When starting a business, serious consideration should be given to forming a limited liability company (LLC). While the key advantage, as its title suggests, is the protection of owners from incurring personal liability for the debts and liabilities of the business, there are several other features that make LLCs a preferred structure for your business. LLC owners may also choose their tax treatment, are subject to less onerous compliance requirements and have increased flexibility. Limited liability. The members of the LLC are not personally liable for the debts of the business. In the event of a judgment, members can lose... READ MORE

The California legislature has taken action to prevent abusive treatment of foreign laborers by California employers in a new law enacted in 2015. The California Foreign Labor Recruitment Law (SB 477) provides protections to foreign workers by restricting certain practices by foreign labor contractors, described as any person who solicits or recruits a foreign worker who resides outside the United States for paid work for employer’s business in California. This legislation is modeled after a previous bill, SB 516, which included employers that directly hired foreign laborers in its restrictions on exploitative employment practices. The current bill, which covers only... READ MORE

If you operate a business and are looking to lease space for your operations, you need to know that the rules that apply to residential tenants are different from those that apply to commercial tenants. Most states, including California, have extensive legal protections for residential tenants in furtherance of the overall public policy of providing safe and secure housing to residential renters. Both federal and state laws are designed to protect the rights of residential tenants, who are deemed to be in an inferior bargaining position vis-à-vis their landlords. In contrast, commercial tenants are regarded as having the same skill... READ MORE

In a recent article Real Estate Takes Its Place as the Fourth Asset Class author David Funk, reflects on the historical shift in institutional investors from viewing real estate as an “alternative investment” to the current trend of many fund managers to permanently shift up to 10% in a portfolio position from stocks, bonds and cash to real estate. “What,” you say?  Less than 10% allocation in real estate investments for large institutional investors?  For family funds or individual investors active in the real estate market 10% seems dismally small.  Those who own significant real estate portfolios prefer real estate... READ MORE

The California legislature enacted several new laws this past year affecting employees and independent contractors.  Under AB 1897, which went into effect on January 1, 2015, employers may become jointly liable with independent contractors it hires to provide labor for wage violations and workers compensation defaults of the independent contractor for services that are within the course of the employer’s business or performed at the employer’s work site. Accordingly, employers benefiting from labor services will share with the labor contractor all civil legal responsibility and civil liability for all workers supplied to the company. In the past, these rules applied only to... READ MORE

The purchase of an existing business carries risks if key procedures are not properly executed. There are several steps to purchasing a business, including researching the type of business to purchase, deciding on the terms of the transaction and drafting legal documentation. Below is a general summary of the most important actions to be undertaken by a purchaser in acquiring a business. Determine the structure and scope of the purchase. Once the purchaser has identified the type, size and location of the business he or she wishes to purchase, the purchaser must determine what specifically is being purchased. Some business... READ MORE

South Bay Business Lawyers in Manhattan Beach goes against many stereotypes about law firms. When most people think of lawyers, they envision workaholics who charge for every little service, right down to the paper clips and Xerox copies, while providing clients very little understandable information about the work they are doing for them. South Bay Business Lawyers has a different attitude, one that emphasizes customer service and affordability. “We truly bring customer service to the practice of law,” Partner and Founder DeAnn Flores Chase said. “We talk to our clients, but more importantly, we listen to them and we help... READ MORE

South Bay Business Lawyers are excited to welcome Carol Ann Glover as Of Counsel to their established legal practice. With Carol’s addition to the firm’s roster, SBBL’s clients can expect even more comprehensive service with a new and knowledgeable adviser in all matters pertaining to real estate law, including lease agreements, landlord/tenant issues, and loan workouts. “Carol is an excellent attorney and we are excited to have her on board,” said Nancy Hersman, managing partner at SBBL. “She is a seasoned lawyer and the range of her expertise will enhance the services we offer to our clients.” “Carol has been... READ MORE

This is the first of a three-part series discussing legal steps an entrepreneur, business owner or professional should take when starting and growing a business. Many people believe that entrepreneurs are turning this economy around. We work with entrepreneurs, business owners and professionals on a daily basis. Many of them are glass-half-full kind of people. That being said, too many bright, enterprising individuals do not fully recognize the impact a lawsuit can have on their business and their family. It is vital for people starting and growing their business to do everything they can to protect themselves and their family... READ MORE

This is the second of a three-part series discussing legal steps an entrepreneur, business owner or professional should take when starting and growing a business. Living with your contract means knowing what your business contracts say, and conducting your business consistent with the terms of these agreements. Whether you are starting or growing a business, well-drafted written contracts are critical to your success. Too many business owners rely on “form” or “template” contracts obtained from the internet, an office supply store, or other businesses in their industry. However, when it comes to contracts—one size does not fit all. Contract law... READ MORE