How do we use our California registered LLC business as an "umbrella"
or "parent company" in developing separate business interests? Can we
form a non-profit under our LLC?

Howdy futurefold-ga,

A reminder of the "Important Disclaimer: Answers and comments provided on
Google Answers are general information, and are not intended to substitute
for informed professional medical, psychiatric, psychological, tax, legal,
investment, accounting, or other professional advice."

According to the Easy Corp Ltd. LLC FAQs (Frequently Asked Questions)
your LLC could just start another LLC of its own.
http://www.company-incorporation.us/llc-faq.html

"A LLC can be owned by a US or foreign person, a corporation or another
LLC. However S corporations cannot be owned by other corporations, most
trusts, LLCs, partnerships, or nonresident aliens."

According to this Don Kramer's Nonprofit Issues "Q&A," your LLC business
can form at least a 501(c)3 nonprofit organization.

"Can a for profit company set up a 501(c) organization under its umbrella?"
http://www.nonprofitissues.com/public/features/point/97.html

"If your question is about a 501(c)(3) charity, the answer is yes. There
are many corporate foundations controlled by business corporations and
occasionally a public charity. The IRS tests the activities of the
organization more than its sponsorship."

You might want to examine the 501 code in detail for more.  This can be
found several places, including the Legal Information Institute (LII) web
site.
http://www4.law.cornell.edu/uscode/html/uscode26/usc_sec_26_00000501----000-.html

"§ 501. Exemption from tax on corporations, certain trusts, etc."

A step-by-step process of doing any of the above is beyond the scope of
this answer, and as with all possibly complex business formations, a chat
with a tax or corporate attorney would not be a bad thing to consider.

If you need any clarification, please feel free to ask.


Search strategy:

Google search on: LLC "own a LLC"
://www.google.com/search?q=LLC+%22own+a+LLC%22

Google search on: umbrella LLC form OR forming nonprofit
://www.google.com/search?q=umbrella+LLC+form+OR+forming+nonprofit

Google search on: Section 501
://www.google.com/search?q=Section+501

Looking Forward, denco-ga - Google Answers Researcher

broke ? down into clear succinct answers w/ URL's for further research.