As we approach the end of the year, we are reaching out to remind you of the upcoming deadline for compliance with the Corporate Transparency Act (CTA). Although the CTA has been challenged in court, it continues to apply to most businesses. The ruling from the federal district court in the Northern District of Alabama, issued earlier this year in National Small Business United v. Yellen (March 1, 2024), temporarily halted enforcement of the CTA for certain plaintiffs in that case. However, this ruling does not affect the majority of business owners. The Financial Crimes Enforcement Network (FinCEN) issued a... READ MORE

The Los Angeles County Department of Public Health has announced a new pathway for home-based food entrepreneurs. Starting November 1, the Microenterprise Home Kitchen Operation (MEHKO) program will allow residents to prepare and sell food directly from their home kitchens, operating as small-scale “mini restaurants” under state law. For aspiring home chefs, this program is a game-changer. The permitting process for MEHKOs opened on October 7, creating a formal route for home-based food businesses to legally serve the public while meeting health and safety standards. Each business must be operated by a resident in their own kitchen, allowing for the... READ MORE

In the realm of business transactions, a Letter of Intent (LOI) plays a vital role in outlining the preliminary terms of a deal before parties engage in detailed negotiations and due diligence. Used across various contexts—such as business acquisitions, real estate transactions, leases, and loans—LOIs can help facilitate a clearer understanding of the parties' intentions. However, while LOIs can be advantageous, they also come with potential pitfalls. Below, we explore the benefits, disadvantages, and common pitfalls to consider when using an LOI. What is a Letter of Intent? A Letter of Intent serves as a framework for a future agreement,... READ MORE

Legal Considerations for Distinguishing Between a Hobby and a Business Understanding whether your side hustle qualifies as a hobby or a business goes beyond just tax implications; it involves significant legal considerations. This distinction affects how you operate, your financial obligations, and potential liabilities. Differentiating Between Hobby and Business The primary distinction between a hobby and a business lies in their objectives. A business is conducted with the intention of making a profit, while a hobby is pursued for personal enjoyment without the intent to generate income as a primary objective. This differentiation is vital because it affects the side... READ MORE

For small businesses long-term success requires more than just a great product or service. It also demands careful attention to legal matters to ensure compliance, mitigate risks, and protect the business's interests. As business attorneys, we've identified several key legal must-haves that every business should implement to lay the groundwork for sustainable growth and success. Choosing the Right Legal Structure First and foremost, every business needs a solid legal structure. Whether you're a sole proprietorship, partnership, limited liability company (LLC), or corporation, choosing the right legal structure is essential for protecting your personal assets, minimizing tax liabilities, and defining your... READ MORE

Online interactions are the norm for anyone doing business today. As businesses use websites and mobile apps to connect with their audience, there are certain responsibilities that businesses have to follow not only as required by law but to ensure a positive relationship with customers. Two key areas: Privacy Policies and Terms & Conditions - often get confused, but both serve distinct roles with different focuses. Let's explore the differences and why both are essential, especially in the context of laws that may apply. What is the Purpose of a Privacy Policy?A Privacy Policy functions as a detailed disclosure of... READ MORE

Starting on January 1 2024, your company may be required to report information about the people who own or control it to the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN). FinCEN promotes national security and protects the US financial system from fraud and abuse by criminals and corrupt officials. In 2021, Congress passed the Corporate Transparency Act which creates a new requirement for many companies formed or operating in the US to report their Beneficial Ownership Information (BOI) to FinCEN. This reporting requirement aims to enhance transparency and accountability within corporate structures, contributing to a more secure and transparent financial... READ MORE

“Is this a legitimate notice?” This is a question our clients ask us all the time when they receive official-looking documents. Quite often, we tell them that it is not and they can dispose of it in the proper receptacle. However, a business owner cannot take the chance of disregarding an actual governmental notice, so the utmost care should be exercised in evaluating these notices. In today’s online and digital world, the battle to protect intellectual property and business assets continues to be a chore. Fake trademark renewal letters are one of those scams that are still out there and... READ MORE

A severance agreement is a release to be signed by an employee whose employment is separated in exchange for payment of money (or other consideration). This can be an effective tool to protect a company from future lawsuits and other risks. Below we discuss legal requirements when using a severance agreement as well as specific provisions that should be included in the agreement to protect the organization. Legal Requirements When Presenting A Severance Agreement Whenever severance agreements are used there are certain legal requirements that must be followed. As a preliminary matter, in order to be enforceable, the employee must... READ MORE

Just like large companies, small businesses can leverage the opportunities that joint ventures can provide to thrive in today’s economy. Entering into a joint venture with other businesses and entrepreneurs could open the doors to gaining access to more capital, offering more services to clients and may help many small businesses thrive in today’s business landscape. In this article, we will explore some essential tips and considerations before entering into such partnerships. Reasons For Entering A Joint VentureEntering a joint venture can be a strategic move for small businesses to leverage the advantages that collaboration and partnership bring. By tapping... READ MORE