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California Business Formation Questions & Answers
1 Answer | Asked in Business Formation and Business Law for California on
Q: Do I need 2 separate business licenses for different products?

I am a sole proprietor offering graphic design services and stationery in CA. Now, I want to start selling handmade jewelry and polished rocks (using a different name for this business) – do I need a separate business license for that? The owner (myself) and business address remain the same for... View More

James L. Arrasmith
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answered on Mar 3, 2023

In California, you are not generally required to obtain a separate business license for each different type of product or service that you offer. As a sole proprietor, you can operate multiple businesses under a single business license, as long as the businesses are related and have the same owner... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: Wyoming LLC

As an online seller business owner residing in California, do I have to register LLC in California if I already have LLC in Wyoming for my business? I have no employees, and my wife and I are the owners of the Wyoming LLC for the online business.

James L. Arrasmith
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answered on Feb 20, 2023

If you are doing business in California, then you are required to register your LLC in California as a foreign LLC. Doing business in California generally means that you are selling goods or services within California or have a physical presence in the state, such as an office or a warehouse.... View More

1 Answer | Asked in Business Formation, Business Law and Contracts for California on
Q: I just made an LLC in December in California through incfile. I wish to cancel it. Please help!!

I can't afford to $49/monthly fees and I can't afford $119 for statement of information (CA state fee $20 and processing fee $99). Times are tough right now and I just can't afford it. I started an LLC cause i was trying out affiliate marketing thingking it'll be easy can earn... View More

James L. Arrasmith
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answered on Feb 19, 2023

To cancel your LLC in California, you will need to follow these steps:

File a Certificate of Cancellation with the California Secretary of State. You can do this online or by mail. The fee for filing the form is $35.

Once the Certificate of Cancellation has been filed, you will need...
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2 Answers | Asked in Business Formation and Business Law for California on
Q: I want to start an online business. DBA, LLC, both, neither?

I will not be selling products. I will offer a service which will pay me a finders fee as compensation. I will be conducting the business from home/online. No employees. Do I need to register a DBA, get a license, LLC? Im in California

Shawn R. Jackson
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answered on Feb 13, 2023

As is often the case, the answer is "it depends" ... upon [1] your exposure to liability ... [2] your management structure ... and the [3] the scope of your services ... the next step would be for you to schedule at least two free initial consultations by video call or telephone call.

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2 Answers | Asked in Business Formation and Business Law for California on
Q: LLC Formation for Real Estate Investment

I need to form an LLC to buy and operate a rental unit. Three members are brining 1/3 investment each. Can there a buy-out clause such that one member can be bought out a year or later when two other members can bring the capital equal to the initial investment of third member plus 6% annual... View More

Shawn R. Jackson
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answered on Jan 1, 2023

yes, but with several issues ... management issues, capitalization protocols, any improvements ... and of course, valuation formula ... always best to schedule a few free consultation video calls with at least two law firms to discuss the options and strategies.

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1 Answer | Asked in Business Formation, Business Law and Internet Law for California on
Q: What constitutes as the state in "doing business" for online business filing for a LLC? Owners in separate states too

I've read in some articles that the place to file an LLC is in the state you reside, even for online businesses. As you would need a foreign LLC to do business in the home state anyways if you filed out of state.

But what is the definition of "doing business"? Is it the... View More

Louis George Fazzi
Louis George Fazzi
answered on Dec 17, 2022

Lawyers practice law so they can provide advice on questions just like this. Are you asking this question because you are only interested in LLCs, or do you need advice on how to set up an LLC and begin operating a business under one? This forum isn't here just to satisfy someone's... View More

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... View 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... View 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... View 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... View 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 R. Dickinson
James R. Dickinson
answered on Sep 20, 2022

As you're learning, there's more to selecting a business name than many people realize. I litigate cases, but I know attorneys who help persons set-up businesses. Anyhow, speak with a local attorney today. [I litigate cases. Anything posted here must not be construed as legal advice, nor... View More

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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
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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,... View More

Shawn R. Jackson
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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... View 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... View More

Shawn R. Jackson
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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... View 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
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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... View 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... View 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.

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