One of the most important decisions entrepreneurs face when starting a new business is how to organize the new venture. Although the flexibility provided by a limited liability company (LLC) is enticing, California’s gross receipts tax is distasteful to many business owners. Moreover, the rigidity and formality of the standard…
A 2011 decision by a federal court highlighted the applicability of a legal theory known as the business judgment rule to corporate officers in California. Codified at section 309 of the Corporations Code, the business judgment rule establishes a presumption that a corporate director, in the performance of his or…
A security is a financial instrument or a tradable asset of some type. The Federal Securities Act defines a “security” as a laundry list of items which can be boiled down into three broad categories: Debt securities (banknotes or bonds). Equity securities (stocks or interests in partnerships or limited liability…
Continued from “The Commercial Lease and Your New San Diego Business“. Perhaps one of the most important aspects of starting a new business is the hiring of employees. Employees are often both the face and backbone of any company and their hiring comes with a host of legal obligations, liabilities,…
“Sweat equity” allows individuals with little or no capital to obtain ownership in a business, usually a partnership or California Limited Liability Company (“LLC”), by trading labor for equity. It allows individuals with financial capital to partner with others who have expertise in a particular field for the purpose of…
One of the most important decisions a person wishing to start a business will face is how to organize the new venture, i.e. whether as a corporation or a limited liability company (“LLC”). If the decision is to form an LLC, there are a number of steps that need to…
It is said that only two things in life are certain, death and taxes. While everyone is required to pay local, state, and federal income taxes, business owners are generally subject to an additional burden – the self-employment tax (more commonly known as social security and Medicare taxes). Self-employed…
One of the most important decisions individuals wishing to start a business face is how to organize the new venture under the laws of the state in which it is located. Two of the most common ways to organize a business is as a corporation or a limited liability company…
Maybe you’ve formed a business partnership with high hopes, only to later realize that it just isn’t working out. Circumstances change and people move on. You might want out, your partner might want out, or maybe you both want out. Whatever the reason and whatever your goal, you have options.…
It is common for entrepreneurs to get excited about new business ventures. They often move forward with forming a formal business entity such as a California Limited Liability Company (“LLC”) believing that all of the elements of success are in place. They hire a San Diego business lawyer to set…