Every day more companies move towards cloud computing, but recent cyber-attacks have raised questions about security and reliability. Several other legal considerations have been raised, and it is therefore important for businesses considering this path to make sure to weigh the legal factors as well as cost benefits. There are many reasons why companies are switching to cloud computing. According to the National Law Journal, some experts think that cloud computing could cut corporate IT costs by...

A Mechanics' Lien is a statutory remedy most often used by contractors and subcontractors.  Nearly anyone who contributes labor or materials to a real estate improvement project can use a mechanics lien as a mechanism to resolve issues with receiving payment.   What is a Mechanic’s Lien? Specifically, California law allows the use of a Mechanics' Lien to exact payment by placing a lien on the property.  The existence of the lien on the property inhibits the property owner’s...

The legal conflicts that businesses most often face are contract disputes, financial disputes, and employer-employee issues. If your business is facing such a conflict, it will be encouraging for you to know that most of these disputes can and are resolved without going to court. Alternative dispute resolution ("ADR") can save your business a lot of time and money if you utilize it as a means to resolving your legal issues. There are many...

There are many reasons to consider selling a business, and there are just as many things to consider before and during the process. To streamline a sale, it would be helpful to be (or get) highly organized, making sure all assets are in order, the logistics of an exit strategy are in line, and all legal forms are squared away. There will be a lot to do to prepare for the sale, so the best thing to do is...

Buying a business requires a significant undertaking during which you will want to do your best to protect yourself and navigate around risks and hidden issues. This will include hefty market research, financial analysis, and of course legal advice.  Every transaction is unique, and there will be different considerations for different business types, but there are some general steps that each buyer should take when buying a business or assets. Investigate Prior to Buying a Business Once a buyer...

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...

California law treats residential and commercial leases very differently. Generally, commercial tenants receive less legal protections than residential tenants. It is therefore critical for both landlords and tenants to be very familiar with the terms of a commercial lease, and not just assume that the same standard provisions are provided in each agreement. Residential Lease Agreement For starters, a residential lease agreement is a contract between a tenant and a landlord to use property for living. The agreement is usually...

California law requires landlords to make certain mandatory disclosures to tenants, most of which are usually found in the lease or an addendum to the lease, and generally concern the health and safety of potential building inhabitants. It is important for both landlords and tenants to be aware of the mandatory disclosures. If a landlord does not make a required disclosure, or fails to disclose dangerous conditions on the property, the landlord can later be...