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Understanding Workers Comp in California

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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

Crafting an Employee Handbook

As your business grows and you employ a number of people in different positions, you’ll want to consider putting together (and then periodically updating) an employee handbook. This document should be clear, well written, easy to search, and cover a number of different aspects about how your company’s policies will be applied. A handbook not only helps employees understand what is expected of them, but it also protects you in any potential future disagreement with your employees. Having clearly-written policies, which are then properly enforced, can be an integral defense in a labor dispute, and can even help prevent such... READ MORE

A Look Ahead


By DeAnn Flores Chase January 04, 2019    Category: Business Law

A Look Ahead

The new year will bring with it several new laws that will impact businesses of all industries and sizes. To help highlight some of these changes for our clients, we’ve put together a list of the laws covering some of the most important changes, and some of the steps you can take to remain in compliance. Minimum Wage: As the minimum wage continues to inch towards $15, it’s important for employers to keep track of the incremental increases required each year. On January 1, 2019, the minimum wage will increase to $11 for employers with 25 or fewer employees and $12 for employers... READ MORE