Validity Of Non-Compete & Non-Solicitation Clauses In California

Many business owners wish to include non-compete and non-solicitation clauses in contracts. A non-compete clause (or separate non-compete agreement) typically prohibits one party from competing against the other party for a specific duration after the contract ends. California courts frown upon non-compete clauses, and there are pitfalls when including these clauses in contracts. Section 16600 of the Read More

5 Advantages Of Common Law Legal Systems

Common law refers to the law made by judges and not the parliament. It's basically that law that develops organically in due course and is based on the accepted shared values and customs of society. As judges consider both criminal and civil matters, they make informed decisions, develop precedents, and deliver rulings. When all these things are taken together, they constitute common law. Some civil laws like Read More

Minimize Estate Taxes Using Irrevocable Life Insurance Trusts

An Irrevocable Life Insurance Trust (ILIT) is a very important estate planning tool that provides many benefits, the most beneficial of which is tax savings. An ILIT is an irrevocable (non-amendable) trust that is both the owner and the beneficiary of one or more life insurance policies. If the insured is a married person, the non-insured spouse and children are most often beneficiaries of the ILIT. If the Read More

The Family LLC – A Unique Estate Planning Tool

A Family Limited Liability Company (FLLC) is a legal entity that serves as an estate planning tool. The main goals are to protect assets from creditors, provide management experience for younger generations, ensure who acquires a direct interest in the family business, prevent fragmentation of the family business and assets, and reduce estate and gift taxes. A Family Limited Liability Company (FLLC) is a legal Read More

Title Insurance Issues After Transferring Real Property To Revocable Living Trust

If you know someone who already has a living trust, they may be in danger of losing their home! Anyone who has transferred real property to their revocable trust must consider the dangers of their title insurance policy becoming invalid after such a transfer, and should explore their options.   What is title insurance? When you purchase real property, most often you also purchase a title insurance Read More

S-Corporations Vs. C-Corporations

What is the best legal structure for your business? While there is an assortment of different structures (corporation, limited liability company, partnership, etc.), it is first important to understand the difference between an S-corporation (“S-corp”) and C-corporation (“C-corp”). An S-corp is a corporation that elects to be taxed under Subchapter S of the Internal Revenue Code. The profits (and losses) of an Read More

The Defend Trade Secrets Act Of 2016: Federal Jurisdiction For Trade Secret Litigation

The federal Defend Trade Secrets Act of 2016 (“DTSA”) was enacted on May 11, 2016, after it was unanimously passed by the Senate and ratified by the House in a 410-2 vote. The federal Defend Trade Secrets Act of 2016 (“DTSA”) was enacted on May 11, 2016, after it was unanimously passed by the Senate and ratified by the House in a 410-2 vote. The DTSA is not retroactive, rather it is effective for all Read More

California Transfer On Death (TOD) Deeds

Effective on January 1, 2016, California Assembly Bill 139 enacted California Probate Code § 5600, et. seq., which permits an individual to transfer real property upon death using a revocable transfer on death (TOD) deed. Effective on January 1, 2016, California Assembly Bill 139 enacted California Probate Code § 5600, et. seq., which permits an individual to transfer real property upon death using a revocable Read More

Securities Issues For Startups: California Limited Offer Exemption Notice

There are many dangers in forming a company without advising an attorney, such as failing to file a securities registration exemption with the California Department of Business Oversight (DBO) and federal Securities and Exchange Commission (SEC). There are many dangers in forming a company without advising an attorney, such as failing to file a securities registration exemption with the California Department of Read More

Selling Your Business To A Financial Buyer Vs. a Strategic Buyer

Whether you want to sell your business next year or a decade from now, you will have two basic options for an external sale: the financial or the strategic buyer. Whether you want to sell your business next year or a decade from now, you will have two basic options for an external sale: the financial or the strategic buyer. The Financial Buyer The financial buyer is buying the rights to your future profit Read More