Legal Question in Business Law in California

What is the best was to be taxed when forming an LLC for a family business? Would it be prudent to file a DBA before doing an LLC to simply get the bank account open? We are purchasing a from a family member and things have not been very formalized should we be concerned? They want to simply add us to the current bank account so that we take over on 1/1/2011 as administrators of the business that seems ackward?


Asked on 12/23/10, 4:38 pm

1 Answer from Attorneys
Richard Jefferson M.E.T.A.L. LAW GROUP, LLP

In my opinion, it is beneficial (legally) to form the LLC first and have the LLC be the owner of the dba. I am not an accountant so I can't advise on the tax structure. Your transaction definitely sounds like it is too informal.

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Answered on 12/28/10, 4:43 pm


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