Tag: california

Incorporating a Company in California and Potential Tax Issues

Incorporating a Company in California and Potential Tax Issues

Setting up a business in California is nothing less than a dream. Not to mention, this large and wealthy state is a house to various industries such as technology, agriculture, and entertainment. Thereby, your business may get plenty of exposure once incorporated successfully in The Golden State.

Plus, you should consult with a certified attorney regarding legal formalities. This step will ensure smooth completion of pre and post business requirements. Building a business in the state requires a series of steps, and you must learn the following before beginning.

 Business Name

Investing time in picking a company name can save you from various business problems. The title should be unique whether you operate nationally or internationally. Make sure to keep it easy to pronounce/understand. You can even search your proposed name on Bing or Google to identify potential conflicts.

Moreover, searching US Patent and Trademark Office (USPTO) for trademark will clarify if selected name is acceptable or not. Don’t forget to search for plurals, spelling variations, and sound alike to double-check it’s not registered already. You should go through California Secretary of State’s Business entity database in this context as a minor similarity amongst names leads to rejection.

Also, you need to include a correct corporate identifier to your business name like incorporated, corporation, or at least an abbreviation. You should not opt for words such trust, trustee, insurer, or bank, etc.

 Business Structure

You can choose a structure from three basic options.

1.    A Corporation

This option provides liability protection to the owner. A corporation includes officers, shareholders, and directors. The structure is complicated, however, an ideal choice for great startups that plan to elevate funding in future.

2.    A DBA or “Doing Business As”

A DBA is also called a Fictitious Business Name or FBN. That isn’t a separate structure idea that partners or individual can use as the business name.

3.    “Limited Liability Company” or an LLC

An LLC allows you to run a business without a hassle of directors, officers, and taxation. This structure provides liability protection with less complexity and tax as compared to a corporation business option.

Register your Business

Incorporating a company in California requires:

  • Form or documents ARTS-GS filing with the California Secretary of State Corporation Division
  • Conduct an organizational meeting to take note of ownership of each shareholder along with to-do tasks such as payback pre-incorporation expenses, open an official bank account, and elect S-Corporation status

Tax Issues

Taxation problems occur due to inappropriate record-keeping and underpayment of taxes. In most cases, a consumer pay sales tax but the business owner neglects to pass it to the state. The BOE can hold employees, business owners, and people associated with the company’s operation responsible in this context. You should pay personal income tax as the estimated quarterly tax isn’t optional.

You may encounter penalties and interest on the unpaid amount if you don’t pay tax on personal income – full, on time. Moreover, poor record-keeping may land you in trouble when you file tax and during the process of audit. You cannot defend your deductions if you don’t provide accurate receipts. Not every business owner has the expertise to deal with taxation. That is why you need a lawyer to get potential tax issues fixed for you.

Bottom Line

Call Earl Jiang at 866-263-7866 and seek legal help on incorporating a company in California.


An Alameda Immigration Lawyer to Help You with Complex Californian Immigration Laws

An Alameda Immigration Lawyer to Help You with Complex Californian Immigration Laws

The clash between California and the federal government over immigration laws is not hidden from the public anymore. As California continues to disharmonize with the federal government on undocumented immigrants, understanding the law becomes more difficult for employers, law enforcement departments, educational institutes, etc. It won’t be wrong to say that even the immigrants face some tough situation as they attempt to wrap their heads around the law when interacting and transacting with various local institutions as customers, students, and citizens.

Here is a basic snapshot of what Californian immigration laws look like and how having an Alameda immigration lawyer on your side can help you out of an unfriendly situation.

Employers and Immigrant Workers

Employers are faced with the biggest dilemma they ever have while employing undocumented immigrants and complying with federal law when it comes to immigration agents visiting their business for investigation. State law will penalize employers that let immigration agents interrogate their workers or go into their records without a legal warrant. If they allow investigations without warrants, employers can face penalties ranging from $2,000 to $10,000. On the other hand, ICE (US Immigration and Customs Enforcement) plans to increase the pace of its investigations to capture illegal immigrants in California since the state has become a Sanctuary State.

The Sanctuary State Law

That’s where the state and the federal governments have come head to head. California has become a sanctuary after the enactment of California Value Act that protects investigations and detaining of undocumented immigrants by federal agencies. With this law, federal agents cannot keep an individual detained until they have a federal warrant or proof of that individual’s felony. The law also prevents the state law enforcement officers from handing over undocumented immigrants to federal agencies unless that individual is a sex offender or has committed a crime in the last 15 years.

The crimes for which an individual can be given into federal custody have to be one of those that appear on California’s Trust Act.

Law Pertaining to E-Verify

E-verify, an internet-based system for validating an individual’s eligibility to work as a legal employee is commonly used in many other states whereas California has restrictions on its use. Californian counties and municipalities are not to make private employers follow ordinances pertaining to e-verify. Private employers, however, have the liberty to use or not use the system while hiring employees.

Educational Benefits

California’s DREAM act goes against the laws that many other states follow. Those states have higher rates of tuition for undocumented immigrants and lower tuition rates for their legal residents. The DREAM act allows undocumented immigrants to pay the same tuition fees that any legally residing students of the state pay. These same undocumented immigrant students can take advantage of various grants and aids available from the institutions too.

The Immigration law in California can be extremely confusing, especially when the state and the government are up in arms about each other’s take on undocumented immigrants. If you are an individual, educational institute, employer, etc. from California and the immigration law is confusing you, get in touch with Earl Jiang at 866-263-7866 for immediate assistance.

Caught With Marijuana In Your Car? A Lawyer Can Help You Know Your Rights

Caught With Marijuana In Your Car? A Lawyer Can Help You Know Your Rights

The new drug law has permitted consumers to buy, smoke, or cultivate marijuana in California. Over 21 adults are allowed to possess one ounce of the drug and you can use eight ounces of cannabis for medical purposes. However, consumers are advised to stay vigilant in this context even after the legalization of marijuana.

Proposition 64 contains a set of diverse rules which as an adult, you are expected to learn and follow as even slight negligence may land you in harrowing circumstances. There are certain factors that you need to ensure before opting it like the quantity of the drug. For instance, smoking a joint is prohibited in public places, you cannot purchase it without showing an ID, or you require a license whether it is for medical purpose or an adult use.

It is worth noting that the state holds strict policy for getting caught with marijuana in the car or even under the influence of the drug. This is why you should consult with a lawyer in that particular case and learn about your rights.

“Open Container” Law

California Vehicle code 23222(b) makes it unlawful for you to drive while having possession of marijuana. It includes:

  • Drugs found in an open or unsealed container
  • Not found in a container

Violation of the rule is punishable and you may encounter a fine of up to $100. You will need a certified attorney in this case. The lawyer will ensure that California Highway Patrol (CHP) will not charge Vehicle Code 23222(b) against you if the drug was obtained under the recreational possession laws or medical marijuana laws in California.

Moreover, driving with an open container of marijuana is strictly prohibited. It is an infraction which comes with a whopping $250 fine. Additionally, individuals under 18 who found guilty in the case will be given drug education and will have to spend time doing community service.

Possessing More Than the Legal Amount

You may be charged with a California misdemeanor or face a fine if the marijuana found in your possession is more in quantity than permitted by the law. Recreational marijuana law hinders retaining more than 28.5 grams. You will need a lawyer to fight your case when it comes to committing a misdemeanor because it is categorized as a crime and it can send you to a county jail for a year in the case.

The Condition for People Under 21

You cannot keep any amount of marijuana in your possession if you are under 21. There is a possibility of compliance with medical marijuana laws of California. As a result, you may come in effect of Vehicle Code 23222. Moreover, cases like these are better handed over to an attorney who has specialized in marijuana law in your state. Not to mention, criminal charges like these could have a damaging effect on your future which is why they must be dealt with legally.

Bottom Line

Contact Earl Jiang at 866-263-7866 and learn more about your rights without further delay.


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