In response to the unprecedented challenges presented by the Coronavirus pandemic, several Federal and State laws have been passed to assist businesses during these difficult times. Some cities have enacted ordinances, and certain companies have announced programs to assist their customers in dealing with the impact of the COVID-19 virus. These programs include:
Federal Programs
The U.S. Business Administration (“SBA”) has implemented the Paycheck Protection Program, which provides $349 billion in administered loan and loan forgiveness relief to small businesses in financial need. Small businesses with less than 500 employees are eligible to participate in the program, in addition to sole proprietors, independent contractors and self-employed individuals. The Paycheck Protection Program offers loans up to $10 million for business expenses including payroll, rent, mortgage interest, utilities, and certain group health plan fees. Business that elect to participate in the program are not required to provide collateral or show that their financial hardship is related to the COVID-19 crisis. The Paycheck Protection Program offers a 6-month grace period in which lenders are obligated to defer loan payments. Further, business that use their loan on payroll, rent, mortgage interest, or utilities in the 8-week span after the loan is funded can be forgiven up to the full amount of the loan. This forgiven amount is considered taxable income. The Paycheck Protection Program will expire on June 30, 2020.
Call an Experienced San Jose Business Lawyer Today
To schedule your consultation with one of our San Jose business attorneys, call Structure Law Group, LLP today at 408-441-7500 or contact us online.
Due to the COVID-19 pandemic, many non-essential businesses have been shut down, resulting in an unprecedented economic downfall for many employers. In efforts to provide relief for employers, the government has passed the CARES Act, which will allow employers to save costs by deferring their Social Security payroll tax (6.2%) payments. This deferral period applies to employee wages accrued between March 27, 2020 and December 31, 2020. Once the deferral period has passed, the employer will be obligated to pay the “deferred amounts” to the U.S. Treasury in two installments. The first half of the deferred amount of payroll taxes will be due on December 31, 2021, while the remaining half will be due on December 31, 2022. The CARES Act also applies to all employers regardless of their sizes, including individuals who are self-employed. The only exception is employers who have already received Small Business Act loans that are forgiven under the Cares Act. These employers do not qualify for the payroll tax deferral.
Contact Structure Law Group at (408) 441-7500. Our experienced Silicon Valley business lawyers know how to prevent business disputes and proactively address other business issues.
In response to the COVID-19 pandemic, the U.S. Small Business Administration (“SBA”) has agreed to disburse Emergency Economic Injury Grants of up to $10,000 to companies experiencing financial struggles. Small business owners that apply for an Economic Injury Disaster Loan are eligible to receive the grants, which do not need to be repaid.
The SBA’s Economic Injury Disaster Loan provides small businesses with working capital loans of up to $2 million that provide crucial economic support to businesses dealing with loss of revenue due to COVID-19.
Companies that apply for an Economic Injury Disaster Loan will be provided immediate economic relief by the $10,000 economic injury grant. Sole proprietors, landlords, vendors and self-employed contractors are all considered small businesses eligible to apply for the disaster loan.
A partnership is like a marriage. It takes effective communication to meet mutual goals. You can avoid many partnership disputes by creating a clear operating agreement before the partnership starts doing business. The experienced San Jose business attorneys at Structure Law Group can help you avoid unnecessary partnership disputes. By executing a clear, binding, and specific partnership agreement, you can save time and expense that ultimately hurts your business. Call (408) 441-7500 to schedule a consultation with one of our skilled San Jose business lawyers. We have helped many Northern California businesses create effective operating agreements.
There are several important steps to follow in order to create an agreement that will effectively resolve disputes in future business transactions:
When starting a new business, it is important to know what type of business entity will best protect you and your investors. The wrong entity selection could expose your business to unnecessary legal liability and tax liability. Let an experienced business formation attorney advise you on the best way to protect your new business. Call Structure Law Group at (408) 441-7500. Our experienced Silicon Valley business lawyers can help you mitigate your liability and risks to keep your new business profitable.
What to Consider When Deciding Between a Partnership and an LLC
There are many factors that can affect your choice of business entity. Here are just a few of the many important things to consider:
Mechanics liens are a complicated legal tool with dramatic financial consequences. It is important for any property owner, business owner, or contractor to understand how this tool applies to you. Call Structure Law Group at (408) 441-7500. Our experienced Silicon Valley business lawyers can help you understand how mechanics liens work, and how you can either prosecute or defend a mechanics lien to protect your financial interests.
What is a Mechanics Lien?
A mechanics lien is a legal tool used to protect contractors’ right to payment. A contractor (and certain other parties) who have not been paid for labor, materials, or services can file a lien against the real property at issue. This lien acts as a “cloud” on the owner’s title. The owner cannot sell the property until the lien has been satisfied. In certain cases, the holder of a mechanics lien might have other ways of enforcing the lien, as well.
Everyone has different reasons for starting and ending a business. Some Silicon Valley entrepreneurs start their businesses hoping to be acquired by a larger corporation. Many tech industry business owners build their enterprises with the goal of selling them, while other business owners are simply ready for a change. Whether you’re being acquired, retiring, transferring your business interest to a family member, or simply moving on, the experienced Silicon Valley business lawyers at Structure Law Group, LLP can help. From explaining tax options and consequences to fighting for the best sale price, we’re here for Silicon Valley business owners at every step. To schedule your free business law consultation with one of our experienced Silicon Valley business attorneys, call us today at 408-441-7500 or contact us online.
Step 1: Finding a Buyer & Negotiating a Sale Price
Most clients looking to sell their businesses have a buyer lined up and a ballpark sale price in mind. However, a sale can fall apart in the details. For example, do you own a patent associated with your business that’s necessary for operation? Do you have financial investors who own a share of your company? Are there any outstanding contracts or liabilities the new owner should be aware of? Always take the following into consideration when negotiating a sale price:
Drafting contracts that properly protect your legal interests requires training, a unique skillset, and years of experience as a business attorney. Contracts that are not drafted by experienced counsel often fail to provide adequate protections to the parties involved. For example, contracts prepared by business people that are not attorneys often contain key terms that are vague or are missing key legal provisions and fail to offer business owners sufficient legal protection. A well drafted contract can provide a business owner predictability and will save significant time and money by avoiding pitfalls that can be a significant burden on a company.
4 Reasons Why You Shouldn’t Draft Your Own Business Contracts
In forward-thinking Silicon Valley, many individuals and businesses have made profitable investments in Bitcoin and other cryptocurrencies. Employers may want to take advantage of healthy appreciation and pay their employees in this increasingly-valuable currency. But employers must use caution. Employment laws still apply to regulate the manner in which a worker must be paid. Wage and hour disputes are more difficult with cryptocurrency, and there is not yet clear case law to define these issues. Employers should consult with an experienced Silicon Valley employment law attorney before making the decision to switch to crypto.
Call (408) 441-7500 to schedule a consultation with one of our skilled San Jose business lawyers. We help California employers find ways to implement new technologies while meeting their legal obligations.
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