Hot answers tagged california
11
State courts in California have not held that employers are liable for wages. New York state courts have - and even have criminal penalties for wage violations.
HOWEVER, you need to know that the there is a federal regulation called the Fair Labor Standards Act ("FLSA") and recently the Ninth Circuit US Court of Appeals held employers liable for wages ...
5
Continue to put in resumes, so you can show that he is actively looking for a job, but in his free time he can start working on the start-up.
If he is still collecting unemployment when you start to make moiney then you will want to ensure that he is being honest about what he is making, as, it will cause many problems if he lies about what he is making, so ...
4
...are there any good reasons to
having a Corporation established in
California apart from being a resident?
Yes. If you register a company in a state other than your home state, you will still have to register your company in your home state as a foreign entity (assuming you will be doing business in your home state). This means that you will end ...
3
There's a bit of a confusion here. First, you have to understand (according to the IRS circular 230), that my answer was not intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. This is not a tax advice.
The benefits of S-Corp are that you may not be required to pay ...
3
Here's California's statute on the matter, search for "17052": http://law.justia.com/codes/california/2009/corp/17050-17062.html
In a nutshell, it has to either contain the words "limited liability company" or end in "LLC" or "L.L.C.", cannot be a name that's likely to mislead the public, cannot be the same as another LLC or corporation, and cannot use the ...
3
LLC is not corp... You should start with clarifying the requirements. S-Corp is a tax term, legal entity is "Corporation" or "LLC" (they can both be S-Corp's for taxes).
Corporations and LLC's are very different entities, and I personally would prefer LLC (have preferred LLC, to be more exact), as it is much simpler. For corporations you need directors, ...
2
If you do any business in California, you will have to pay the $800 minimum franchise tax regardless of where you incorporate. Note that Corporations do have a first year exemption from that minimum franchise tax. LLCs do not.
For NY, there is an expensive newspaper publication requirement, typically $500-$1000+ depending on which county your primary office ...
2
Incorporating elsewhere does not avoid California law if your business operations occur in California - you have to foreign register/qualify for business in CA anyways before legally doing business in CA if you incorporate out of state.
Also be wary of certain quirks in cross-state rulings:
From http://en.wikipedia.org/wiki/Non-compete_clause
California
...
2
AmplifyLA (http://amplify.la/)
IdeaLab (http://www.idealab.com/)
LaunchpadLA (http://www.launchpad.la/)
MuckerLab (http://www.muckerlab.com/)
Originate (http://originate.com/)
Science (http://science-inc.com/)
StartEngineLA (http://www.startengine.com/)
UpstartLA (http://upstart.la/)
2
Here's the link to the FTB definition of "doing business in California". If your LLC fits the requirements - you'll have to chip in with the Golden State. Based on what you've described, it doesn't look like you'll have to pay the $800 merely because of the investor, but do get a consultation with a California licensed CPA to ensure that.
2
You should seek a tax professional to help you with that. I'm a tax professional, so a disclaimer is required: nothing I write here was intended or written to be used, and it cannot be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on any taxpayer.
You only have to pay yourself a salary if you have net income from the ...
2
There've been numerous discussions about this here, but I'll dare to repeat myself - you'll save nothing by incorporating outside of your state, if you're in the US.
Here are some questions on this issue that you might find related: One, Two (read the discussion in the comments), Three.
I'll summarize it again:
It is my opinion (I'm not a tax professional ...
1
You are asking detailed Qs about a specific situation. There is no way anyone can provide proper answers based solely on the information you have provided.
You need to retain a lawyer to examine all of the relevant documents and facts. Only then can you receive detailed, on-point answers.
Disclaimer: This information does not constitute legal advice and ...
1
so will there be any unitary tax consequence and issues with having
the owner be the parent company?
Yes, there might be. I suggest getting a proper legal and tax advice from a competent person in that area. If there's no particular reason to incorporate in CA, I suggest it would probably be better for you to incorporate in another state.
1
I've written a couple of related answers already. Take a look at this one and this one.
Generally, the benefit of incorporating or forming LLC is limited liability, i.e.: you personally will not be liable for business debts (if managing the business appropriately of course). There are significant taxation implications though that you should familiarize ...
1
One other thing to think about is what happens to the business if one of your creditors (i.e. not a creditor of the business) goes after you personally. In most states, the creditor can take your shares of an S-Corp and use the resulting control to liquidate the company. LLCs can provide some protection from this in the form of "charging order protection" ...
1
If the counterparty is in CA, CA courts will not enforce non-compete provisions (subject to certain exceptions). Please see Choice-of-Law and Non-Compete Provisions.
What you can include in your NDA, however, are (a) acknowledgement that the confidential information constitutes your trade secret and (b) a provision stating that the counterparty may not use ...
1
The problem with names is that it's hard to get a ".com" address for it usually. So while you can pretty much name your company legally using any name (that is not already taken by a large brand, don't call your company "Apple, Inc." obviously), whay website will your business card show?
No one cares about your legal name otherwise.
1
I believe you are referring to the $800 annual franchise tax imposed on businesses for the privilege of doing business in CA.
Yes, you will need to pay the $800 annual tax even if your LLC had no profit.
From page 7 of Form 568 Limited Liability Company Return of Income:
LLCs are subject to an $800 annual tax if they are doing business in California or ...
1
Let me start in order:
I cannot find any restrictions on visas to open a business in California. You can actually get a visa if you are planning to invest in a business in the United States so I don't see that H-1B is an issue.
A business is incorporated in a state and then you can do DBAs in other states.
You can follow one of these websites to do it: ...
1
Assuming it is just the two of you, I don't think there is anything you absolutely need to do at this point. The big question mark for me is if there is anything you need to do regarding your overseas servers. Please update your question with where they are and why.
There are things that you should do:
Before any money comes in, sign an agreement with ...
1
There is quite a bit of case law behind the entire issue of internet taxation. Generally, in order to be taxed in a particular state, a business must have a “substantial nexus” to the state. This depends on the existence of 1) Headquarters, 2) Employees, 3) Bank Accounts, 4) Servers, and/or 5) Return stores (Non-employee founders are not on this list...). If ...
1
I may be wrong, but the main reason I would choose to incur the added trouble and expense of being a Limited Liability Company is to take advantage of the limited Liability. So far as the liability that you might incur doing business online in beta status, you might decide that there isn't any but you should probably also consider getting a good Errors and ...
1
Claudia,
Question 1 - To quote from the California LLC instructions:
LLCs are subject to an $800 annual tax if they are doing business in
California or have articles of organization accepted, or a certificate
of registration issued by the California SOS. The annual tax is
prepaid for the privilege of doing business in California, and is due
and ...
1
In the UK you must be:
actively looking for a job
willing to take any job
willing to travel up to 90 minutes each way
able and willing to start a job the next day
And able to convince the benefit officer of the above.
Only top voted, non community-wiki answers of a minimum length are eligible
