Legal Question in Business Law in California

Me, my brother and my uncle are planning on starting a food delivery business, what type of license would be the best if we plan on initially keeping the money within the company, then after all equipment is paid for we would have profits? We would have employees driving not independent contractors.


Asked on 8/08/09, 2:19 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

You will need at least a general business license from your city (or county if the business is in an ununcorporated area). You may also need a permit from the California Public Utilities Commission; you should have a conversation with its staff to describe the proposed business and get an official answer as to CPUC permit requirements, if any.

I also advise forming a business entity such as a corporation or LLC to conduct this business. This will prevent (or lessen) certain personal liability issues that will arise if you fail to do so. Lacking a business entity, your business would automatically be considered a general partnership.

Finally, I advise making sure you have established working relationships with an insurance agent with some business insurance know-how, and a bookkeeper or accountant who can handle your books and records so you can file tax returns, prepare paychecks, do withholding, etc. on time and accurately.

There is quite a bit to setting up and running a business with employees. It goes well beyond just having a good idea, a customer and a truck. One or two of you maybe ought to buy one of those paperback books about how to start and run a small business and read it from cover to cover, so you'll know about things like worker's comp, filing Form 2553 to become an S corporation, when and how payroll taxes are deposited, and on and on.

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Answered on 8/08/09, 1:00 pm


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