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California Business Formation Questions & Answers
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
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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
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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.

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
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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...
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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... View 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...
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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... View 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
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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... View 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... View More

Shawn R. Jackson
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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... View More

1 Answer | Asked in Contracts, Business Formation and Business Law for California on
Q: Was offered partnership to create new division of company. After a year he fired me. He kept everything. Is that legal?

I created new division separate from existing company to engage in an area of the industry he wasn't . Only shared name and license numbers. Everything else, I made. Forms, branding, procedures, had my own employees, payroll, books even had to pay him rent for offices. I would become a partner... View More

Fritz-Howard Raymond Clapp
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answered on Feb 14, 2022

You have a good claim for breach of contract, where the contract was an agreement that you perform services to set up the business in return for an ownership share. You completed your end of the agreement, but the other party failed to compensate you as agreed. The agreement may have been oral or... View More

1 Answer | Asked in Consumer Law, Products Liability, Business Formation and Business Law for California on
Q: Is it illegal to resell abandoned used cloths?
Leon Bayer
Leon Bayer
answered on Jan 19, 2022

Selling used clothes is legal.

1 Answer | Asked in Contracts, Real Estate Law and Business Formation for California on
Q: Can a business owner keep my deposit if we needed more time in order to buy the business but she sell it to someone else

We put in a deposit to buy a business but due to unforseen circumstance at my work, I need more time before I can quit my job and start the business. There was no agreement signed stating that the deposit was non refundable but she refused to refund my money and is planning to sell to someone else.... View More

Yelena Gurevich
Yelena Gurevich
answered on Jan 3, 2022

it's generally not a good idea to give anyone a deposit without a written contract. at this point you will either need to pay a business attorney for a complete consultation and advice or possibly take your chances in small claims court (if the amount is under $10,000).

1 Answer | Asked in Government Contracts, Banking, Business Formation and Business Law for California on
Q: I received an email from " Jerome Powell " saying the federal reserve bank has millions o dollars in my name . There

Supposedly their is a large fund from the imf that belongs to me , it's been going on for 4 yrs now . What are the chances it's real ? I have acct numbers docket numbers but where can I validate them

Julie King
Julie King
answered on Dec 27, 2021

It's almost certainly SPAM, but a lawyer would need to look at the actual email to tell one way or the other. Look at the email address from which it came. Does it end with .gov or .com? All government addresses should end with .gov. Also, if they ask you for your social security number or... View More

1 Answer | Asked in Business Formation and Business Law for California on
Q: Operating Agreement

Good afternoon.

A legal entity (LLC) has been established. One of the documents required to do business is the Operating Agreement. The problem is that some of the members are non-U.S. residents. Because of the epidemiological situation, we cannot be physically present in the United States.... View More

D. Steven Yahnian
D. Steven Yahnian
answered on Dec 5, 2021

In California, electronic signatures and photocopied signatures are as legally valid as originals for most legal documents that do not need to be recorded. LLC operating agreement signatures do not need to be notarized unless the document will be recorded. However, I have never seen an LLC... View More

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