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Huntington Beach Business And Real Estate Law Blog

Moving cautiously and carefully in the business formation stage

Starting a business in California is an exciting process, but it is also an expensive and legally complex endeavor. There are important decisions to make during this process that will impact the operations of a business for years to come. There are a few significant things that an owner would be wise to consider during the business formation stage that will help him or her avoid problems and lay the foundation for a strong future. 

Choosing a business entity is one of the most important choices that a business owner will make during this process. This is structure for the company that will affect things such as taxes for the business and the personal liability of the owner. Business partners, long-term goals and potential ramifications are all important factors when making this decision.

What a commercial landlord can not do when evicting a tenant

A tenant that doesn’t pay rent or ignores terms of the lease can be very frustrating for a landlord. Not only might it mean a significant blow to their income, but it can even affect the overall health of the property.

There is a way to evict a commercial tenant, but it requires landlords to follow a clearly defined legal process, with specific dos and don’ts.

Writing contracts to ensure that businesses get paid

When it comes to legal agreements, it's important for a business to take the time to ensure that the terms of the agreement meet its needs and allow for continued cooperation between the two parties. One of the most difficult challenges that a California company may face is securing payment from clients. Strong contracts can help a company get payment from its customers and clients in a timely manner. 

One important note is to ensure that any contract clearly spells out the terms of the sale and what actions should trigger payment from a customer. It will also help to ensure that a contract clearly spells out the time frame in which a company is expected to deliver a product to a customer and when payment is expected. Clarity of these types of terms can reduce the chance of continued conflict and problems in the future. 

Planning for the future during the business formation process

It's impossible to predict the future, but there are specific things that business owners can do that will protect their long-term interests. One of these things includes implementing certain plans and procedures during the business formation process that will go into effect in the event of their sudden death. California businesses can suffer greatly if their leadership passes away, and there are certain things an owner can do to ensure continued operations.

An example of this happened recently to a small business in another state. The owner unexpectedly passed, and his family was left scrambling, trying to decide what to do with the company. One member of the family stepped in and began to pick up the pieces, but it was a difficult period for everyone as they were grieving their loved one while also working through business-related issues. He did not have a succession plan in place, and it led to significant complications for those left behind.

When should a business include an NDA in employment contracts?

Businesses can take certain steps to ensure important information is protected and they secure the specific things that give them a competitive edge over California competitors. One option involves employment contracts, and for some businesses, this means including nondisclosure terms in the contract or writing separate nondisclosure agreements for employees to sign. NDAs can be useful tools for various types of businesses.

These contracts allow a California business to keep its important information safe in the event that an employee who has access to this information leaves the company. It's a smart way to keep everything from client lists to secret formulas in the right place. Businesses of all kinds can benefit from NDAs, using these contracts to keep things like certain processes and pricing techniques private. Businesses have a lot of information that they probably do not want in the hands of another company.

Avoiding real estate litigation due to zoning law issues

When buying property in California for residential or commercial purposes, it is smart to be cognizant of the potential risks involved with that process. When there are problems with the transaction or the property, it can lead to financial loss and other risks. In order to avoid real estate litigation, a buyer will want to find out about the property's zoning classification and what that will mean for any goals for the land or building.

Zoning laws determine how an owner can use a specific piece of property. It can come as a surprise to a property owner that there are limits to what he or she can do. It refers to the local government's right to control development and keep certain areas separate, such as residential properties and industrial properties.

Strong contracts result in fewer employee disputes

California business owners understand the importance of reducing legal complications whenever possible. One way to do this is by having strong employment contracts. When carefully and thoughtfully drafted, these are tools that business owners can use to protect their legal interests and clearly outline each party's rights and responsibilities.

Employee contracts provide an explanation of what an employee can and cannot do, specifically when leaving the company. For example, a nonsolicitation clause can prevent a frustrated employee from encouraging others to leave the company or taking important information with him or her when leaving. Additionally, it is possible to include terms that will mandate all disputes to go through the arbitration process instead of heading straight to litigation.

What risks should I assume as a contractor?

In a construction deal, there are often several different parties involved. From designers to owners and contractors to sub-contractors, there are plenty of cooks in the kitchen. Because of this, establishing liability for different parts of the project is a crucial part of a well-conceived contract.

As a contractor, you should know what risks you should and shouldn’t be responsible for. This awareness and attention to detail can help you avoid disputes in the future.

Buy a business and bypass the business formation process

Starting a business can be an exciting step for California entrepreneurs, but it is not always the optimal choice for those looking to own their own business. In some cases, it is smarter to purchase an existing business than to navigate the business formation process. There are many benefits to taking this route, but a potential business owner will want to think carefully about the long-term implications of any choice regarding his or her business. 

One of the benefits of buying a business instead of starting one is that the buyer will obtain a proven business plan and be able to earn a profit faster. When it is not necessary to start a business from the ground up, an owner may see a faster return on his or her initial investment. It is important, however, to fully understand the type of business the company is and what that means for personal liability and taxes.

What does the CCPA mean for your business?

At this point, it’s clear your business needs to have an online component to succeed. Exactly what you do online will depend on your business, but you’ll almost certainly collect some forms of user data. That means you could be subject to the California Consumer Privacy Act (CCPA), so what do you need to know about it?

For starters, you should know that the law is currently a major point of discussion among lawmakers. Ever since the law was passed, people have been volunteering their wish lists of changes. Some want exceptions. Others want tighter restrictions and more clearly drawn guidelines for enforcement. But while these arguments may lead to changes of some details, it is less likely they’ll lead to any fundamental changes to the law.

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