If your business has been served with legal papers, it is important to act quickly, and determine whether you have been summoned or subpoenaed.
The information below assumes valid service and subpoena requests. Invalid service or an objectionable request may relieve the recipient from responding, appearing, or producing documents. It is therefore of vital importance to talk to an attorney to determine if you have been validly served and whether and how you should respond.
Summons...
A business should always be prepared for a lawsuit, and the best time to prepare for one is before any possible legal claims arise. Corporate compliance can go a long way in preparing for and avoiding a lawsuit. If a business has a self-monitored corporate compliance plan and audits its own practices consistently, it will not only avoid potential lawsuits, but have self-preserving support in the case of a lawsuit.
Organization
Organization is the most important...
An S Corporation (“S Corp”) is known as a pass-through tax entity because business profits are only taxed at one level: the owner’s personal tax returns. Partnerships and LLCs may elect to be taxed as an S Corp, but corporations’ profits are taxed pursuant to the owner’s personal tax returns and the corporation pays its own taxes. This feature makes an S Corp an attractive business entity for those considering formation.
S Corp
An S Corp...
Consumers love the convenience of new ridesharing startup companies such as Uber, Lyft, and Sidecar offer. With a few taps on your smartphone, you can have a car waiting for you within minutes. State and local governments, however, are less in love with these companies, and have been trying to halt their services around the country. Most recently, the California Public Utilities Commission sent letters to all three companies informing them that their ride-share services violate state...
In January 2014, California replaced its Limited Liability Company (LLC) law with the California Revised Uniform Limited Liability Company Act (RULLCA). RULLCA repealed the law that had governed California LLCs for two decades, and provides new provisions governing the formation and operation of limited liability companies.
RULLCA will govern all California LLCs organized on or after January 1, 2014. The new law made several new changes to the formation process of an LLC. For example, if the...
On September 10, 2014, California Governor Jerry Brown signed AB 1522, a law requiring public and private employers to provide their employees with at least 3 paid sick leave days per year. It is very important that employers begin implementing paid sick leave policies to make sure they are compliant with the new law, which goes into effect in July 2015.
Under the new law, most employees will be entitled to one (1) hour of...
There are a number of options when it comes to choosing a business entity for a particular organization or business venture. Business owners and entrepreneurs can greatly limit their personal liability by forming a business entity or reorganizing a business. Which entity is best suited to a particular owner, organization, or business venture will depend on evaluating which entity is most aligned with their business model and objectives. In California, entity options include a...
