The landscape of ultra-high-net-worth individuals in California is facing a massive legal shift. On November 3, 2026, voters will decide on Proposition 40 – the 2026 Billionaire Tax Act.

If passed, Proposition 40 will impose a one-time 5% excise tax on the worldwide net worth of California residents and applicable trusts valued at $1 billion or more. Because this tax targets wealth globally, many are asking a critical question: can offshore asset protection structures shield wealth from a state-level wealth tax?

The short answer is NO!

What happens when you don’t have your legal ducks in a row? You lose $500,000.  As business owners, we are so focused on running the business that we forget to get our legal ducks in a row. Why does it matter? Through a lot of heartache, you finally find a private investor who is willing to listen to your story and invest in your business.  Here’s what can happen if you don’t have your legal documents in order.

What happens when you don’t have your legal ducks in a row? You lose $500,000.  As business owners, we are so focused on running the business that we forget to get our legal ducks in a row. Why does it matter? Through a lot of heartache, you finally find a private investor who is willing to listen to your story and invest in your business.  Here’s what can happen if you don’t have your legal documents in order.

What happens when you don’t have your legal ducks in a row? You lose $500,000.  As business owners, we are so focused on running the business that we forget to get our legal ducks in a row. Why does it matter? Through a lot of heartache, you finally find a private investor who is willing to listen to your story and invest in your business.  Here’s what can happen if you don’t have your legal documents in order.

What happens when you don’t have your legal ducks in a row? You lose $500,000.  As business owners, we are so focused on running the business that we forget to get our legal ducks in a row. Why does it matter? Through a lot of heartache, you finally find a private investor who is willing to listen to your story and invest in your business.  Here’s what can happen if you don’t have your legal documents in order.

What happens when you don’t have your legal ducks in a row? You lose $500,000.  As business owners, we are so focused on running the business that we forget to get our legal ducks in a row. Why does it matter? Through a lot of heartache, you finally find a private investor who is willing to listen to your story and invest in your business.  Here’s what can happen if you don’t have your legal documents in order.

Business plans are written road maps that guide business owners through the various stages of their business. Research supports the fact that businesses with a written and formalized business plan are more likely to achieve their financial viability goals compared to their non-planning peers. Writing a business plan can make a world of difference for entrepreneurs who desire external funding.

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.