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California Business Formation Questions & Answers
1 Answer | Asked in Business Formation for California on
Q: I dissolved a corporation due to non activity with the business in 2021. However now I would like to reinstate it.

Does it make sense to reopen the same s Corp or would it be better to open a new corporation for my business?

I am also ready to hire an attorney to help me with this process (either opening a new one or re opening the old one). So it would be very helpful if this question is answered by... Read more »

Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Nov 17, 2022

If the corporation has been formally dissolved and its assets distributed, it cannot simply be "reinstated". But you can file new articles of incorporation with the same name.

1 Answer | Asked in Business Formation for California on
Q: Can I file a CA LLC if I am canadian?
Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Nov 4, 2022

Yes. A non-US citizen may be a member and/or manager of a California limited liability company.

2 Answers | Asked in Business Formation, Business Law, Contracts and Employment Law for California on
Q: Can I take my company’s client and start my own business in California

I work for company that takes care of people the person wants to hire me directly can I start my own business and care for that person

Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Oct 19, 2022

Some companies have employment agreements that include non-competition provisions which prohibit the employee from soliciting their clients for a period of time after the employee leaves the company. If your company does not have such a provision to which you have agreed, then after you have... Read more »

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2 Answers | Asked in Banking, Business Formation and Business Law for California on
Q: I just started a non-profit LLC company so what are the next steps in legally keeping my company in good standing?

Beginning of this month I filed my articles of incorporation and today the Secretary of State of California approved the articles of incorporation and I am unsure what to do next?

Matthew Morris
Matthew Morris
answered on Sep 24, 2022

Congratulations on starting your nonprofit. You have chosen an unusual path by using the LLC formation method. One of the first things you will likely want to do is to file a "statement of information" with the Secretary of State -- usually within about 90 days from when you filed your... Read more »

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1 Answer | Asked in Real Estate Law, Business Formation, Civil Rights and Legal Malpractice for California on
Q: I am living a gated community and HOA has no meeting and no elections for last 5 years since I moved in.

HOA has 5 board members which appointed by president. No elections at all. Is that legal? I have been asked for the election and no board member answers. Also I found out some board member on the position for 12 years and they use HOA water and HOA Garderner for private land. For such small... Read more »

James R. Dickinson
James R. Dickinson
answered on Sep 22, 2022

There are attorneys who practice HOA law. Speak with one about your situation. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]

1 Answer | Asked in Business Formation and Business Law for California on
Q: is neutrogena makeup remover wipes pack of 2 patented?
James R. Dickinson
James R. Dickinson
answered on Sep 22, 2022

Likely so and, if not, the formula is no doubt kept secret. [I litigate cases. Anything posted here must not be construed as legal advice, nor as grounds for forming an attorney-client relationship. You should seek an attorney for formal legal advice and representation.]

2 Answers | Asked in Business Formation for California on
Q: Can I legally use the abbreviation Dr. In my business name if I'm not a Dr.? If not, can I combine it with another word?

Ex: The Tooth Dr.

Or The ToothDr.

James L. Arrasmith
PREMIUM
James L. Arrasmith PRO label
answered on Sep 20, 2022

No. That would be false or misleading advertising.

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1 Answer | Asked in Contracts, Business Law and Business Formation for California on
Q: I'm starting 1099 consultant biz. Do most consultants charge travel time from my office to their office for auditing?
Neil Pedersen
Neil Pedersen
answered on Sep 6, 2022

The answer you seek will have to come from studying industry standards for the kind of consulting you will be doing. As an IC you have the right to charge whatever you wish, and in many industries, contractors charge for travel to and from worksites.

Good luck to you.

1 Answer | Asked in Banking, Business Formation, Securities Law and Stockbroker Fraud for California on
Q: Can I manage other people's money (money manager or portfolio manager) with only my series 65 license in California?
Steve A. Buchwalter
PREMIUM
Steve A. Buchwalter
answered on Sep 1, 2022

Anyone can allow you to manage their money. There are no requirements for you to do so. Having a business of, or charging for, managing someone else's money can a different story and is more complicated.

1 Answer | Asked in Business Formation, Business Law and Tax Law for California on
Q: Can I register a for profit business at a property owned by non profit religious organization?
Julie King
Julie King
answered on Aug 30, 2022

I'm sorry to say, your question doesn't make sense. Businesses are registered with the state, not registered at a property. Perhaps you can try asking your question again, but give the lawyers more information about what you need. Sorry about that!

1 Answer | Asked in Business Formation for California on
Q: I have a question about naming an S-corp and whether I will need to do a DBA.

I have been operating a small business as a sole proprietor and I'm at the point of needing to form an S-corp. My chosen name is too similar to another name, so the company helping me to complete the filing has asked me to find an alternative. Should I go with something COMPLETELY different,... Read more »

Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
answered on Aug 25, 2022

As you might imagine, the answer is "it depends" ... the first question is ... have you engaged or requested the "name research" and/or achieved the "name reservation" on your first choice for the corporation's name? The second question is how will your name... Read more »

1 Answer | Asked in Contracts, Business Formation and Business Law for California on
Q: A verbal agreement was made to be 50/50 business partners which include expenses/work load. Other party didn’t uphold

Other party did not uphold end as far as expenses and working business hours. Within 45 days of opening We have decided to part ways but now they are asking for double their investment which was about 15 percent of expenses to open the business. What are they entitled to. There is no written... Read more »

Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
answered on Jul 20, 2022

This will be hopefully resolved in four initial steps: [1] engage an attorney/mediator to assist the parties in working toward a resolution in one or two video calls with all parties - there are a few law firms that will offer this service for free ... [2] if mediation does not work, then to engage... Read more »

1 Answer | Asked in Business Formation for California on
Q: Special business permits etc for a freelance writer in CA.

If I am a starting up as a freelance writer working out of my home in California, are there any sort of permits or business licenses that I need?

Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
answered on Jun 23, 2022

Well ... some of the answer will depend upon your address location ... and what your local city or county requires for "home businesses". Additionally, since the advent of SB5 [employee/independent contractor status] most individuals and businesses will want you to have a business... Read more »

1 Answer | Asked in Antitrust, Business Formation, Employment Law and Gov & Administrative Law for California on
Q: Can I Email a judge? Or how do I contact the judge who presided over a hearing? He is a Admin. Law Judge.

The hearing was done remotely, and I have no idea how to ask for further review

my appeal was granted, but compliance has not been what was ordered. There are a few other concerns I need him to be aware of. I've tried all other ways to resolve the issues, but nothing is working. I feel... Read more »

Neil Pedersen
Neil Pedersen
answered on Jun 3, 2022

It is NEVER proper to directly communicate with a judge by email or any other form of communication. You need to get an attorney involved before you really get yourself in trouble.

Good luck to you.

1 Answer | Asked in Business Formation for California on
Q: Can you terminate a filed & accepted name reservation in the state of California?
Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
answered on May 23, 2022

As a general rule, the name reservation will expire in 60 days ... and you can "transfer" the name reservation to someone else.

1 Answer | Asked in Business Formation and Tax Law for California on
Q: Public purpose vs Charitable Purpose

On the filing of article incorporation of a NPO, two purposes available for ticking : Public purpose and Charitable purpose. What’s the difference? Also If Public purpose is checked can the organization still get 501(c)(3) tax exempt status ?

Matthew Morris
Matthew Morris
answered on Apr 28, 2022

A good question. It's not helpful that courts in California have frequently used the terms "public purpose" and "charitable purpose" interchangeably.

Taking your last question first: the IRS will not likely deny a 501(c)(3) determination if you check the box for...
Read more »

1 Answer | Asked in Business Law and Business Formation for California on
Q: I want to open a non-profit for my theatre but I'm not sure how to handle the sublease income on a separate floor.

I lease a 2 story building for a live theatre. The theatre occupies the 1st floor. I want to create a theatre non-profit.

The building has a 2nd floor. It's not part of the theatre. Sometimes the second floor is occupied through a sub-lease which is allowed in my lease, sometimes it... Read more »

Matthew Morris
Matthew Morris
answered on Apr 21, 2022

This question raises many of the big issues that nonprofit attorneys work on. You definitely should talk to a local nonprofit lawyer because there are LOTS of issues lurking here.

Issue 1: Are you sure you should be a nonprofit? One thing that a lawyer for nonprofits will probably do here...
Read more »

1 Answer | Asked in Banking, Business Formation and Consumer Law for California on
Q: The bank won’t give me my money or close my account

A friend of mine Give me a check and asked me to put in my account it cleared the bank refuses to give me the money for the money cleared on the 14th I just found out today the 23rd They told me they wanted my friend to verify himself so I went and got him got all the documents to verify himself... Read more »

Maurice Mandel II
Maurice Mandel II
answered on Apr 17, 2022

small claims allows up to $10,000. It may be the fastest way to unfreeze the account, and the bank should not put a freeze on any funds not a part of the check. Consult with a local attorney.

2 Answers | Asked in Business Formation for California on
Q: How do I form an LLC to start a business?
Fritz-Howard Raymond Clapp
Fritz-Howard Raymond Clapp
answered on Mar 2, 2022

To form an LLC, a document is filed with the CA Secretary of State which specifies the name of the company, and some basic details such as whether the LLC will have a manager, what will be the nature of its business, and who will act as agent for service of process. Then, you will need what is... Read more »

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1 Answer | Asked in Business Formation for California on
Q: What is the best way to buy a communal house w/multiple people- LLC, cooperative corporation, non-profit?

This house already functions as a co-operative. The current owners are selling and past residents would like to organize to purchase the property. This will need to be done fairly quickly. We have the funds for a down payment and to do some repairs however we'd like to know the best way to... Read more »

Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
answered on Feb 21, 2022

Assuming that the "financing" will support it, the initial answer would be the LLC ... which, depending upon how the LLC Operating Agreement is drafted, will allow relatively easy "in & out" of LLC Members and some level of asset protection for the individuals. The best next... Read more »

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