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John Roberts, Jr., the United States chief justice, used a report on the federal judiciary to comment on the growing role of artificial intelligence (AI) in the legal profession. Roberts noted, “Proponents of AI tout its potential to increase access to justice, particularly for litigants with limited resources.”. The Chief Justice agreed that “[m]any AI applications indisputably assist the judicial system” in helping courts to resolve disputes.

Roberts also predicted that “human judges will be around for a while.” Similarly, while online chatbots may seem like a convenient alternative to hiring an attorney, the team at Structure Law Group encourages you to carefully evaluate your overall legal needs before relying solely technology.

What AI Is–and Is Not

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Running a business in Texas comes with inherent risks, including the potential for litigation. Lawsuits can be expensive and time-consuming, making it essential to take proactive steps to minimize risks and respond effectively when disputes arise. At Structure Law Group, our experienced Texas business litigation attorneys are here to guide you through the litigation process and provide proactive strategies to help you avoid lawsuits whenever possible.

With that in mind, here are a few general tips on how you can strengthen your business against the risk of lawsuits:

Properly Structure Your Business

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At first glance, starting a business might seem straightforward– simply completing an application and remitting a fee to the California Secretary of State to incorporate. However, the reality is that starting a business entails a lot more complexity, particularly when it comes to legal matters. The process extends well beyond basic registration, encompassing a detailed understanding of regulations, compliance requirements, and a multitude of legal intricacies that must be meticulously managed. Providing guidance through the process of business formation is a service that is legally reserved for corporate attorneys. Additionally, a multitude of questions typically arise during the establishment of a business in California, each requiring careful consideration and legal expertise to navigate effectively. This is where the San Jose start-ups and financing lawyers at SLG have proven invaluable in assisting numerous clients to launch their new business ventures successfully.

Starting a new business in California’s dynamic and innovative economy is an exciting endeavor. However, this process involves navigating a complex set of legal rules that can be quite challenging. Here are key reasons why it’s crucial to consider hiring a lawyer when you’re setting up a new business in California:

Selecting the Right Business Structure for your San Jose Startup and protect your personal assets

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A merger or acquisition is one of the most complex transactions that a Texas business–or, in this case, multiple Texas businesses–can enter into. There is no such thing as an “impulse buy” when it comes to M&A. Both sides need to perform “due diligence” before closing a final deal.

Mistakes during the due diligence process can lead to significant problems for all parties involved. That is why working with an experienced Texas mergers and acquisitions attorney is essential. The team at Structure Law Group can help protect your company’s interest while negotiating a deal and performing the necessary due diligence to help you avoid potential lawsuits down the line.

What Is “Due Diligence”?

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A successful California business lives or dies by its brand. Your corporate name, logo, and slogan are often the first things a customer associates with your business. So it is crucial to protect your branding through the use of trademarks. The experienced California trademark attorneys at SLG offer a full range of legal services designed to help your business in this area.

What Does a Trademark Do (or Do Not Do)?

Although the term “trademark” is used broadly in everyday conversation, there are actually two types of marks used in branding–trademarks and service marks. A trademark is used to describe physical goods and products, while service marks describe services. For the sake of simplicity, we will just refer to both as “trademarks” in this article.

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Most Bay Area businesses aim to embrace diversity and inclusion as integral parts of their core values. However, these objectives are often not well-defined. For instance, a company might be committed to diverse hiring in terms of gender and ethnicity, but they may still face challenges in fostering inclusion. Additionally, many managers find it challenging to measure and communicate the precise benefits of diversity and inclusion to their superiors or board.

At Structure Law Group, we believe that diversity and inclusion are not just marketing buzzwords. Rather, they are goals that many businesses must meet for professional and legal reasons. The Silicon Valley employment attorneys at Structure Law Group can advise you on this and other issues related to the recruitment and management of employees.

How Diversity Can Drive Your Business to Greater Success

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AdobeStock_1394708708-300x200Numerous entrepreneurs in Texas believe they have ideas capable of evolving into billion-dollar startups. However, transforming these ideas into viable businesses involves careful planning. Several key steps must be taken before these startups can officially launch or become attractive to potential venture capital investors. This process ensures that the foundational aspects of the business are well-established and ready for growth and investment.

If you are looking to start your own business, we recommend contacting an experienced Texas startup and financing attorney. At Structure Law Group, our legal team can guide you through every stage of getting your new business off the ground. We can help you translate your long-term vision into a series of practical steps that will hopefully lead you to profitability and success.

What You Need to Do Before Opening for Business

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AdobeStock_971319782-300x200We often see business owners ignore corporate formalities after incorporating their businesses. They labor under the misconception that forming a corporation[i], provides them with a full-proof shield from personal liability, despite how they conduct corporate affairs post incorporation. Many are not aware of the doctrines of “piecing the corporate veil” or “alter ego”. In this blogpost, we discuss briefly why corporate formalities are important to follow— owners of incorporated businesses must follow corporate formalities to ensure protection from personal liability.

Why corporate formalities are important to follow? The short answer is because following corporate formalities ensures the separateness of identity between the corporation and its owners is maintained. This is essential to ensure personal liability protection for the owners. Under the corporate statutes of all jurisdictions, after a corporation is formed it is treated as a separate “person” distinct from the owners holding interests in it.  This separateness of legal identity shields the corporation’s shareholders, officers, and directors, from personal liability from the debts and obligations of the business. However, the important caveat is this protection is available only if steps are continuously taken through observing of corporate formalities to maintain the separateness of the corporate entity from its owners.  If owners do not observe corporate formalities and run their business like a sole proprietorship (or partnership in case of more than one owner) and if a creditor or an obligee of the business sues to hold the owners personally liable, a court will likely disregard the corporate shield to hold the owners personally liable. This is the so called “piercing the corporate veil”—a doctrine under which the courts can disregard the corporate entity and hold its owners personally liable for the corporation’s debts and obligations. In California this is done under the “Alter Ego” doctrine. Under this, a court will hold business owners of a corporation personally liable if it finds (a) a unity of interest and ownership between the corporation and its owners (that is these owners have treated the corporation as their “alter ego” rather than as a separate entity); and  (b)  it will be an inequitable result if these acts are treated as those of the corporation alone and failing to hold shareholders accountable would sanction a fraud or promote injustice.  Burden of establishing alter ego liability is on the plaintiff creditor.  Therefore, mere incorporation of a business will not shield its owners from personal liability if they have failed to follow corporate formalities post-incorporation.

So, what are considered corporate formalities? Some of the many examples of corporate formalities that must be observed to ensure owners are shielded from personal liability are:

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AdobeStock_839026665-300x200A founders’ agreement is a contract between co-owners of a business that outlines each of their roles and responsibilities, ownership interests, and rights in the business. It may be a standalone document or may be incorporated into a shareholders’ agreement, a partnership agreement, or an LLC agreement.  In this piece, we focus on pre-incorporation founders’ agreement—the first document we recommend be put together just as soon as two or more persons get into business together as co-owners. This will help protect the interests of each co-owner and avoid any potential disputes among them later.

So, what should founders include in a pre-incorporation founders’ agreement? Although the answer will vary depending on the line of business, a typical pre-incorporation founders’ agreement includes these items:

  1. Name of the parties and (potential) name of the business: The agreement should identify each party that will be bound by it. If the founders already have a name lined up for their business that should also be included in this agreement.
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AdobeStock_1329871997-300x200Alternative Dispute Resolution (ADR) offers a great way to settle disputes without stepping into a courtroom. Two of the most popular methods of ADR are mediation and arbitration. Both provide efficient, private alternatives to traditional litigation, but they are quite different when it comes to the process and the results. Understanding these differences is key when deciding which option works best for your situation.

Benefits of ADR

Both mediation and arbitration share some key advantages over going to court:

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