Preference related to creditor’s rights issues. If a company files for bankruptcy, the matter is turned over to a bankruptcy trustee who takes control of the debtor’s estate. In the case of the company, they have powers over the company. Preference specifically deals with voiding transactions within the last 90…
In general, shareholders are protected from liability for the debts of the corporation. This is because the corporation is viewed as a separate legal entity with its own assets and liabilities. This “corporate veil” of protection can, however, be pierced in certain situations, and personal liability imposed on the shareholders.…
In November 2020, California voters approved what is arguably the most comprehensive privacy rights law in the nation. The California Privacy Rights Act does not take effect until January 1, 2023. But its requirements are far-reaching, and California business owners have a lot of work to do to prepare their…
A corporation can be formed under the laws of any state, so long as the business and its owners qualify for business entity status. Many business owners use these laws to find a state that offers the most tax and legal advantages. (This is why so many businesses incorporate in…
Of the many challenges faced when starting a business, creation of a company’s bylaws can be one of the more complex, technical, and overwhelming challenges of them all. While daunting, such agreements can protect startup companies from liability in business transactions. A Silicon Valley corporate lawyer can help your business…
Mergers and acquisitions (M&A) are complex business transactions with much on the line. If a merger or acquisition is not successful, a business can lose substantial assets. Of course, no one would intentionally enter into an acquisition transaction knowing it would fail; however, reports have indicated that more than half…
Limited liability companies, or LLCs, are one of the various types of business entities from which you can choose when forming a company. Generally speaking, limited liability companies combine the tax advantages and flexibility of a partnership with the liability protections of a corporation, without subjecting small business owners to…
There are many California requirements for an investor to be a holder in due course. A holder of an instrument is entitled to enforce the instrument. However, a “holder in due course” has greater rights under the Uniform Commercial Code (UCC) and the California Commercial Code (COM) than a holder…
Often, selection and formation of a startup can be stressful and confusing. But it is not the end of the process. In order to protect your startup and its status, many steps must be followed to continue to ensure the startup remains in good standing with local and state laws.…
When multiple individuals begin conducting business together, they may have effectively created a partnership, even if they didn’t intend to do so. Thus, even though partnerships can be formed without the partners actually signing a partnership agreement, the partnership and its partners become subject to state laws governing partnerships. The…