Choosing a business structure is a key step when establishing a new business. The structure of a business can has implications for several essential elements of the way the business operates, including taxes and personal liability. A business structure is the legal framework of a company. It sets out key factors like ownership and profit distribution. The structure of a business should be established before it is registered with local, state or federal governments and should be chosen carefully. It can be costly and restrictive to make changes later. The business structure you choose can influence key elements of the business, including day to day operations, risk of personal liability, ability to raise capital funds, and taxes owed.

As many people scramble to finish their last-minute holiday shopping and make sure everyone on their gift list is covered, business owners have another list to pay attention to.  This list is called the business compliance checklist.  Businesses must fulfill their legal obligations to stay in good standing with the state.  Failure to do so may result in fines, fees, penalties, and even suspension or dissolution of their companies.

An end of year legal checklist typically includes reviewing and filing annual reports, checking and renewing business licenses, assessing any business changes throughout the year, verifying tax compliance, reviewing corporate governance policies, considering dissolutions or withdrawals for inactive entities, and filing final payroll taxes.

Disruption is common in the business world with unforeseen events or difficulties meaning that contracts sometimes cease to be beneficial or even possible.  If you have entered into a contract that you later wish to terminate, it is important to follow the correct procedure.  Failure to do this could constitute a breach of contract which could result in liability for damages.

Registered trademarks can also be cancelled by the USPTO for various reasons.  A cancelled trademark is a trademark that for one reason or another has been deemed invalid.  When a trademark’s registration has been terminated that means it can be registered by another person or business.  Once a trademark has been cancelled, it is considered dead.  The owner of this trademark is no longer protected by any of the benefits of a registered trademark.

Our dogs are extremely important parts of our daily lives. They follow our commands, work with us in various capacities, and act as faithful companions. Service dogs have these abilities, combined with training to perform specific tasks for individuals with disabilities. Many people with disabilities use a service animal in order to fully participate in everyday life. Dogs can be trained to perform many important tasks to assist people with disabilities, such as providing stability for a person who has difficulty walking, picking up items, preventing a child with autism from wandering away, or altering a person who has hearing loss when someone is approaching from behind.

CELEBRATING AMERICAN CORPORATIONS By Kelly Bagla, Esq. As the American Revolution came to an end, America was born on July 4th, 1776. The nation was founded by those who yearned for freedom. With that came innovators, individuals who wanted to start businesses, and those looking for work. American corporations started developing in the 1790s, and soon became vital to the new nation’s economy. THE FIRST MAJOR CORPORATION Although corporations date back to the 1790s, the first major corporation was the Boston Manufacturing Company, founded in 1813 by Francis Cabot Lowell, which focused on the making of cotton textiles. Lowell took the plans for his business model from England as the first corporations were created in Europe. THE 1870S AGE OF BUSINESS The 1870s proved to be a formative time for corporations in American. Oil, electricity, and the growth of railroads aided in the development of American corporations. These developments became opportunities for business ventures and created more business. During this age, the American Industrial Revolution took place. Corporate structure supplies business development and capital that stoked the flames of the American Industrial Revolution. ROBBER BARONS Since many corporations were founded in America’s early years, the U.S. became one of the chief economic powers of the world. Corporations were incredibly easy to start. The nation was young so there were not many laws for corporations and the steps to start one were simple. Due to the lack of regulations and restrictions, Robber Barons were prominent. Robber Barons were businessmen who were considered unethical in the way they handled their businesses. Robber Barons manipulated the market, creating monopolies. This eventually threatened capitalism. However, the enactment of the antitrust legislation in the late 1800s combined with state regulation and taxation combatted these Robber Barons and their monopolies. THE GREAT DEPRESSION Corporations in American took a turn for the worst when the Great Depression hit in 1929. The Great Depression was the biggest economic crisis in the industrialized world. Impacting the globe, the Great Depression lasted until 1939. Many Americans saw big corporations as the reason for the downturn. Franklin D. Roosevelt put policies in place to revitalize the country with opportunities for businesses and jobs. AFTER WORLD WAR II After the Great Depression and World War II, corporations in America were able to rise and gain what they had lost. However, states intervened again during this time to enforce labor laws and ensure that monopolies were not dominating the market. As American citizens started to care more about the environment and making sure labor laws were enforced, activism throughout the 1960s, 1970s, and 1980s pushed for labor and environmental standards to be enacted and enforced. Despite the steady rise of corporations in America, they continue to face challenges from large global corporations in the competitive international market. THE 2020S AGE OF BUSINESS In 2020, American corporations along with the rest of the world were hit with the coronavirus. This global pandemic forced many corporations to shut down or slow their plans and instead put their energy and resources towards survival both personally and professionally. Large corporations as well as small businesses were negatively impacted by this, but throughout the pandemic, a support small business movement helped many smaller corporations survive. As we celebrate the birth of our nation this 4th of July, we also celebrate the many businesses in the United States who drive our community, state, and national economics and provide jobs to the American people. Corporations can be a beautiful vehicle to provide jobs, support for the community, help the economy, and to stay on the cutting edge of technology. Corporations are governed by both state and federal laws, which can have negative impacts on those who do not understand corporate compliance. If you need help navigating the complex corporate laws or determining the best asset protection strategies, we can help. Click here https://baglalaw.com/contact/contact to schedule your consultation. Becoming a business owner, you control your own destiny, choose the people you work with, reap big rewards, challenge yourself, give back to the community, and you get to follow your passion. Knowing what you’re getting into is smart business because the responsibility of protecting your business falls on you. For more information on how to legally start and protect your business schedule your consultation here https://baglalaw.com/contact. Disclaimer: This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Selling your business is a very complex process and most business owners have never been through a sale process before. But business owners have more options than they realize. Lacking a team of professional advisors, including a strong M&A Advisor, corporate/transaction attorney and a CPA/tax advisor could have serious financial and tax consequences for both the business owner and the company so seek professional help from the beginning of the process. It pays to understand the various methods to sell or partially cash out of your business for a successful exit.

REAL ESTATE ASSET PROTECTION By Kelly Bagla, Esq. Real estate asset protection is a strategy investors can use to protect their finances from unexpected blows, including lawsuits. While real estate can be a great asset to your portfolio, it does not come without risks. The biggest risk is the risk of a lawsuit. If you are wondering how to protect property from creditors, creating a real estate asset protection strategy might be the solution you need. The best way to protect assets is to plan ahead. You want to structure your real estate assets in a way that hides ownership, minimizes equity, and protects your best interests. Here are a few real estate asset protection strategies: SEPARATE YOUR LIABILITIES More likely than not, you probably have purchased real estate in your name, and you probably hold the title to that real estate in your name. This means if you are personally subject to a lawsuit, all of your assets, including the real estate will be open for grabs by creditors. By creating an LLC for each real estate asset to separate your liabilities will prevent legal troubles with one asset from interfering with another asset in your portfolio. It is equally important to consider which state to form the LLC in so you have the best legal protection available under law. USE DEBT TO YOUR ADVANTAGE Carrying debt on your real estate assets through a mortgage or a loan can have its benefits. By stripping equity in your real estate portfolio through borrowing against the portfolio could potentially deter third parties from suing and reduce the number of lawsuits you receive. A lawsuit might be more appealing to someone if you own a property outright without a mortgage or a loan. Getting rid of this equity and maintaining a 75% loan to value ratio reduces the funds available through your assets or LLC. You can also use the stripped equity to further your investments by purchasing other properties or land. MANAGEMENT COMPANY Creating or forming a management company to manage your real estate rental properties is a crucial part of asset protection. Even if you have a third party property management company managing your rentals, this third party property management company can enter into a contract with your management company whereby your management company will take on 100% of the liabilities, as and when they arise. Since your management company does not own any real estate, it can afford to be sued. LANDLORD INSURANCE A landlord specific insurance policy protects you in the event one of your tenants is injured on the property. This could help you cover the associated costs of medical bills, lost wages, and legal/court fees, all of which could end up costing you hundreds and thousands of dollars, not to mention the loss of your real estate property. Landlord insurance is typically affordable, and this should be your place to start when creating a strategy for real estate asset protection. HOMESTEAD EXEMPTION A homestead exemption can help protect property by making it unavailable to creditors. The downside of a homestead is you are required to live on the property to qualify in most states. This might be an option if you inherit a fully paid off property that you intend to inhabit. A comprehensive real estate asset protection plan that caters to you and your assets is the best option. Regardless of which strategy you choose to protect your real estate assets, it is imperative that you create a plan before investing, and especially before you rent your property out to tenants. If you already have a portfolio of real estate assets, consider your protection strategy options before it’s too late. Asset protection for real estate investors is an important part of any strategy. If you need help determining the best real estate asset protection strategies, we can help. Becoming a business owner, you control your own destiny, choose the people you work with, reap big rewards, challenge yourself, give back to the community, and you get to follow your passion. Knowing what you’re getting into is smart business because the responsibility of protecting your business falls on you. For more information on how to legally start and protect your business schedule your consultation here https://baglalaw.com/contact. Disclaimer: This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

Two new California laws directly affecting business owners went into effect on January 1, 2024. California has strengthened the prohibition against noncompete and nonsolicitation agreements, which also posse potential liability for employers who require their employees to sign noncompete agreements or attempt to enforce existing noncompete agreements against former employees.