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Navigating the world of business structures can be daunting, especially when deciding between a C corporation and an S corporation. Although both are popular forms of incorporation, they differ in several significant ways, from taxation to ownership rules. This blog will shed light on the key differences between these two corporate structures to help you make an informed decision when establishing your business.   Taxation One of the primary distinctions between C corporations and S corporations lies in how they are taxed. C corporations face double taxation, as they are taxed at the corporate level and then again when dividends…

Forming a Limited Liability Company (LLC) can be a pivotal decision for aspiring entrepreneurs and small business owners looking to protect their personal assets and benefit from a more favorable tax structure. One question that often arises during this process is, “Do I need a lawyer to form an LLC?” While it’s not legally required to hire an attorney for this process, there are a few factors to consider when deciding whether professional legal assistance is necessary for your situation.   Engaging a lawyer when forming an LLC can offer several advantages. An attorney is well-versed in state-specific regulations and…

Escrow is a third-party process requiring the payment of a fee to an independent individual or entity that will act as an “escrow agent”. If the transaction goes as planned, the funds and property placed in escrow will be transferred in accordance with an agreement that was negotiated between the parties. If, on the other hand, the contract is not fulfilled or is breached, the contents of the escrow account can be returned to the parties. Additional Protection The additional layer of protection is through California’s Escrow Law (i.e., California Civil Code Section 1057). Specifically, Code Section 1057 sets forth…

If you are looking to protect your invention, or possibly commercialize it, then you need to be proactive and consider applying for a utility patent. You may be wondering, “What is the process and amount of time necessary to secure a utility patent?” Well, the answer largely depends on whether you are handling the patent application process yourself, or if you retained the services of a knowledgeable patent attorney in Los Angeles. For individuals who opt to apply for a utility patent without the assistance of an attorney, the application process could take up to 25 months (i.e., more than…

Some people mistakenly believe that if they successfully register a trademark, they are bestowed perpetual legal right and ownership over that mark. In reality, a trademark can be canceled (also known as being declared “dead”) if the mark has not been used for three years, or if you fail to maintain your trademark filings. During the trademark application process, the applicant agrees that the trademark will either be used in commerce with the goods or services listed in the registration or it will not be used in commerce due to special circumstances. Most applicants indicate their mark will be used…

Business Escrow Explained Escrow is a third-party process requiring the payment of a fee to an independent individual or entity that will act as an “escrow agent”. If the transaction goes as planned, the funds and property placed in escrow will be transferred in accordance with an agreement that was negotiated between the parties. If, on the other hand, the contract is not fulfilled or is breached, the contents of the escrow account can be returned to the parties. Additional Protection The additional layer of protection is through California’s Escrow Law (i.e., California Civil Code Section 1057). Specifically, Code Section…

Some people mistakenly believe that if they successfully register a trademark, they are bestowed perpetual legal right and ownership over that mark. In reality, a trademark can be canceled (also known as being declared “dead”) if the mark has not been used for three years, or if you fail to maintain your trademark filings. During the trademark application process, the applicant agrees that the trademark will either be used in commerce with the goods or services listed in the registration or it will not be used in commerce due to special circumstances. Most applicants indicate their mark will be used…

There are many different types of innovations and inventions that can be patented in the United States. Nevertheless, there are certain things that generally cannot be patented; hence, it is important to have a baseline of knowledge of what qualifies for a patent before beginning the patent application process. Different Types of Patents Patents are typically broken down into specific patent types. The types of patents include: Design patents Utility patents Plant patents Design and utility patents are, by far, the most common types of patents pursued in the United States. Design Patent Generally, a design patent protects the ornamental…

California joins several states (e.g., Washington, Colorado, New York City, etc.) now requiring specific businesses to provide a compensation range in any job posting. Specifically, all private employers in California with 100 or more employees are required to provide pay data reports to the California Civil Rights Department, even when they are submitting Employer Information Reports (EEO-1) to the Equal Employment Opportunity Commission (EEOC). The new California law mirrors federal law requiring private employers with 100 or more employees to file annual EEO-1s with the EEOC. Employers are obligated to submit reports detailing the following data points: Number of employees…