I am an American currently living overseas and expect to be overseas for another year. I am fearful that I might need to be physically present in order operate the business and qualify to purchase insurance such as liability insurance and worker'...
You can create a company in the U.S. with little problem. I happen to prefer Delaware to Nevada but you could use either. I would not organize in California until you come back, assuming you will live there. California is one of the most expensive, if not the most expensive, state in the country in which to create an entity.
You don't need workers comp etc. unless you have employees. If the business is on line and you are operating from abroad things will be relatively simple. For example, if you organized in DE but operate from abroad there will be no DE tax, though there will be federal tax. If and when you hire employees or do something else to establish a bona fide physical location for activity, you will need to register in that state as a "foreign" company. Hope that helps. Oh, the process can be done in a day or two.See question
Homeowner paid G.C. and G.C. refuses to pay sub- contractors.
You should consult with a local real estate or construction lawyer. In some states, e.g., New York, money paid by an owner to a GC is held in trust for the subcontractors. Failure to pay that money to the subcontractor like yourself opens the GC to significant liability. If there is a parallel statute in NM, that could be helpful.
You should also be able to file a mechanic's lien against the property. That will not make the owner happy and might lead the GC to step up and pay you. Look at Title 48 of the New Mexico Statutes. There are several provisions but the following is a place to start:
48-2-2. Mechanics and materialmen; lien; labor, equipment and materials furnished; definition of agent of owner.
Every person performing labor upon, providing or hauling equipment, tools or machinery for or furnishing materials to be used in the construction, alteration or repair of any mine, building, wharf, bridge, ditch, flume, tunnel, fence, machinery, railroad, road or aqueduct to create hydraulic power or any other structure, who performs labor in any mine or is a registered surveyor or who surveys real property has a lien upon the same for the work or labor done, for the specific contract or agreed upon charge for the surveying or equipment, tools or machinery hauled or provided or materials furnished by each respectively, whether done, provided, hauled or furnished at the instance of the owner of the building or other improvement or his agent. Every contractor, subcontractor, architect, builder or other person having charge of any mining or of the construction, alteration or repair, either in whole or in part, of any building or other improvement shall be held to be the agent of the owner for the purposes of this section.See question
I started a web design LLC with another person. I put up 100% of the money and the agreement was that I would put up the money, bring in the clients, and he would do the work since he's a programmer/developer and I'm not. The company is in debt du...
The first question is whether you have an operating agreement executed by both of you. If so, what percentage of the business does your partner own. Do you have any written agreement?
In the absence of an agreement, there will be some question as to whether your partner has any interest if in fact he has contributed nothing. You could sue, but that will cost you several thousand dollars at least, and the question is "what would you recover?"
You might be better served by working out an agreement for your fellow member to withdraw without any consideration (payment). You will have to address the debts and you can ask for him to contribute. However, I think as a practical matter you are better off cutting a deal to get rid of him and then trying to move the company forward, or simply dissolve the company and start again. If he is truly a member the two of you will share responsibility for the debts of the company if the company is dissolved, as assets and liabilities will go to the members.
Hopefully you have an operating agreement to guide you through this. If not I urge you to be certain you have a well drafted agreement for any company you might start in the future, or get an agreement for this company.See question
I am wondering if I can use famous quotes with unknown sources like "what gets measured get managed" or "what gets measured get done" as a tagline for my business. If yes, do I have to include the quotation mark?
The protection given to a quote would be copyright protection, which typically runs for the life of the author plus 70 years. Given that the author is not identified, whether any copyright protection is attributable to the quote would be difficult to discern.
My quick Google search suggested that the first quote may date from 1883, which suggests it may now be in the public domain. The quotation is often attributed to Peter Drucker who died in 2005., but there is no clear evidence that Drucker originated the phrase.
A copyright arises when the quotation is reduced by the author to tangible form. If it is just a statement made and not written by the author copyright may be a non-issue.
Having said all of that, if you use the phrase and add a footnote or other note indicating that the author i is unknown, you will not likely face any scrutiny. There is a concept known as "fair use." If you use this isolated phrase which seems to be well known, it may be deemed fair use of the phrase. I think as an abundance of caution, and as a matter of integrity, you should note that you are borrowing someone else's words, even if you do not know the source.
Unless the phrase was reduced to writing by the author there is unlikely to be any basis for a claim of infringement. Moreover, registration of the phrase with the U.S., Copyright Office would have to precede any action.See question
Looking to startup a Cosmetology and Barbering school, in the LA county, in California. I'm would be the owner of the company since I'll be the one funding, but the division of profit is going to be 3-way, amongst myself, an individual who is res...
The first question is whether to create an LLC or a corporation. You state that you will be the only owner, but that profits will be shared with others who are contributing in various ways. Why not give them a share of the company? You could use an LLC and give each of the others something like 5% or 10% of the company each, so you still have control of the company. Make it manager managed with you as the manager as well. With an LLC you can distribute profits pursuant to a formula that is not necessarily related to ownership. With a corporation, profits must be allocated according to the ownership interest of each shareholder.
These other persons are contributing "sweat equity" and I think it would be wise to allow them to share in any upside of the equity over time if the school is highly successful. There is little to no downside.
In short, if you want to distribute profits in a way that does not reflect ownership interests, you need an LLC. If you determine not to give these persons a membership interest, then you and they must determine whether they are independent contractors or employees. That determination is a legal one that must be made with consideration of both IRS and Department of Labor rules, as well as state law.
My recommendation would still be to give your colleagues some equity interest in the company as well as a share of profits, since they appear to be essential to the busines.See question
I have the H1B1 visa, same as my husband. We came to the US because of my husband work. I have created a very profitable business here, but since I can't work in Fl because of my Visa, my husband created an LLC under him, so everything I make on m...
Presumably your current employer facilitated your obtaining your H1B1 visa. Likewise I assume that your husband's employer sponsored his visa. As you noted you cannot work for compensation in the United States outside of the employer who sponsored your visa.
Although on its face it does not seem rational, even though your business may be profitable and contributing to the economy, you cannot work for it. You could own the company or a part of it, but you could not be employed by it. Of course, you cannot be employed technically by an LLC you own.
Working ostensibly for your husband's LLC could be problematic. One factor the government considers is whether the employer can fire you. Although in theory your husband could fire you since he owns the company, I think the government will question whether that is true as a practical matter.
This is really an immigration related question, more than an LLC question. Whether the company is an LLC or a corporation is not the determining factor here.See question
If my company needs to register in California as a foreign corporation, when is the right time to register it? Business details: It is an online service (a mobile app) that connects hairstylists with people for free. This service is available...
I must say that the first question in my mind is why in the world did you create a C corp in Delaware and not use either an LLC or elect S corp status. Generally a C corp is not a wise choice for a company like yours.
Although there may be some niceties to consider in determining whether your company is doing business in California, I think that the fact that you reside in California and that the services are provided through your activities in California, more likely than not would lead the State to find that you are doing business in California. Registering there is expensive, more expensive than most states, but I think it would be unwise not to do so.
I regularly set up Delaware companies for clients both in the U.S. and outside the U.S., and if a company owned by my client were active in California I would certainly advise that it register there. Registration is just a cost of doing business in California.See question
Indiana code states "Unless otherwise provided in the operating agreement, profits and losses must be allocated on the basis of the agreed value, as stated in the records of the limited liability company." What records are they referring to? Wha...
Your circumstances underscore the importance to LLC Members of drafting operating agreements, and the importance of retaining counsel familiar with LLC's in setting them up. Too often issues arise later that could easily have been addressed in the agreement.
Typically members agree on the percentage of ownership each has in the company. That percentage then informs how profits are reported for tax purposes, since an LLC is taxed like a partnership at least for federal tax purposes. If each member owns an equal share, each member gets an equal percentage of the profits.
If each member contributed money to the company, the value might be the percentage of the total contributed by each member. Your accountant should be able to guide you in this matter.
Once you determine the ownership share of each member, I urge you to have a proper operating agreement drafted to address this and other issues that may arise over time.See question
i am a self employed contractor and i have a client (church) who is now 120 days past due on an $85,000 invoice. when i made the agreement, the invoice was due when the work was completed and then i noticed that they changed the terms on me and ke...
I urge you to seek out a real estate or construction attorney in Texas. In most states as a contractor you can file a mechanic's lien against the property. Eventually, if need be, you could foreclose upon the property. Alternatively you may be able to sue to recover if need be. Move quickly though as there is usually a short period in which to file any lien. There is enough money involved here that you should not find that legal fees will eat too much into your recovery. Although you need to make the business decision, if you presented this situation in a state in which I practice, I would suggest you pay my hourly rate rather than having the case done on a contingency, at least if you can still file and foreclose upon the lien.See question
hello I'm based in US. trying to figure out how to keep my trade secrets confidential while working with a content developer in India. I wanna prevent him from contacting my contacts in the US, using my name on his portfolio, etc. I'd apprecia...
You cannot guarantee enforceability even in the U.S. If someone breaches the NDA typically you must litigate to enforce it. The same would be true in NDA. What you might do is to provide for international arbitration through the AAA or another organization in some neutral location, e.g., the UK. The agreement should shift all costs of litigation to the other party if the NDA is breached. Reach out then to an Indian lawyer to determine whether there is any provision of Indian law which would strengthen enforceability. You certainly want to avoid any arbitration or litigation there, so the question is whether you could effectively litigate and shift costs to the defendant in India, to compel the defendant to arbitrate or the like and to do so in the forum identified in the Agreement. In short, in addition to the protective language of the NDA, you need to build in the best possible mechanism for enforcement in that NDA and there an Indian lawyer or one of the many Indian lawyers who also practice in the U.S. could be helpful.See question