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A good business owner knows the importance of efficiently running and managing the operational aspects, as well as the legal side, of a business.  Incorporation attorneys add value to the business enterprise because they not only provide legal guidance but also dispense strategic advice.  Their knowledge and expertise on small business law should help entrepreneurs establish their businesses, grow, and succeed.

Establishing a Small Business and Small Business Law

Establishing a Small Business and Small Business Law

Establishing a small business has its advantages and disadvantages.  Seeking professional legal advice and a better understanding of the different structures of business entity formation are essential tools that will assist entrepreneurs in choosing the best possible model to help them achieve success in their business endeavors.  There are four main types of business structures:  sole proprietorship, partnership, LLC (or Limited Liability Company), and corporation.

A sole proprietorship is owned and operated by one individual, while a partnership is run by two or more individuals.  Although a Limited Liability Company is not a corporation, it provides its owners with the same benefits accorded to an incorporated entity.  A corporation is recognized by law as a legal entity, which means it can enter into contracts, sue, and be sued.

When business owners decide to incorporate their company, a Los Angeles business lawyer can recommend the best corporate structure to adopt as their framework.  Incorporating a small business can provide the entity with adequate legal protection.  It also grants owners and shareholders limited liability with regard to debts incurred by the company.

There are two primary types of corporations: C Corporation and S Corporation.  A C Corporation is a legal structure wherein the profits earned are taxed separately from its owners or shareholders.  Under an S Corporation, earnings are distributed among shareholders, who are then taxed based on their returns.

Los Angeles Business Lawyer

Los Angeles Business Lawyer

Hiring a business lawyer Los Angeles can specify the various advantages and disadvantages of each corporate structure, and guide entrepreneurs in making the right decision for their business.  An incorporation attorney will also handle all the necessary paperwork required in incorporating a business enterprise.   Aside from filing the articles of incorporation, business lawyers prepare stock certificates and stock ledgers, as well as draft the minutes of meeting between owners and shareholders.

A corporate lawyer can also be beneficial to business owners when they enter into contracts with other parties.  A Los Angeles business lawyer can draw up and scrutinize contracts to ensure that the terms and conditions stated therein go hand in hand with company goals.  Incorporation attorneys can also conduct business negotiations on behalf of the company.

business lawyer Los Angeles registers the business for an employer identification number.  An employer identification number is issued by the IRS and consists of a nine-digit number.  This number is issued to business entities that are mandated by law to provide tax statements and submit employment taxes.

Corporate lawyers can also bring into the business important advisors, such as a certified public accountant and an insurance broker.  The role of an accountant is related to the financial aspect of the business.  This includes financial report preparation and financial data management, as well as preparing and filing annual business tax returns.

Watch this video here to learn more about small business law – www.youtube.com/watch?v=_ajnPW9ULpk.

Gale & Vallance Business Lawyers Los Angeles

Gale & Vallance Business Lawyers Los Angeles


Every business person understands the importance of adapting to the ever-changing market, in order for their business to experience continuous growth and success.  Modifying their business structure allows entrepreneurs to evolve and meet challenges.  Incorporating a company, whether it is a sole proprietorship or partnership, is an attractive vehicle for owners of a business enterprise, because of the many advantages and benefits that it entails.

Small Business Incorporation Needs Business Lawyers

Small Business Incorporation Needs Business Lawyers

An incorporated entity provides limited liability to its owners and shareholders.  Limited liability is a concept wherein business owners are not financially liable for the debts and obligations of the company, thus ensuring asset protection against the liabilities of the business that may arise.  Another advantage is that it can provide potential tax savings.

The transition of a sole proprietorship or partnership to an incorporated entity requires business owners to submit proper corporate documentation upon formation of the company, as well as the updating of their records on an annual basis.  This practice shields their business against unfortunate consequences.

Hiring business lawyers allows entrepreneurs to focus on the operational aspects of the business while handing over the legal reins to their corporate attorneys. A business lawyer is significant to any successful company because they function as the trusted advisors of the business.  They not only provide crucial assistance to all facets of the business but also protect its interest.

Orange County Business Lawyer - Gale and Vallance

Orange County Business Lawyer – Gale and Vallance

As an advisor, an Orange County business lawyer recommends the ideal corporate structure for a particular business, as well as presents the different advantages and disadvantages of each model.  In the early stages of incorporation, a legal specialist takes care of filing the articles of incorporation, drawing up the minutes of the first meeting between the board of directors and the shareholders, preparing a certificate of stock, and creating a stock ledger.

Business lawyers also function as middlemen between governmental entities and business owners.  They take care of applying for and obtaining a FEIN (or, federal employer identification number), which is fundamental to opening a corporate bank account, as well as allowing companies to account for their annual income to the federal and state government.

Incorporation lawyers also respond to contracts that a business may enter into. They draft, review, and negotiate contracts on behalf of business owners to ensure that the terms and conditions are in line with the goals and objectives of their company.

Considering that the laws of incorporation vary in every state, it would be an advantage to hire a business lawyer during the initial stage of incorporation.  If a company plans to incorporate in the state of California, hiring a California business lawyer should be able to advise business owners on the latest California laws and legal requirements that apply to their business structure.

A competent Orange County business lawyer is well-versed in California Codes and keeps their clients up to date regarding corporate laws in California, thus helping their clients avoid legal issues and challenges down the line.  Aside from preparing important corporate documents, an incorporation attorney also helps entrepreneurs navigate the legal avenues involved in making deals with other business parties.

To find a competent and reliable California business lawyer, visit Incorporation Attorney’s website now, at www.incorporationattorney.com/.

California Business Lawyers - Gale & Vallance

California Business Lawyers – Gale & Vallance


Business Lawyer Orange County, Q#13005: I am a small business owner and have a chance to buy the inventory of another business. What should I think about?

I’m a small business owner. I ran across an opportunity to purchase a small automobile parts business in Orange County, CA. I have the opportunity to purchase all of the parts that are in inventory at a fantastic price. I need to move fast and was wondering if there is anything that I need to be aware of before I jump at the opportunity.

Business Lawyer Orange County, Q#13005: You should think about Fraudulent Transfer Act and another law is known as the California Bulk Sales Law.

Does the Bulk Sale Law apply to me?

Does the Bulk Sale Law apply to me?

In today’s economy, it is not uncommon for people seeking business opportunities to run across opportunities that at first blush would look like a great opportunity to purchase the assets of the business at substantially reduced retail prices. This can be a situation where the buyer must beware of a situation sometimes being too good to be true.

A buyer needs to be aware of the fact that the state of California has laws that protect creditors in the situation where the seller is attempting to transfer able assets of the business without taking care of their obligations to the creditor. One such law is called the Fraudulent Transfer Act. Another law is known as the California Bulk Sales Law.

California Bulk Sales Law

If a buyer and seller failed to comply with the bulk sales law, the failure could result in the buyer being liable for the seller’s debts. Even though the buyer will have the legal right to chase after the seller (in legal mumbo jumbo “seek indemnification”) to try to get reimbursement for the money that was taken by the creditor, many times the seller is long gone with the buyer’s money and the buyer is left holding the bag.

Requirements of the Buyer

Buy Bulk and Save - Small Business Lawyers Orange County Tip

Buy Bulk and Save – Small Business Lawyers Orange County Tip

If the deal triggers the Bulk Sales Law, there are several requirements that are placed upon a buyer including preparing a Notice to Creditors which would be filed with the County Recorder’s Office, then published in a local newspaper of general so Circulation and finally sent to the County Tax Collector’s office.

How should I proceed to protect myself?

If you are considering buying assets in excess of $10,000 from an ongoing business, is strongly recommended that you seek the advice of a business attorney in Orange County specializing in small business to walk you through the process to help you avoid the pitfalls of not complying with state laws.

California Bulk Sale Law – Andrew Gale Orange County Lawyer
 

Make sure that your corporate records accurately reflect the details of the deal.

If you need to talk to a business lawyer about a project such as this, we would be delighted if you would call the IncorporationAttorney at the Law offices of Gale and Vallance (714) 634-4838.