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Elisha Michael Prero

Elisha Prero’s Answers

3 total

  • Reseller permit in state of illinois

    I registered my llc, and i am doing online retail business. I dont have any physical store. I was trying to purchase some goods from manufacturer and they require me to sign reseller certificate. I dont have resale number. Can someone please advic...

    Elisha’s Answer

    You should consult a business lawyer who is familiar with Illinois law. Generally, you will need to register with the State Department of Revenue (https://www.revenue.state.il.us/app/ibri/) and you may need to get a business license from your local municipality as well. It'd be a good idea to consult a CPA as early on as possible, too. That way, you won't get too far down a path that turns out to have costs that could have been avoided.

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  • How to I go about starting a joint venture in the State of California with another corporation that is located out of state?

    Do I need to fill out an application with the state? Can my current employees be employees of the new company?

    Elisha’s Answer

    Talk with a California lawyer who is experienced in structuring business relationships. The attorney you are looking for should first try to determine what your goals are, then how to go about achieving them.

    (Heads-up: in legal terminology, a "joint venture" usually denotes a partnership for a limited purpose).

    The question, from a business perspective, is what do you actually plan on accomplishing with state corporation? You may be able to accomplish your goal by entering into one or more contractual relationships without forming a new entity. Then again, the most rational way of getting to you goal may be forming an entity in which you (or your entity) have an interest as does the out-of-state corporation.

    The bottom line: ascertain your basic business goals first. Then figure out with an attorney the best way to achieve them.

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  • Whats best to be part owner or a shareholder of a company? What legal documents should I get from him?

    My wifes brother started up a new C corp company. He wants me to give him 20,000 for 20% ownership or 20% of the stocks when it goes public. Which one will make me the most money and be the safest for my investment. If he stays private, how will I...

    Elisha’s Answer

    All three answers above are accurate. There underlying problem in almost all start-ups is that everyone involved tends to be optimistic. That's for good reason: we come up with ideas that hold promise and those ideas usually need money to fulfill the promise. But what happens if that promise doesn't get fulfilled? Or if getting there takes a lot longer than planned (which is usually the case)? What happens if the company doesn't go public? If the company needs more money, then more ...and more again? That's why the common answer is, get yourself a business lawyer who can begin the conversation about how to protect you if things don't go quite as planned.

    You have another issue here: . Should you be doing business with family? There isn't an unshakable rule here, but you do need to consider whether the benefit of doing business with your brother-in-law will be worth the emotional, psychological, familial cost of having done so if things end up going sour. Is your relationship strong enough to withstand potentially significant stress and disruption? For many, the issue isn't what it might do to your relationship with your brother in law, but what that stress will do to your relationship with your wife, her relationship with her brother, her parents, the kids/cousins. What about the relationship cost of not investing? Your b-i-l may resent you for not investing with him, but it is likely that that resentment will be far less than if things begin to unravel and the relationship frays.

    Of course, if the opportunity looks very attractive, you may be willing to assume that risk. In that case, make sure you get an experienced lawyer in your area who can help protect you and your investment.

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