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Understanding Alter Ego Liability

Posted by Posted in Risk & Asset Protection
As a general rule, shareholders of a corporation are shielded from liability for the debts incurred by the corporate entity. This protection from liability exists because a corporation is treated as a separate, independent, legal entity from its shareholders capable of accruing assets and incurring liabilities. Basically, when you incorporate a business in California or any other jurisdiction, a “corporate veil” will drape over the business that protects you and any other shareholders from being…
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Business lawyer in Los Angeles

The Difference between Stock Options and Stock Warrants

If you started a business, or recently joined a startup, there is a strong likelihood that a portion of your overall compensation package (or the compensation package offered to new hires) will include stock options and/or stock warrants. It is important to understand the key differences between these stock instruments to ensure comprehension of what will follow when a stock option or stock warrant is offered to a new employee, or as an investor on…
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What to Do if the Other Party Breaches your Contract

Posted by Posted in Contracts & Agreements
No matter the type of business you own or manage, contracts are certainly a daily, and integral part of business. With every contract there is always the possibility of the other party breaching the contract, regardless of the terms and relationship. Breaches of contract always run the risk of harm to your business, so it is important to work with an experienced business lawyer in Los Angeles to protect your business in the event of…
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Your Business May Need a Buy/Sell Agreement

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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The 4 Elements of Letter of Intent

Posted by Posted in Contracts & Agreements
Like any other contract or written agreement, letters of intent are important business documents that record the terms discussed in negotiations for a particular transaction. Accomplishing a variety of business objectives, when writing a letter of intent, one wants to make sure to include the following four elements: Terms and Condition In most situations – other than for buyers of a business – letters of intent should establish as many details as possible to describe…
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