If your brother's company has a physical presence in California (warehouse, bank account, offices) he must register as a "foreign" corporation doing business in this state. You could have a joint venture (partnership) relationship between the two companies. Many of your questions are business, not legal, and you should be sure that you have a CPA to advise you for taxes and for many other reasons. Using a lawyer experienced in the garment business will probably help you in the short and long run.
Answered on Jan 12th, 2015 at 12:22 PM