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How to Set Up a California Nonprofit Corporation

DeAnn Flores Chase

How to Set Up a California Nonprofit Corporation

Setting up a nonprofit corporation in California is a complex process that involves the intersection of federal and state laws. If you want to set up a nonprofit, it’s important to familiarize yourself with the process and to work with your business attorney to ensure that no detail slips through the cracks. The specific type of nonprofit that most people think of when they hear the word “nonprofit” is called a “public benefit nonprofit corporation,” formed under the IRS’s 501(c)(3) tax exemption. To take advantage of this exemption, you first need to form an entity in California. After successfully completing... READ MORE

Terms You Should Make Sure to Include in Your Consulting Agreements

Consulting agreements are like most other agreements for services—they create the terms under which a consulting company will provide said consulting services to its clients. Consulting services can run the spectrum from code audits to financial advising to site selection to staffing, and the agreements should be customized to reflect the nuances of each different business. Beyond the usual contract clauses, and beyond the clauses that should be customized by your attorney to reflect the specific nature of your business, there are a few provisions most consulting agreements should make sure they cover. Scope of Work: Clearly defining the scope... READ MORE

Understanding Workers Comp in California

As a business owner, there are many steps you will need to take when hiring employees including finding a payroll system that works for your business, drafting an employee handbook outlining your business’ policies and procedures, and purchasing workers compensation insurance. Some of these steps, like purchasing workers compensation insurance, may seem insignificant or something that can be put off but they are critical to avoiding government fines, costly audits, and being left with a financial burden if an employee is injured on the job. To help you better understand what your workers compensation policy means for your business, we’ve... READ MORE

What Duty of Care Do I Owe to My Business?

Those involved in business leadership—such as owners, directors, and LLC managers—owe a particular level of responsibility and care to their business. This level of responsibility takes the form of a number of particular duties, often referred to as “fiduciary duties.” You may have heard your lawyer talk about these duties, which include things like the duty of care, the duty of loyalty, and the duty of good faith. These duties all work together to ensure that business leadership makes decisions and operates the business in a way that is in the business’s best interest.  This post will focus in on... READ MORE

Professional Corporations: The “Whens” and “Hows”

Just like in any other sector, highly-educated professionals often find themselves wanting to set up a business entity to better allow them to protect themselves, serve their clients, and to share support services with other similar professionals. When these sorts of professionals want to start a business in the state of California, they are required to use a type of business entity called a “professional corporation.” When Should I Form a Professional Corporation? As discussed above, licensed professionals will need to set up a professional corporation, rather than an LLC or a traditional corporation. As a general rule, if you’re... READ MORE

Injunctions: What Are they and When Should You Use Them?

An injunction is an order granted by the court that requires the parties to not do a particular thing. Business contracts often refer to “injunctive relief” (or obtaining an injunction from a court to stop someone from doing something) or the related “specific performance” (requiring someone to do the specific things they agreed to do in a contract) as an option when economic damages are not sufficient to cover a problem. Examples of such situations include prohibiting contractors from sharing information they were given under a non-disclosure agreement and forcing a seller of a unique good to actually deliver the... READ MORE

Keeping Records for Your LLC


By DeAnn Flores Chase February 25, 2019    Category: Business Law

Keeping Records for Your LLC

Many business owners choose to protect their business by forming a separate entity, such as a limited liability company (also known as an “LLC”). Often, forming an LLC for your business can hit the “sweet spot” of compliance concerns. This is because an LLC gives your business benefits like a formal structure, its own tax number, and some limited separation from yourself, while also avoiding many of the corporate formalities that are required with traditional corporations. Many business owners take this lack of corporate formality to mean that their LLC has no recordkeeping requirements whatsoever. Unfortunately, this is simply not... READ MORE

Raffles and Sweepstakes In California

Businesses and charities love to raise funds and awareness by holding games of chance, especially raffles and sweepstakes. These can be fun ways to get people involved in a marketing campaign for a new product, or in participating in a community event. However, there are very strict laws about how to legally hold a raffle or sweepstakes. It’s important to know the requirements here, to make sure your business doesn’t end up accidentally running an illegal lottery. Raffles Charities are allowed to hold opportunity drawings such as raffles, so long as they meet the requirements laid out in the California... READ MORE

New Year, New Business, Let’s Talk Entity Formation

Business owners looking to grow and expand their businesses often do so by acquiring new assets, buying real estate, venturing into a new industry, or by acquiring an existing business. In many of these situations, it makes sense for business owners to establish a new entity to operate the new business or to hold the new assets. There are a number of reasons you may want to consider forming a new entity in this New Year. Different Business Owners or Investment Structure In some cases, business owners may want to form a separate entity for their new venture to allow... READ MORE

Preparing to Fire an Employee


By DeAnn Flores Chase January 22, 2019    Category: Business Law

Preparing to Fire an Employee

In California, employees are regularly hired “at-will,” meaning that companies can, and do, let them go at any time and for (just about) any reason. However, there is more to letting someone go than just saying “you’re fired” and escorting them from the building. Because of the likelihood of an employee-employer relationship turning sour upon termination, it’s a particularly good idea for a company to have a formal, objective termination policy in place. A termination policy can also help to protect your business in instances of accusations that an employee was let go for a reason that is not legally... READ MORE