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Always Good to Think Ahead When Selling a Business in California

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Friday, October 21, 2016.

One can imagine the tremendous feeling of satisfaction that accompanies building a successful California business from the ground up. For many business owners, there comes a time when it appears that selling a business is the next logical step to take. However, as such endeavors may present various types of challenges, it is typically best to think ahead before diving in.

An important topic to ponder when considering selling a business is that of potential taxes on the income. There is no set tax rate for money earned through a business sale; various factors determine how much the government gets. In addition to personal income, state of residence and purchase price allocation all play into how much tax will be owed.

Patience may indeed be a virtue when it comes to deciding whether to place a business up for sale. If a business has not been up and running for an extended period of time, some say it is best to wait before selling. Potential buyers are reportedly often more attracted to businesses that have long-standing success and well-established histories.

Anyone thinking about selling a particular business in California may also want to consider what the future might hold with regard to the personal and professional journey. For many, spending every waking moment of their recent pasts working to create and maintain successful businesses leaves them suddenly at a loss when it comes to deciding what to do next in life. Crafting a solid plan is advisable. In fact, a business and commercial law attorney is often able to assist company owners throughout the process of a sale, as well as in creating new business plans.

Source: alleywatch.com, “What to Know Before Selling Your Business“, Mark Daoust, Oct. 10, 2016

If your business is contemplating or already involved in the purchase, sale or merger of another business, please contact the Law Office of Lynnette Ariathurai. We provide professional business legal services for clients in Fremont, Hayward, Union City, Castro Valley, Milpitas, or Newark, CA,

business planning, Sales & Dissolutions, sell a business in california

Problems Often Arise if Contract Disputes Go Unresolved

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Friday, July 29, 2016.

California business owners are undoubtedly not strangers to various challenges that arise when the terms of a signed agreement are not honored or another type of disagreement erupts in between signature parties. If left unresolved, a contract dispute can cause lasting and devastating negative effects for business owners and workers alike. In a recent situation in another state, a business relationship that has been in effect for 30 years is coming to an end because of a contract disagreement.

The collaboration between a university research center and a state’s mental health facilities has been functioning for three decades. During that time, researchers say they created a new system for treating those with mental illnesses. In order to implement the plan, the researchers would offer training to mental health workers at many of the state community mental health centers. The recent contract dispute will apparently cause that cooperative effort to cease.

One spokesperson for the state said that changes in the contract were needed to ensure that Medicaid funds used to support the research center’s efforts were being spent appropriately. A research center spokesperson responded by saying that the center could not accept the offer made by the state because of certain provisions in the offer. Reportedly, there was a deadline for contract resolution in place and that has since passed.

Due to the fact that the contract issues were not resolved, the business and community efforts between the two entities will now come to an end. Many people have been laid off from their jobs. The research center is being closed. To avoid similar outcomes, a California business owner may want to act alongside a skilled business attorney who has experience negotiating contract disputes and who has achieved successful results for others.

Source: kmuw.org, “Mental Health Contract Dispute Sparks Criticism Of Brownback Policies“, Jim Mclean, July 13, 2016

Contract Disputes

Business Planning Tips for California Entrepreneurs

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Thursday, July 14, 2016.

Plunging ahead to launch a new business in California may be a great lifetime adventure. Prospective entrepreneurs often face many challenges during business planning stages, however. In such circumstances, it is advisable to seek immediate and experienced guidance to increase one’s chances of achieving business success.

New business owners must make all types of decisions, ranging from whether they will create and sell hard-copy products or provide a service to the public. Once a business type is chosen, it is common for budding entrepreneurs to choose names for their new companies. Those pursuing business planning options are advised to seek clarification on trademark and copyright laws before staking claim to a specific title or name.

Whether one will function as a sole proprietor or enter a partnership is another crucial choice that may affect one’s business future. There are many valid reasons for choosing either style. An experienced attorney would be able to offer counsel as to the benefits and potential downfalls of each, then help determine what may be best suited to one’s particular interests.

Many California business owners choose to register trademarks. Also, some states require a new business owner to file a DBA (Doing Business As) to conduct business under a certain name or brand, especially if business and company names differ. Obstacles and challenges may arise when making decisions about company basics and preparing to launch start-ups. By asking a business and commercial law attorney for help, entrepreneurs may avoid delays, and move forward toward accomplishing their bottom line goals.

Source: rocketlawyer.com, “How to Start a Business“, Accessed on July 13, 2016

Business Formation & Planning, business tips, entrepreneurs, starting a business in california

The Dangers of Trying to Resolve Business Disputes on Your Own

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Tuesday, May 24, 2016.

One of the most common mistakes that small businesses make is trying to resolve disputes on their own. In an effort to save money – and thinking that the issue or conflict will simply go away – many small business owners do not take a proactive approach to dispute resolution.

Disputes don’t just go away. Particularly if the opposing party hires a lawyer of their own. It is critical that you take potential legal issues seriously and work with a trusted business law attorney to resolve the dispute as quickly as possible, protecting your long-term interests.

Here are a few things to keep in mind when faced with the threat of business conflict:

If you are contacted by an attorney of an opposing party, respond only through your own lawyer. Anything that you say in response will be evidentiary. You run the risk of accidentally making a statement that could cost you significantly or misspeaking in a way that can be used against you. Immediately contact your lawyer and only communicate through legal representation.

Be aware of disgruntled employees. If you suspect that an employee is upset for any type of employment law or human resources related matter, immediately seek the counsel of your attorney. You may have made a mistake or error that could result in a lawsuit. A lawyer can help you resolve the matter before it escalates.

Make sure that you understand your contracts and agreements in place.Hopefully you have worked with a skilled business law attorney in advance to create a contractual infrastructure that will protect the business in case of conflict. If you sense that a dispute is coming, review these contracts with your attorney and address any weaknesses immediately.

Do not try to make any under the table agreements. Far too many business owners try to make problems go away by throwing money at them or negotiating foolish agreements on their own. Always seek the guidance of a lawyer before making an agreement. Allow your attorney to conduct prudent negotiations on your behalf.

Remember that mistakes you make during disputes could come back to haunt you. Each decision you make during this period of time is critical and an error could have long-term implications – some could sink the business.

The Law Office of Lynette Ariathurai partners closely with businesses throughout the Bay Area to ensure they make sound decisions and provides strategies that resolve disputes efficiently and in a cost-effective manner. Take conflict seriously and seek trusted legal guidance. Click here for more information.

business disputes, Contract Disputes, employee disputes, partner disputes

Getting Off to the Right Start Involves Good Business Planning

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Tuesday, May 17, 2016.

Throughout California, there are currently many prospective business owners who may be wondering what the best course of action might be to get their companies off to the right start. Future business success often hinges on good business planning. Regardless of the type of business being launched, an ability to flourish often depends on a plan that was well laid out in the first place.

The Law Office of Lynnette Ariathurai, A Professional Corporation, provides sound legal counsel in all stages of business formation and start-up. Our experienced legal team is prepared to guide you through any potential legal challenges that may arise during the process. By acting alongside effective representation from the beginning, your chances for future business success may be increased.

Every company owner’s business vision is different. Depending on your particular plan, there may be personal liability factors, tax issues and a number of other important matters that may significantly impact your immediate and long-term goals. Our attorneys can offer clarification of the laws that govern California business and provide valuable insight as to what options may be available to help you maximize your chances for success.

Whether you are entering a sole proprietorship or partnership, we can explain the potential advantages and disadvantages of each from a legal perspective. By helping to protect your business interests now and in the future, The Law Office of Lynnette Ariathurai, A Professional Corporation, can help you reach your full potential as a California business owner.

If you have questions regarding good business planning, or are facing legal challenges during any phase of your business venture, you may call our office to schedule a meeting to discuss the situation with an experienced business and commercial law attorney. We work with businesses throughout the Fremont / East Bay area including Hayward, Union City, Castro Valley, Milpitas and Newark, CA.

Business Formation & Planning, business plans, starting a business in california

Common – And Critical – Errors That Can Sink A Business

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Business Formation & Planning on Wednesday, May 11, 2016.

Eager to follow their dream and make a profit off a great idea or their passion, many business owners make critical mistakes during the formation period. Some mistakes cause problems that can be corrected later – but far too many cause problems that can stunt or sink a business. It is critical that you have skilled legal guidance on your side as you establish a business to avoid common pitfalls and errors.

Here are a few of the most common small business formation mistakes:

Assuming they need an LLC – Most people have heard of an LLC and therefore automatically assume that it is the entity type they need legally protect their business. There are a broad range of types of business entities, however, and each accomplishes something unique. Sometimes an LLC is not the correct fit for a business and creating an LLC could leave the business – and its owners – exposed to risk. It could also severely inhibit growth of the company later down the road.

Assuming template forms and contracts are good enough – Many people simply download boiler-plate agreements and contracts online and then fill in the blanks. In a lot of cases, business owners do not even read these agreements and have no idea what kind of exposure they leave the business open to. Work with an attorney to create contracts and agreements that protect your company and meet its growth needs.

Assuming they can have an “understanding” with partners and shareholders – Many people go into business with friends, family and colleagues with whom they already have a great relationship. They neglect to write agreements to formalize the business relationship, including obligations, percentage ownership and entitlements. You can count on disputes arising at some point in the life of the business. If those disputes are severe enough, your lack of an agreement could cost you or your partner an entire ownership share of the company and all the hard work and resources that have been invested.

Assuming no one will steal their idea – The greatest asset a small business has is its idea. Whether that is the concept to sell purple popsicles from a food truck to the next great innovation in technology, someone will try to duplicate what you are doing. It is critical that you work with an intellectual property attorney to develop safeguards, patents, licenses and trademarks that will protect your idea and the ability of your company to extract return from that idea.

The Law Office of Lynnette Ariathurai partners with business owners and entrepreneurs to build a solid legal foundation that will facilitate growth, both in the early stages and throughout the life of the company. Investing the time into doing it right up front will pay in dividends later.

Business Formation & Planning, Contracts, entrepreneurs, managing partners, trade secrets

How To Resolve a Contract Dispute in California

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Thursday, April 28, 2016.

California is a beautiful state, teeming with businesses of all sorts, from major commercial corporations to small entrepreneurial endeavors. Though business models and effectual productions in each company vary, every business is at risk if a contract dispute arises. It is typically in a company’s best interests to solve each dispute in as swift, fair and economically feasible a fashion as possible.

The Law Office of Lynnette Ariathurai, A Professional Corporation, has successfully represented business and commercial clients throughout the state. Our experienced attorneys understand that a valid signed contract is legally binding. Each agreement carries certain responsibilities and obligations to which all signed parties must adhere.

If you are considering entering into a signed agreement, or you have already signed a contract and are facing legal problems because it has been breached, we can help you determine how to proceed to legally address the issue. Whether your situation involves a service agreement, management or wage issue, or an independently contracted assignment, we can review the contract and clarify the legal terms to help you make informed decisions about obtaining an agreeable solution to the problem. We are also prepared to help business clients draft new plans or contracts to help them avoid possible complications during the process.

A contract dispute can greatly impede the productivity and profitability of your California business. The Law Office of Lynnette Ariathurai, A Professional Corporation, is committed to offering sound legal counsel and effective guidance for all of your contract needs. One of our main goals is to help you accomplish your business objectives at minimal cost.

Contract Disputes, drafting a contract, legal agreements, service agreements

Protect Your Small Business from Disruptive Litigation

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Tuesday, April 26, 2016.

One of the greatest fears that many small business owners have is the potential to be sued. If they have set up the proper legal entities and worked with an attorney to structure their business in a prudent manner, lawsuits and litigation do not mean that the business is at risk of being wiped out.

Lawsuits are dangerous to a business, nonetheless. Studies find that even if the business wins the lawsuit, lawsuits still weigh heavily on the balance sheet. Additionally, litigation diverts the business owner’s time and attention away from operations, developing the business, growing and ultimately making money. In some cases, businesses often adapt their operations and change the way they do business to make up for time and resources lost on the lawsuit.

If there is a threat of a lawsuit, be proactive. Do not wait for the opposing party to take legal action. Contact a skilled business law attorney immediately. If handled proactively, your lawyer can start negotiations and help you avoid going to court.

These are things you need to look for in a business law attorney to protect your business and the toll that a drawn out lawsuit could take:

Choose an attorney who takes the time to understand your business model – Your attorney should be familiar with your day to day operations, your plans for growth, the relationships you rely upon, the relationships you hope to make and your financial situation. The more time your attorney spends becoming familiar with the bones of your business, the more customized the legal solutions can be and the better the outcome of the matter.

Choose an attorney who is not afraid to go to litigation – While the goal is to avoid court, sometimes it becomes unavoidable. Make sure that your lawyer has the experience to handle complex litigation – and is prepared to take the case to court, if necessary.

Choose an attorney who is willing to partner with you – The insight your attorney gains about your company through the course of the lawsuit will be invaluable for years to come. This firm can then partner with you through the future to create the legal structures and policies that will mitigate the risk of future legal battles – and create a foundation for long-term growth.

Attorney Lynnette Ariathurai is trusted by businesses throughout the Fremont area, including Hayward, Union City, Milpitas, Castro Valley, and Newark, CA. She invests the time and resources needed to understand her clients’ businesses from the inside out and provides solutions and strategies for a sound legal foundation that will facilitate growth.

business disputes, Business Formation & Planning, lawsuit, legal partner, litigation

Legal Challenges Not Uncommon When Selling a Business

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Sales & Dissolutions on Thursday, April 7, 2016.

There are any number of reasons why a California business owner may decide to relinquish ownership by selling a company. Often, legal challenges arise during the process of selling a business that may be best addressed through sound and experienced legal counsel. Sellers and buyers often have very different perspectives regarding potential deals, and sellers often want to make certain that the appropriate valuations are assigned to their businesses before allowing ownership to change hands.

There are various factors to consider when attempting to value a business. The most obvious is to add up all company assets to calculate a selling price. Both net and future potential incomes may also be considered when determining how much a business is worth. The bottom line is that business owners want to protect their interests when determining fair selling prices for their companies.

A business owner often obtains a professional valuation before negotiating a sale. As the process unfolds, at some point, a contract must be drafted requiring signatures of both the seller and buyer in order to finalize a sale. It is crucial to clarify all legal terms, obligations and fine print details in a sales contract to avoid possible disputes from arising.

Anyone selling a business in California who wants to discuss the matter with a business and commercial law attorney can do so by contacting a law office in the area to request a consultation. There are many ways in which an experienced attorney can be of service to a business owner during sale negotiations and contract resolutions. Whether assistance is needed to properly value a business, clarify state law or negotiate a contract dispute, a first logical step to take to resolve such issues would be to seek guidance from a local attorney.

Source: bizbuysell.com, “How To Value A Business“, Richard Parker, Accessed on April 6, 2016

business valuation, Contract Disputes, Sales & Dissolutions, selling a business in california

Strategies For Resolving California Business Contract Disputes

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Monday, March 28, 2016.

Running a business is a major undertaking that often involves various legal challenges from time to time. A successful California business owner never wants a contract dispute to get in the way of production or profitability. It is best to resolve such issues as soon as they arise.

Retaining the assistance of an experienced business and commercial law firm is one way to increase one’s chances of achieving positive results regarding contract disagreements. The Law Office of Lynnette Ariathurai, A Professional Corporation helps clients anticipate the full range of possible issues that may arise when seeking legal resolutions to contract problems. Our attorneys are dedicated to helping you accomplish your business objectives and legal goals at minimal cost.

It is crucial that all involved parties have a clear understanding of the legal terms and obligations inherent in a particular contract. The Law Office of Lynnette Ariathurai, A Professional Corporation can help you make certain that you understand all necessary information in order to make informed decisions to resolve a contract dispute. Your business interests are our legal priority, and we will aggressively litigate a contract dispute on your behalf should you determine that such a course of action is needed.

A contract dispute can slow down, if not bring a complete halt to business progress. Any company owner in California who is seeking answers to legal questions can contact our office to schedule a meeting. We are committed to helping you resolve your contract issues as favorably and expeditiously as possible.

contract disagreements, Contract Disputes, legal resolution, strategies