starting up an LLC with 2 divisions in California

sweetkasweetka Posts: 1subscriber
edited October 2010 in Business Planning

I am about to start an LLC and though I have done a lot of research, I still have important unanswered questions.
Please help with whatever you can!
1. Is it possible to
create 2 divisions under one LLC if one division is a services website,
the other is in the catering business?
2. Are there extra costs associated with creating these 2 divisions under one LLC in California?
3. Are there any waivers of the $800/year franchise fee for an LLC for new business start-ups? Economic recovery laws, etc...?
4. For an online
company, is it better to file in California or Nevada? What I mean is,
can the California foreign company tax of $800 be avoided if the
business operates online?
Thank you in advance!



Comments

  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    sweetka,
    Here you go:
    1. A "division" is not a legal entity as is an LLC or Corporation, so in theory you can create them internally. If you want to do business as two separate names (including a bank account) you will need to file for the dba's with the county.
    2. Depending upon what you are trying to accomplish - there may be some small costs associated with acquiring the dba and maintaining separate bank accounts, merchant accounts etc.
    3. If you set up the entity after Dec 18th - you don't have to pay the $800 for that year. Otherwise, there are NO waivers.
    4. If you live in CA- you will be expected to pay the $800
  • sweetkasweetka Posts: 1subscriber
    Dear RobertJ,
    Thank you so much for answering all my questions so clearly!
  • robertjrobertj Tampa Bay, FloridaPosts: 0subscriber Member
    You are welcome.
    If you want to discuss your specific situation, feel free to contact me directly
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