California and the Federal Trade Commission (FTC) have updated their auto-renewal rules to better protect consumers from so-called “negative option” programs—subscriptions or services that continue until the customer cancels. If your business charges customers on a recurring basis, you need to review your business contracts for these changes. Failure to comply can result in enforcement actions, fines, and reputational damage. Starting July 1, 2025, California’s updated Automatic Renewal Law requires businesses that offer recurring subscriptions online to make cancellation as easy as enrollment—literally a “click-to-cancel” mechanism. This is what you need to know. California Requirements (Effective July 1, 2025) Clear... READ MORE

As AI tools become more accessible and sophisticated, many business owners are asking: Should I use AI to draft my contracts? While AI can be a helpful starting point, it’s not a substitute for legal expertise—especially when your business, liability, and reputation are on the line. What AI Can Do AI can quickly generate contract templates, summarize terms, and flag common issues. This is useful for early-stage planning or identifying basic terms in routine agreements. It’s especially tempting for small businesses looking to cut costs or move quickly. The Risks of AI-Drafted Contracts But here’s the catch: AI doesn’t know... READ MORE

Spring isn’t just a time for cleaning—it’s also the perfect time for corporations and LLCs to take care of important annual legal formalities. Whether you’re a solo entrepreneur or manage a growing company, your annual meeting and related documentation are essential to keeping your business compliant and protected. What Is an Annual Meeting? An annual meeting is a formal gathering of a corporation’s shareholders and/or board of directors, or an LLC’s members and managers, to review the company’s performance, approve important decisions, and reappoint leadership if needed. Whether you’re running a single-member LLC or a corporation with a board and... READ MORE

Watch DeAnn at Her Desk: In less than two minutes, DeAnn explains what a registered agent is, why every LLC and corporation needs one, and why it's an important part of protecting your business. When you form an LLC or corporation, one of the requirements you'll see is designating a registered agent. It's not the most exciting part of starting or running a business, but it's one of the most important. So, what exactly is a registered agent? A registered agent is the individual or company authorized to receive important legal and government documents on behalf of your business. Every... READ MORE

As business attorneys, we see it all too often—contracts that are outdated, unclear, or worse, unenforceable. A contract is meant to protect your business, yet many companies operate with agreements that haven’t been reviewed in years. As we step into 2025, now is the perfect time to give your contracts a fresh look and ensure they’re working for you, not against you. Why Contract Reviews Matter Laws change, business relationships evolve, and what worked a year ago may no longer be in your best interest. In California, new laws taking effect in 2025 could impact employee rights, workplace policies, independent... READ MORE

MARCH 21, 2025 UPDATE Consistent with the U.S. Department of the Treasury’s March 2, 2025 announcement, the Financial Crimes Enforcement Network (FinCEN) is issuing an interim final rule that removes the requirement for U.S. companies and U.S. persons to report beneficial ownership information (BOI) to FinCEN under the Corporate Transparency Act. What’s Changed?Only foreign companies that register to do business in the U.S. are now required to report BOI.U.S.-formed companies (formerly called "domestic reporting companies") are exempt. What This Means for You:If your business was formed in the U.S., you no longer need to file BOI reports with FinCEN.U.S. persons... 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