Starting a business with a partner often begins with shared vision and trust, but when things fall apart, the emotional and financial fallout can be especially intense. Whether the split is amicable or contentious, having a legal roadmap is essential. In this article, we’ll explore… How to navigate business partner disputes in California. What rights you have as an owner of the business. How to protect intellectual property and company assets during a breakup. What Legal Rights Do California Business Owners Have When A Partner Wants Out? Shareholders in a California business, especially those with a significant ownership stake, have important rights. Chief among them is the right to inspect corporate records and financial documents. This helps ensure transparency and provides a clear picture of the company’s standing during a transition. However, these rights often depend on how much ownership the departing partner holds. Majority shareholders have more control and…Read More
Early hiring decisions can make or break a startup, especially in California, where employment laws are complex and favor workers. Many tech founders jump into hiring based on excitement, personal trust, or urgency, but skipping over legal formalities can lead to serious and costly consequences. In this article, we’ll cover… Insights on the most common early hiring legal mistakes startups in California make. The differences between employees and independent contractors, and why this matters. How to properly use NDAs to protect your new business in California. Why Is It Risky For California Tech Startups To Hire Without Written Employment Agreements? California is a pro-employee state, which means the law tends to favor workers in disputes. Without a written employment agreement, employees may later claim they were denied overtime, entitled to benefits, or improperly terminated, and there may be little you can do to protect your company in those situations. Founders…Read More
In this article, you can discover… How community property laws can impact assets in a divorce. Whether placing your business in a trust can help protect your business in a divorce. What happens when your adult child mixes business assets with their marital assets. How Does California’s Community Property Law Impact Business And Real Estate Ownership In A Divorce? California is a community property state, meaning that any income or assets acquired during a marriage are typically considered shared and split 50-50 in a divorce, even if one spouse played a more active role in acquiring or managing them. That includes businesses or real estate that grow significantly in value during the marriage. Even if a business starts small and grows through one partner’s efforts, it may still be considered community property if that growth happened during the marriage. In your effort to protect a family business from divorce in…Read More
In this article, you can discover… California legal loopholes that can endanger your family’s assets. How poorly structured estate planning documents can threaten wealth. The benefits of working with a seasoned estate planning attorney. What Are Common Legal Loopholes In California That Put Family Wealth At Risk During Estate Planning? Estate planning loopholes in California abound, but most are unaware of them. As such, one of the biggest mistakes people make is assuming a will is enough to avoid probate. In California, if your assets exceed $184,500 and you only have a will, your estate will still go through probate court, which can be incredibly costly, stressful for your family, and time-consuming. Probate is also a public process where creditors and 3rd party fraudsters and estranged family members may try to claim something from your estate. Another common issue is not properly funding a trust. Even if you set up…Read More
In this article, you can discover… The various ways prenuptial agreements can help protect your family assets. How a postnuptial agreement can impact life after marriage. How an estate planning attorney can help coordinate trusts and prenuptial agreements. How Does A Prenuptial Agreement Protect Family Assets In Estate Planning Under California Law? California is a community property state, which means that any income or assets acquired during a marriage are generally considered to be owned equally by both spouses. When dividing property and debts during a divorce, the law typically requires a 50-50 division of those assets. However, a prenuptial agreement allows couples to make alternative arrangements. If both parties are represented by their own attorneys and the terms are fair, a prenup can specify how assets will be divided, overriding the default community property rules. This can help protect family assets and clearly define what belongs to each party…Read More
In this article, you can discover… The differences between community property versus separate property. How California law defines “inherited assets”. How redefining assets can be helpful, and how an attorney can assist. What Is The Difference Between Community Property And Separate Property In California Inheritance Law? In California inheritance law, community property and separate property are vastly different, so it is incredibly important that you understand the differences when determining how assets are owned and distributed. So, before we get into it all, let’s quickly define what they are. Community Property This is any income or assets earned during the marriage, and is automatically shared equally between spouses. As such, neither spouse can unilaterally gift or transfer community property without the other's consent. Separate Property This encompasses assets acquired before marriage, after divorce, or received as a gift or inheritance. By extension, they remain the particular individual’s separate property, giving…Read More
In this article, you can discover… The legal steps involved in restructuring a California business. How restructuring can impact licensure and permits. How proper legal guidance can help you avoid pitfalls and risks during restructuring. What Are The Legal Steps Involved In Restructuring A Business In California? The first step we take is understanding your goals and your reasons for restructuring. This could be due to tax considerations, reducing certain fees, moving to another state, or accommodating business growth. For example, a business transitioning from a small operation to one with multiple partners or seeking investment may need to restructure to attract investors or align with industry norms, such as forming a Delaware corporation. Once your goals are clear, we determine the type of restructuring and handle the legal requirements. This often involves securing proper consent, such as board or member consent, depending on the entity type. There may also…Read More
In this article, you can discover… How overlooking a license can negatively impact your business Common tax errors new business owners make and how to avoid them How the right legal guidance can help you avoid fines and complications How Can Overlooking A License Affect A New Business? Overlooking licenses can significantly impact a new business. Licenses may be held by third parties or classified as open-source, allowing others to utilize them. Without proper agreements in place, disputes over ownership and usage rights can arise. To prevent this, you need to establish clear terms with any third parties you’re dealing with and document them in corporate agreements, such as intellectual property transfers or license agreements. Why Is Failing To Draft An Operating Agreement In Los Angeles A Mistake? An operating agreement sets the rules for an LLC, defining how your company operates and resolving potential disputes. Without one, disagreements among…Read More
In this article, you can discover… What digital assets are, and how to pass them on to beneficiaries Whether a power of attorney can manage digital assets for you How to protect your digital intellectual property What Are Digital Assets? Are They Recognized In California? Digital assets include things like cryptocurrency, NFTs (Non-Fungible Tokens) (which may be stored in separate wallets or devices with encryption that makes third-party access challenging), digital media, Software and Code, Domain Names and Intellectual Property. In California, digital assets are recognized as part of estate planning, and our documents include provisions to address them. If you’re concerned about your digital assets and ensuring they are properly managed, you should reference specific details about them in your trust documents to ensure clarity and protection. Which Digital Assets Can Legally Be Included In My Estate Plan? All digital assets can be included in your estate plan. Typically,…Read More
Questions To Prepare For Meeting With An Estate Planning Attorney During your initial consultation, your estate planning attorney will likely ask you some questions to understand your situation and goals, including things such as: If married, are you and your spouse on the same page? Do you want your assets to go to specific people, such as any children you may have? Are there any concerns about the responsibilities of your trustee, executor, or guardian? What is your citizenship status? What is the citizenship status of your trustee? (It’s preferable that the trustee be a U.S. resident and at least a green card holder to avoid potential negative tax implications, especially for those who have recently arrived or are not permanent residents.) What is the value of your estate? Is it close to the federal tax exemption? (This exemption changes frequently, so the attorney will consider the total value of…Read More
