# Subsidiary Company - Licenses & Permits



## geemoon (Mar 1, 2011)

I'm going to be selling t-shirts on my website that I run, and I'm a bit confused after reading multiple threads on what I need to operate, as a business selling shirts. I'm based out of Huntington Beach, California; however, I plan on moving to Los Angeles when my lease is up in June.

I filled out the paper work for an LLC under 'GGS Enterprises' and am still waiting for it. What I want to do is register my shirt business as a subsidiary company under GGS. So, this is where I get confused. I'll need to register a Fictitious Business Name under GGS, and apply for a new Federal Tax ID number (or do I get a new Tax ID by registering a Fictitious business name)?

And, before I start selling shirts, I'll need a resellers permit from the California Board of Equalization (www.boe.ca.gov)

Fictitious Business Name (what's the fee??)
Tax ID? (free)
Resellers Permit (free)

Am I missing anything here? I think I'll need to get a Los Angeles City Permit?

P.S. Is there an easier way in doing this? Should I just skip registering my shirt business as a subsidiary under GGS, and just register a fictitious business name?


----------



## Posylane (Mar 3, 2011)

I am not in CA so can't help you with the specifics, but perhapes you can shed some light on why go to the trouble of having a subsidiary company? Two tax IDs means two tax returns a year, two sales tax filings a month, etc. ect.

If you just want a different name to do business under, can you just register a different DBA?


----------



## geemoon (Mar 1, 2011)

That's what I'm actually confused about. But the main reason is that I'm starting another business with my buddy and brother which we'll be importing a product from China and selling it here in the United States. So we wanted to make a main company (i.e., GGS Enterprises LLC) and then have our other businesses as subsidiaries.

But back to the point, What is the difference between obtaining a DBA and Fictitious business name?

P.S. The t-shirt business is just a side project we're doing because we run a very big music website, we just wanted to make shirts for our follows and fans and maybe make a some money out of it. But overall, I'll have to figure this whole thing out as I'll be registering other businesses in the near future :x


----------



## tv23 (Feb 7, 2011)

Good question, I was actually thinking of buying a 51% share of my main material supplier's business and it becoming a subsidiary of my main business. Any info anyone?


----------



## Posylane (Mar 3, 2011)

> But back to the point, What is the difference between obtaining a DBA and Fictitious business name?


By itself, nothing. A company is a named legal entity that can do business under a different name. You are a named legal entity that can do business under a different name.

Subsidiary usually means a business owned by a seperate, higher entity. I guess what I am trying to say is you are asking very vague questions. 



> Good question, I was actually thinking of buying a 51% share of my main material supplier's business and it becoming a subsidiary of my main business.


You could do this via a contract where you own 51% of that business. If they are a corporation you would get 51% of the stock. Or your company (assuming it is a corporation/LLC) could own the 51%. There are legal questions about if this is or is not a good idea.


----------



## geemoon (Mar 1, 2011)

Alright I think I figured out everything, thanks for the replies though. I went ahead and registered for a fictitious business name ($26 here in Orange County for Huntington Beach).

Now the only thing I need to do is apply for a resellers license and I'm good to go, because I'll be getting a Tax ID with my fictitious business name correct?


----------

