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AdobeStock_503316415-300x200If you have established, or are thinking about forming, a corporation in California, then you’ll need to create a set of corporate bylaws. This may sound like an unnecessary formality – especially if you are a start-up with just a handful of shareholders and employees. However, no matter the size of your corporation, bylaws are a necessity that can help protect you and your business. The experienced Los Angeles corporations lawyers at Structure Law Group can assist you in preparing corporate bylaws that will help keep your business on the right legal path.

The Purpose of Bylaws

Corporate bylaws serve as the governing rules for managing a corporation. A corporation’s board of directors is responsible for adopting, revising, and repealing bylaws. While the bylaws don’t need to cover every minute detail of the corporation’s day-to-day operations, they should provide a fundamental “roadmap” for how the business will be conducted.

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AdobeStock_742719368-300x86As with personal relationships, business partnerships can also reach their conclusion. This can be a planned event or an unexpected change, such as a partner’s death or retirement, which necessitates winding down the partnership. In such situations, the Silicon Valley partnership attorneys at Structure Law Group can provide expert advice on how to dissolve a business amicably and on good terms.

Why Do California Partnerships Dissolve?

The reality is that most Silicon Valley businesses do not last indefinitely. This is especially true of partnerships, which depend on the ongoing participation of the individual partners in the business. There are several reasons a partnership can dissolve, including but not limited to:

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AdobeStock_505784791_Editorial_Use_Only-300x200Although platforms like Slack and Teams have become indispensable tools for modern collaboration, their widespread adoption raises crucial legal and compliance challenges for organizations. These platforms store a vast amount of user data, including messages, files and even employee metadata. They are subject to stringent data privacy regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). The GDPR has stricter regulations for EU citizen data privacy, demands explicit opt-in consent and grants extensive data subject rights like access and erasure. On the other hand, the CCPA, which is focused more on California residents, prioritizes data transparency and consumer control through access, deletion and opt-out mechanisms for data sales. Yet/overall, both regulations emphasize the importance of user empowerment regarding their data, requiring organizations to implement robust data protection measures and obtain informed consent for data storage and usage.

While conversation platforms offer significant collaboration benefits, their use necessitates navigating data privacy and compliance complexities. As such, organizations must prioritize user rights by:

  • Informed User Consent: Organizations must obtain explicit user agreement for data storage and usage. This involves clearly outlining the types of personal data collected, the purpose of collection, and how the data will be used in accordance with data privacy regulations.
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AdobeStock_711416963-300x200Acquisitions can significantly enhance a company’s capabilities and market reach, but they also can bring substantial cybersecurity and privacy risks. These risks are particularly pronounced in states like California and Texas, where more stringent data protection requirements and privacy laws apply. Properly addressing these risks is critical to ensuring a smooth transition and maintaining compliance with legal requirements. This article highlights some factors that mitigate post-acquisition cybersecurity and privacy risks, including document retention, records management, legal preservation, and data privacy.

Document Retention

Document retention policies are crucial post-acquisition to mitigate cybersecurity risks and ensure legal compliance. In California, under the stringent provisions of the California Consumer Privacy Act (CCPA) companies must retain personal data only for as long as necessary for disclosed purposes and securely dispose of it thereafter. Similarly, Texas, under its Business and Commerce Code Section 521.052, mandates the protection and proper disposal of sensitive personal information, emphasizing the importance of employing secure document destruction methods. Key strategies include identifying critical data for long-term retention, aligning retention policies with state-specific requirements to avoid penalties, and implementing secure disposal methods to safeguard against unauthorized access to sensitive information.

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Artificial Intelligence (AI) and generative AI have been revolutionizing various sectors, and the legal industry is no exception. The deployment of these technologies is transforming how legal professionals operate, enhancing efficiency and opening new avenues for creative problem-solving. The use of AI in the legal domain encompasses a diverse range of services:

  1. Legal Research Using Specialized Technology Legal research can be time-consuming. AI-powered legal research platforms like Co-Counsel can analyze and summarize vast amounts of legal data to identify statutes, and regulations. These technologies can sift through databases to find relevant information quickly. By leveraging natural language processing (NLP) and machine learning algorithms, these tools help lawyers build stronger cases faster using fewer resources.
  2. Rewriting Emails and Letters Generative AI excels in tasks involving language generation and rewriting. Lawyers frequently draft, revise, and personalize emails and letters. AI can assist by providing polished drafts, suggesting edits, and ensuring that the tone and language are appropriate for the intended audience. This not only saves time but can enhance the clarity and effectiveness of communication.
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AdobeStock_38444038-300x201Business Partnership Lawsuits — Disputed Between LLC Members, Shareholders, General Partners, or Limited Partners

Nobody enters a business partnership or relationship expecting to end up in litigation, but disputes may arise that can only be resolved through a formal legal process. If you are involved in such a lawsuit, the San Jose partnership lawyers at Structure Law Group can provide you with professional advice, guidance, and representation throughout the process.

Why Partnership Lawsuits Happen

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AdobeStock_558703638-300x169When it comes to forming a new startup, a California limited liability company (LLC) offers a number of advantages. As the name suggests, an LLC protects the personal assets of individual members from business creditors. And since the LLC is a “pass through” entity, any profits are taxed on the returns of individual members.

But while this arrangement may be ideal for founder-run startups with just a few equity holders, once the business seeks financing from venture capital or other investors, it is often necessary to convert to a corporation. More precisely, a California LLC may need to convert to a Delaware Corporation. The California corporations attorneys at Structure Law Group can advise you on the benefits and drawbacks of making this move. Contact us today to schedule an initial consultation.

When Is a Conversion Necessary?

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AdobeStock_79495533-300x200Business disputes arise for many reasons. For example, a vendor might have a unpaid invoice that is several months overdue. Or an insurance company may refuse to pay on a claim after your factory suffered fire damage. Or perhaps you recently had a fallout with a partner and have been going back-and-forth on how to separate them from the business.

At a certain point in the process, you may need to send a formal document known as a demand letter to try and break the logjam. Conversely, another party may send you a demand letter. In either case, it is always best to work with an experienced California business litigation attorney who can advise you of your rights and responsibilities when it comes to demand letters. The team at Structure Law Group assists many California businesses in this area, and we can put that expertise to work for you.

How a Demand Letter Works

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AdobeStock_600446210-300x200Anytime you wish to file a lawsuit against someone in California, you need to be mindful of the statute of limitations. This is the legal deadline for initiating action on a particular type of claim. Failure to comply with the statute of limitations often means your case will be dismissed without consideration of the merits.

An experienced California business litigation attorney can help ensure that you meet the statute of limitations and all other legally mandated deadlines in your lawsuit. The last thing you want is for your case to be thrown out of court before it has even begun. The team at Structure Law Group can guide you through this process and make sure that does not happen.

What Are the Deadlines?

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AdobeStock_750357071-300x200The rapid evolution of artificial intelligence (AI) is reshaping the world through new trends, regulations, and shifts in user behavior. While AI offers numerous benefits, it also introduces significant risks, particularly concerning accuracy, accountability, data privacy, and security. By proactively implementing mitigation strategies, businesses can harness AI’s potential while protecting their operations and reputation. Below, we explore key considerations for deploying AI across business processes while minimizing legal and regulatory risks.

AI Accuracy and Accountability

A major obstacle to fully realizing AI’s capabilities is concerns about its accuracy and accountability. The core of this issue lies in the quality and quantity of the data used to train AI models. The accuracy of AI models directly reflects the data sets they are trained on. If these data sets are biased or inaccurate, the resulting algorithms can perpetuate hidden discrimination against certain groups. This lack of transparency raises questions about the reliability of the output data, which can be misleading, biased, or incorrect.

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