The headlines, social media, and broadcast news tend to emphasize the hardship facing many businesses during the current pandemic, especially in California where a virtual lockdown continues, but government statistics reveal that business startups are trending toward a new high.
The U.S. Census Bureau reports that filings for Employer Identification Numbers (EINs) have already reached 3.2 million this year, compared to 2.7 million for all of 2019. Many of these are for independent contractors, but 1.1 million are for businesses intending to employ others — a 12 percent increase from the year before.
In Granite Bay, California, and the nearby cities of Roseville, Rocklin, Folsom, and Auburn, Katz Business Law has been helping individuals with their business formation needs for 30 years, as well as aiding ongoing businesses in resolving contract and other disputes, in understanding and applying federal and state employment law, in recapitalizing one’s enterprise, and even in business dissolution.
Whatever your business law needs, contact me, Brian Katz, Attorney-at-Law, today for a free consultation. I can offer you experienced legal advice and representation when it comes to all matters of operating a business.
In addition to obtaining an Employer Identification Number for tax purposes, anyone forming a new business must decide how to organize it legally. A sole proprietorship is a simple approach, but it leaves the owner open to all liabilities on a personal level. A partnership can hold similar liability.
To help safeguard personal assets, some business owners choose to form a Limited Liability Corporation, commonly identified as an LLC. Forming a C or S Corporation is also an option.
The best approach is before opening your business to seek solid legal advice. I have been advising and helping people form businesses for decades, and I can certainly help steer you in the most appropriate and advantageous direction.
At some point in your business’s early existence — even at its birth — contracts may come into play, whether with clients, customers, or employees. Here too you’ll need legal assistance, and my experience will help in crafting contracts that best protect your interests.
Contracts, like most relationships in life, are subject to disagreements and disputes. Here the best defense is a great offense. If you draft iron-tight contracts where every detail and obligation is spelled out clearly, misunderstandings can be lessened if not outright averted.
Still, contract disputes may arise. One of the common forms is known as breach of contract, in which one party fails to live up to the requirements of the contract. If this happens to you, you have the right to take legal action.
In some cases, outside individuals or business entities may try to disrupt your business operations. This is known as tortious interference, or economic interference in California, and is also subject to legal recourse.
Resolving these disputes begins with negotiation, and, if that fails, lawsuits usually ensue. Whatever the situation, I have extensive experience in negotiation and litigation, and I can help you navigate the best legal course for the desired resolution.
Following the Great Depression of 1929, both state and federal governments accelerated passing laws to regulate employment practices. The federal Fair Labor Standards Act (FLSA) established the 40-hour workweek and the concept of overtime pay, which is set as one-and-half times regular hourly pay for hours worked past 40. California, being one of the more progressive states, later established its own overtime rule, mandating time-and-a-half not only after 40 hours but also after eight hours in a single workday.
Through the years since the FLSA, laws have established workplace safety standards, anti-discrimination measures, equal opportunity mandates, union organizing rights, leave and benefit standards, and much more – many, if not all of which, will have a dramatic impact on any business you form. In California, remember, the standards are usually higher than their federal counterparts.
Employment laws, if not followed properly, can not only lead to investigations and potential fines by federal and/or state agencies, but also can result in lawsuits by employees, customers, partners, contractors, and even the general public.
I can help you understand and implement all employment laws that impact your new or existing business.
As we’ve all heard, half of all new businesses fail within two years, and in this pandemic, even many existing businesses may find it hard to reopen and stay in business. Just as a business must be properly formed, when the time for dissolution arrives, proper procedures should be followed.
All businesses operating in California must register with the department of the Secretary of State (SOS), which has established procedures for closing a business. The department uses different terms for closure depending on the status of the business entity. Corporations registered in California can dissolve; corporations registered outside the state can surrender; LLCs and partnerships may cancel.
Regardless of the terminology, the SOS mandates that the business must:
File all delinquent tax returns and pay any taxes and penalties due
File a tax return for the last year of operation and mark it “final” at the top
Cease doing business in California once the final return is filed
File the appropriate dissolution, surrender, or cancellation form with the SOS within 12 months of filing the final tax return
Dissolving a business is not just a simple matter of closing the doors. Once again, you should approach business dissolution with the same precaution as you did for business formation. Legal assistance is essential for your own protection.
Katz Business Law is dedicated to providing you with the best and most personalized legal services. When you call, you will speak directly with me, and together, we’ll discuss your situation and arrive at the best compliance and legal route for you. Whatever situation you face with your nascent or existing business, I have been helping clients in Granite Bay, California, and the nearby cities of Roseville, Rocklin, Folsom, and Auburn for three decades. Contact me today for a free consultation.