Generally, a business owner cannot be held personally liable for the liabilities of his or her business if the business is a corporation or limited liability company. However, there are situations in which courts will hold an owner personally liable. The below list, while not complete, highlights the seven most common causes of personal liability. Bank Loans New business owners are typically required to provide to personal guarantee for bank loans. To the extent the…
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In the current age of technology and necessary online presence, most businesses need a website to survive. If your business does run a website, you must ask yourself this question: do you need a privacy policy?Unless your website is non-interactive, such as a blog, the answer will be “yes.” The California Online Privacy Protection Act applies to any person or company whose website or mobile application collects “personally identifiable information”from California consumers. It requires the…
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If your business has multiple owners, you need a sound buy/sell agreement in place. A buy/sell agreement is a contractual document between the owners or shareholders that creates rules for what will happen if and when one of the co-owners die, becomes disabled, needs to transfer his or her share, or decides to leave the company. A buy/sell agreement is a business planning tool designed to avoid negative outcomes if a misfortune happens. An experienced…
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Both private equity and venture capital are terms used to describe ways that investors acquire an interest in privately held companies as opposed to investing in public companies (like those listed on the New York Stock Exchange or Nasdaq). What follows below is a brief explanation of the difference between venture capital and private equity.No matter what type of investment you are seeking for your business or entrepreneurial endeavor, advance planning, research, and working with…
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Corporate Bylaws are rules and regulations adopted by your corporation’s board of directors to provide a framework for its operation and management. Bylaws can be crucial in preventing misunderstandings between the owners of a company regarding how the company is being managed and are too often treated as a boiler-plate document.A corporation’s Bylaws should not be confused with its articles of incorporation, which is a public document and must be filed with the secretary of…
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Companies can now offer and sell securities through crowdfunding. The Securities and Exchange Commission (SEC) recently gave the green light under Title III of the Jobs Act. Companies interested in offering and selling securities through crowdfunding should discuss with a qualified business lawyer in Los Angeles, who can explain the new SEC rules regarding crowdfunding. What is crowdfunding? Crowdfunding is a new and growing method to fund business projects. Crowdfunding uses easily accessible outlets, such as…
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Businesses should be very cautious when revealing sensitive and confidential information to employees or outside parties. While everyone may say they will keep your information in confidence with a firm handshake and smile, they may not always honor their word. They may steal your trade secrets, ideas, and other sensitive data and manipulate them to make it appear that they were the originators of the idea, product or service. One way to protect yourself and…
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One thing employers can expect from their employees is the request for a leave of absence. There are laws in place to protect employees who need to take time off. The federal Family and Medical Leave Act (FMLA) allows an employee to take time off to be a caregiver or handle health or medical related duties that might keep them from performing their regular jobs. There are a few states that have created their own…
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Intellectual property should not be a concern for just large businesses and big corporations. Small businesses and startup operations should know the value and importance of intellectual property and its impact on business success as well. Intellectual property is important at every stage of business development. Many small businesses or young entrepreneurs do not understand the various types of intellectual property and the protections they can bring to their products, services, and company. Not knowing…
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