WE'VE MOVED!

We are proud to announce our NEW community destination. Engage with resident experts and fellow entrepreneurs, and learn everything you need to start your business. Check out the new home of StartupNation Community at startupnation.mn.co

starting up an LLC with 2 divisions in California

sweetkasweetka subscriber Posts: 1
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 subscriber Posts: 0 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 subscriber Posts: 1
    Dear RobertJ,
    Thank you so much for answering all my questions so clearly!
  • robertjrobertj subscriber Posts: 0 Member
    You are welcome.
    If you want to discuss your specific situation, feel free to contact me directly
Sign In or Register to comment.