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

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

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

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

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

Workers’ compensation insurance is designed to provide wage replacement and medical benefits to employees of a company who are injured while on the job. These benefits are provided to employees in exchange for removing their right to sue their employer for the injury (with some exceptions, such as injury caused by intentional misconduct of the employer). In California, all businesses with at least one employee must provide workers’ compensation insurance to their employees, and this benefit must not be subsidized by the employees. Executive officers and directors of corporations must be included in a company’s workers’ compensation coverage, unless the... READ MORE

Businesses are increasingly widening their hiring net to include individuals who are not U.S. citizens, including businesses in manufacturing, construction, tech, agriculture, and even the service industry. Employers looking to hire foreign nationals need to understand the basics of immigration law to make sure they handle the onboarding process appropriately. Businesses in California also need to be aware of new state laws that impact federal ICE inspections. Having an experienced business attorney on hand is also extremely important in dealing with immigration issues, as the laws here can get very complicated very quickly. Immigration Law Basics It’s easy for U.S.... READ MORE

A common pitfall for employers in California is not adhering to the state’s strict requirements to provide employees with appropriate meal and rest breaks. Non-exempt workers (as a general rule, this is anyone who would be entitled to overtime pay) are entitled to a 30-minute meal break on workdays that are longer than five hours and an additional 10-minute break for every (approximately) four hours worked. In other words, in a “standard” eight-hour day, employers should be providing their non-exempt workforce with at least two 10-minute paid rest breaks and one 30-minute unpaid meal break. Rest Breaks Though “one rest... READ MORE

Long before banks are willing to loan money, often when you first have an idea, you raise money from friends and family to start your business venture. Many a long-term successful venture begins this way, with an equipment budget gifted from grandma and supplies expenses from your dad in exchange for a little ownership. Even on slightly larger scales, this is one of the most common ways businesses raise their initial capital. After all, if your friends and family won’t give you money and assistance, you’re unlikely to get it from investors you don’t know or banks that just want... READ MORE

The U.S. has a number of anti-discrimination and harassment laws that prohibit businesses from discriminating against employees based on a number of factors including age, disability, race, sex, pregnancy, and citizenship. Title VII of the Civil Rights Act: Amended in 1991 to allow victims to recover damages, sexual harassment is defined as “unwelcome verbal, visual, or physical conduct of a sexual nature that is severe or pervasive and affects working conditions or creates a hostile work environment.” This includes when a person in authority is demanding sexual favors from a subordinate and when sexual comments or jokes create a hostile... READ MORE