPR Training

I have a CPR Training center. We provide a service. We have 3 physical locations currently. Covina, CA, St. Louis, MO, and Philadelphia, PA. I am filing taxes this year as a sole proprietor however next year I want to create an LLC. Am I able to create the LLC in a state like Nevada even if my... View More

James L. Arrasmith
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answered on Feb 22, 2024

In the United States, it's indeed possible to form an LLC in a state where you don't actively conduct business, and Nevada is a popular choice for many due to its favorable business laws and privacy advantages. If you decide to form your LLC in Nevada, you'll benefit from the... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: Will a parent LLC in NM for a subsidiary in CA need to register as a foreign entity CA if I live in CA doing eCommerce

If a California subsidiary is registered by a parent company in New Mexico and conducts business within California, does the parent company, based in New Mexico, also qualify as 'doing business in California'? Consequently, would it be necessary for the New Mexico parent company to... View More

James L. Arrasmith
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answered on Feb 1, 2024

In California, if your New Mexico parent company has a subsidiary that conducts business within the state, it may trigger the requirement to register as a foreign entity in California. Even if you operate the subsidiary primarily for eCommerce and live in California, the fact that your parent... View More

1 Answer | Asked in Business Formation, Business Law and Gov & Administrative Law for California on
Q: What is the California Code Business and Professions Code for Insurance Agents to file for an Article of Incorporation?
James L. Arrasmith
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answered on Jan 23, 2024

Under California law, insurance agents who wish to form a corporation must comply with specific provisions in the California Insurance Code, in addition to the general requirements for forming a corporation under the California Corporations Code. The specific section of the Business and Professions... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: I want to start a business customizing PlayStation controllers and then selling them.

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?

James L. Arrasmith
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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

2 Answers | Asked in Business Formation and Business Law for California on
Q: Can I buy a franchise business in my personal name in the state of California?

My foreign entity is in the process of being registered in CA but will take some time.

James L. Arrasmith
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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

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2 Answers | Asked in Business Formation and Business Law for California on
Q: Can I buy a franchise business in my personal name in the state of California?

My foreign entity is in the process of being registered in CA but will take some time.

Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
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

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Q: What kind of licenses are required to form a PMC (private military contracting) company?

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

James L. Arrasmith
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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

2 Answers | Asked in Business Formation, Business Law, Civil Litigation and Contracts for California on
Q: We are currently under receivership and the receiver is running up extremely high costs for the business.

The receiver was also appointed with a large conflict of interest in the case

James L. Arrasmith
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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...
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