California Business Formation Questions & Answers

Q: can I use companies trademarked logos on another brand listing that makes money?

2 Answers | Asked in Business Formation, Business Law, Copyright and Trademark for California on
Answered on Feb 18, 2019
Thomas A. Grossman's answer
Only if you want to risk being sued by the other companies for Trademark Infringement.

Q: I intend to title my LLC , Moving Humanity Forward. These words were trademarked by General Motors. Can I use this?

2 Answers | Asked in Business Formation, Business Law and Intellectual Property for California on
Answered on Feb 17, 2019
Thomas A. Grossman's answer
Since GM has already trademarked that phrase, I think you would have to use another phrase, e.g. "taking humanity forward," etc.

Q: I have used a particular set of words in academia and I am interested in using this as a business title.

1 Answer | Asked in Business Formation and Business Law for California on
Answered on Feb 15, 2019
Thomas A. Grossman's answer
Impossible to answer the question unless we know what the words are. If you want to use your words in a title to your business, you need to first clear them with the Office of the Secretary of State. They process name searches for most incorporated businesses. It is also possible to hold a business title for up to 3 months by paying a fee to the State for that service. You can then renew it a day after the 3 months is up. Your competitor may have only reserved the name. If he or she has...

Q: What permits/licenses are required in unincorporated San Bernardino County CA to sell and sample prepackaged jerky?

1 Answer | Asked in Business Formation, Business Law and Contracts for California on
Answered on Feb 13, 2019
Robert Lopez's answer
Hi, the permits/licenses you will need depend on where you are going to "cook" your product as well as where you are going to sell your food. Since you are planning on making your jerky in unincorporated San Bernardino, CA, you should start with the County of San Bernardino. Their website pages that deal with food preparation is: The best place to start out is http://wp.sbcounty.gov/dph/programs/ehs/applications/. If you are serving the food, you should also check out:...

Q: Hi, which licenses are needed for a business that holds customers money in accounts that they can access across country?

1 Answer | Asked in Banking, Business Formation and Business Law for California on
Answered on Feb 13, 2019
Robert Lopez's answer
Hi, every state is going to have a different law and most will require a slightly different type of license. The most common type of license is a "money transmitter" license. Most, but not all, of these licenses are regulated by each state's Department of Banking Department/Division. Others will be regulated by that state's Attorney General's office. The actual names of the departments/divisions will vary in each state. The cost of each license will also vary, but it may cost you somewhere...

Q: How can I find out all the bankruptcy filings that happen. I may be interested in purchasing the company or assets.

1 Answer | Asked in Bankruptcy and Business Formation for California on
Answered on Feb 2, 2019
Timothy Denison's answer
Go to pacer.gov, set yourself up an account and you can see all the bankruptcies file by region.

Q: Is it possible to negotiate out of a franchise agreement - I already put money down, but can't pay the rest.

1 Answer | Asked in Business Formation for California on
Answered on Nov 25, 2018
N. Munro Merrick's answer
Basic fact: You can negotiate anything! Your franchise agreement probably has a provision for early termination, including probably a liquidated damages clause. That would require you to make a payment to get out of the deal, depending on you are in the process. A liquidated damages clause ins based on the assumption that the money damages are hard to calculate, and that they discussed that clause with you before you signed. I think you will need a lawyer to examine the franchise agreement.

Q: Hi my company in Japan is thinking about establishing a rep office in CA. Wondering if we need to pay tax in this case?

1 Answer | Asked in Business Formation, Business Law and Tax Law for California on
Answered on Nov 9, 2018
Paul Martin Vargas' answer
Hi. The company would have to register with California as a foreign entity (foreign means entities outside of California, not just the U.S.). As a result, $800 minimum Franchise Tax to California per year would be due. Also, any activity conducted in California will result in income tax liability for both California and the IRS. There may be offsets due to foreign tax paid and exclusions, but now I'm getting outside the scope of this question. I hope this helps.

Q: NEEDS LAWYER FOR FRAUD CASE AGAINST GEORGETOWN UNIVERSITY ONLINE MS IN FINANCE

1 Answer | Asked in Business Formation, Civil Litigation, Consumer Law and Criminal Law for California on
Answered on Oct 30, 2018
Dale S. Gribow's answer
google fraud lawyers in DC not california.............maybe put in Fraud/Georgetown Univ

Q: How soon after starting a new business do I need to create a board of directors?

1 Answer | Asked in Business Formation for California on
Answered on Oct 18, 2018
N. Munro Merrick's answer
You say "Board of Directors." That term usually refers to the people who manage the business of a corporation. If you are referring to a corporate body, the answer is, "yesterday." What is the point of having a corporation if you cannot or will not use it?

Q: what should i do if i was cheated by a cheater who pretended to of me a job?

3 Answers | Asked in Criminal Law, Employment Law, Business Formation and Internet Law for California on
Answered on Oct 18, 2018
Gary Kollin's answer
You have been scammed and you are being scammed again.

Q: Trying to collect on a judgement on a business that dissolved after my judgement. What do I do

1 Answer | Asked in Collections, Small Claims, Consumer Law and Business Formation for California on
Answered on Sep 21, 2018
Vernon Charles Tucker's answer
If the Corporation dissolved typically you are out of luck and have an uphill battle in front of you to enforce the judgment.

However, its complex and requires motion work, but if certain facts are present you could argue the new corporation is the same as the old corporation or is an "Alter Ego" of the old corporation. This may open other doors that could apply pressure to judgment debtor if they are one in the same.

I would look at the amount of the judgment, and see whether...

Q: Do I need to file a silent partnership agreement with the city of Los Angeles in order for it to be legal?

1 Answer | Asked in Business Formation and Business Law for California on
Answered on Sep 12, 2018
Thomas A. Grossman's answer
You state you filed your business with the City of Los Angeles, but that does not establish any rights to the business name. Usually, cities simply collect a yearly fee from you because they can. The easiest thing to do is file a fictitious business name Statement with the County of Los Angeles. That allows you to protect your business name (once you have one), and protect it for (I think) five years. You can form a written partnership, but to do it properly usually requires the help of a...

Q: Which type of company has the highest legal protection against lawsuits, INC or LLC?

1 Answer | Asked in Business Formation and Business Law for California on
Answered on Aug 23, 2018
Thomas A. Grossman's answer
The problem is that each entity has both advantages and disadvantages, and you have to decide which one is best for you. That can take some time, and may depend on the goal of the business. Since you want an entity to run a business involving online beauty products, you might want an LLC over a corporation since internet law is a big deal these days, and there are more and more cases involving internet disputes. The most important thing you must first decide is how to fund the entity,...

Q: 3 people enter into an LLC business venture together. 2 of those people bring $10,000 cash each and the third person

1 Answer | Asked in Business Law and Business Formation for California on
Answered on Aug 7, 2018
Thomas A. Grossman's answer
I can't say that what the third person did is "illegal," but it is certainly not proper to be the only member of the LLC that has actually put money into the LLC that is other than capital. You should tell the third party that the LLC is not responsible for paying off his loan.

Q: I heard Husband & Wife LLC can be still treated as a disregarded entity so as sole propertorship. Is that true?

1 Answer | Asked in Business Formation, Business Law and Contracts for California on
Answered on Jul 31, 2018
Thomas A. Grossman's answer
Go to the following link on your computer: https://ttcl.intuit.com/questions2133106. They will have an answer for you. It is, however, rather long and complicated. Good Luck.

Q: What happens if you breach an NDA after the company has breached your contract and has not invoiced you?

1 Answer | Asked in Business Formation, Business Law, Contracts and Employment Law for California on
Answered on Jul 18, 2018
Richard Gary Burt's answer
In California, a non-compete between a company and a former employee is invalide. That is, in California, a company cannot legally require an employee not to compete with the employer after the employment has terminated. This applies whether or not the company has breached the employment agreement and whether or not the employee has breached the employment agreement.

The obligations of an NDA might be independent of any obligation of the company (it depends on the facts). Any claim for...

Q: adding child support or temporary child support to an otherwise 50-50 legal and physical court order, immediately

1 Answer | Asked in Child Support, Contracts, Family Law and Business Formation for California on
Answered on Jul 11, 2018
Angelina Bradley's answer
The short answer is you should take your child custody order or agreement to DCSS and apply for their help establishing and enforcing a child support order. That process will take 3-9 months.

Also apply for unemployment and for public assistance for some help till you get back on your feet. Good luck.

Q: Hi. I want to open my small Home Based business. And 1. I Want to know what kind of licenses do i need?

1 Answer | Asked in Business Formation and Business Law for California on
Answered on Jul 5, 2018
Thomas A. Grossman's answer
First of all, when you say "home based business," I assume you mean you are going to operate you business from your home. If that's the case, if you live in a condo development or other planned unit development, you may have to clear it with the HOA. Some HOA rules allow you to operate a small business at home as long as you do not create a lot of traffic and parking issues due to your business. You will probably need a City License for the business, and you'll need to set up a tax account...

Q: If I self sponsor an H1B for a new company I am starting with my US partner, would it be part of the annual quota?

1 Answer | Asked in Business Formation and Immigration Law for California on
Answered on Apr 19, 2018
Carl Shusterman's answer
The H1B is one of the most popular employment-based Visas in the United States. It is for foreign nationals with a Bachelor Degree (or an equivalent foreign degree) that are coming to the U.S. to perform services in a specialty occupation. A specialty occupation is one that generally requires the attainment of a Bachelor Degree.

The H1B Visa requires the sponsorship of a U.S. Company. However, after years of uncertainty, the USCIS now accepts H1B petitions filed by a U.S. Company formed...

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