Legal Question in Business Law in California

There a number of legal considerations here. For example, you need to consider your business structure, your trademark, the terms and conditions of use and service for the site, privacy policy that makes sense for what kind of info you collect from visitors and customers among others.

This is not an appropriate forum to deal with all of this. I think your concern about licensing and permits is probably not as big a concern as some of these other things I noted above, but of course you will need to create a written agreement between your entity and these contributors that outlines the transaction and IP rights, etc.

I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.

I suggest buying and at least skimming two or more of the paperback self-help books on "How to Start and Run Your Company" or words to that effect. Nolo Press is one publisher. These books are loaded with practical advice on organizing, licensing, etc. as well as many other common situations entrepreneurs encounter. Having more than one allows you to compare the advice each author gives on a particular topic, or to find an answer to a problem the other author has overlooked.

Insofar as use of contracts goes, occasionally business people get by with oral agreements, but the likelihood of problems makes it highly preferable to take the time to put it in writing and get both parties' signatures. Some of the books mentioned above have sample contracts. I'd involve a lawyer for any unusual deal or where the amount of money involved warrants it.

Finally, operating across state lines can trigger another state's notion that you are doing business there, and hence subject you to registering there as a foreign LLC and filing tax returns and paying taxes on an apportioned profit basis. This can be quite complicated, and each state's law varies. In general, however, you aren't doing business in a state if you merely accept orders from, and ship to, a resident of that state; but if you rent a storefront or hire a salesperson there, you'll need to register. Check each state's requirements whenever your level of business activity involving the state or its residents goes above minimal.