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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

Lay It All On The Table When Selling a Business

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

Businesses change hands all the time in California and throughout the nation. Typically, every company owner’s reasons for selling a business are unique to an individual situation. Various legal challenges may arise in the course of such transactions that are best dealt with alongside experienced guidance.

Business owners are advised to “lay it all on the table” when discussing deals with potential buyers. Otherwise known as “full disclosure,” it is often best to be upfront in terms of any troubling issues that may affect a prospective buyer’s decision. Being honest regarding any flaws that exist within a business provides the clarity a potential new owner needs to make informed choices.

Some experts say that being transparent and sharing the bad along with the good helps build trust and credibility that can boost negotiations. Consequently, trying to conceal negative business details may actually backfire and prevent a deal from taking place at all should a buyer learn that a current owner was less than forthright when providing information. Details about inventory backlog, financial crises or any number of other important issues may impact a potential buyer’s decision.

Depending on the size of a California company and various other issues involved in selling a business, an owner or potential buyer may find it helpful to seek assistance from a business and commercial law attorney before negotiating a deal. An experienced lawyer can help make certain that the client clearly understand the legal terms and obligations included in a business sale contract. Allowing an attorney to act on one’s behalf often ensures that one’s business interests are protected and all available options are explored to accomplish immediate and long-term business goals.

Source: postcrescent.com, “Go ugly early when selling a business“, Scott Bushkie, March 12, 2016

backlog, business sale, inventory, Sales & Dissolutions, transparency

Resolving Contract Dispute Issues in California

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Wednesday, February 10, 2016.

When company owners or their representatives sign agreements with other parties, they are binding themselves to certain responsibilities and obligations contained therein. Contracts are par for the course in business and are typically customizable to suit the needs and goals of those who add their signatures to the agreements. When a contract dispute arises, however, a California company owner may experience immediate adverse effects in a variety of areas that can threaten the very existence of his or her business.

Knowing where to go for legal help to resolve contract issues may be key to obtaining a swift and fair resolution to the problem. The Law Office of Lynnette Ariathurai, A Professional Corporation, serves clients in Fremont and surrounding regions. Our seasoned attorneys have dedicated themselves to helping company owners protect their legal interests and achieve both their short-term and long-term business goals.

It is important that all signatories possess a clear understanding of the legal terms and wording in a contract in order to make certain that everyone involved is aware of their individual obligations. Whether the issues you now face pertain to an independent contractor agreement, technology licenses or nondisclosure issues, we are prepared to help you address the matter. If basic negotiation and mediation is not enough to resolve the situation, we are ready to aggressively litigate the issue on your behalf.

The Law Office of Lynnette Ariathurai, A Professional Corporation, brings keen insight and decades of experience to the table that may increase your chances of obtaining a favorable outcome in court. We can anticipate possible issues that may arise during litigation of your contract dispute and offer guidance as to how address those issues in a way that helps you achieve your business goals. Our California practice is focused on helping you overcome your legal challenges and accomplish your business objectives in a timely manner at minimal cost.

contract attorney, Contract Disputes

Proper Business Planning May Bring Quicker Success

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporationposted in Business Formation & Planning on Thursday, February 4, 2016.

In 1988, two California brothers took a road trip to get inspiration for what to do with their lives. This trip led to them starting an enterprise selling T-shirts. It is not uncommon for young people to start off their careers buying and selling merchandise, but in many cases, no business planning is involved at the onset. The two young men, ages 20 and 23, started with limited funds and purchased a van to travel to different college campuses to sell their merchandise. They say that they failed a thousand times and struggled to make enough money to support themselves from month to month.

Their persistence helped them to persevere until 1994, when, with only $78 in their business account, they came up with the idea to print a positive message on their T-shirts. Their Life is Good line of merchandise was launched, and they say that was the start of their success. They continued their marketing from the van, but the results were disappointing. This was until a small shop bought 24 T-shirts, and sold them all within 14 days. Their sales totaled $87,000 by the end of that year.

They hired their first employee the next year and sold $262,000 in merchandise by the end of that year. They also moved their office from the van to an old shipping container in 1997 and recorded $1 million in sales at the end of that year. Through continued success, Life is Good now has an extensive range of merchandise that is available in 4,500 stores. They have approximately 160 employees, and their sales turnover has reached $100 million. The brothers donate 10 percent of the company’s annual profits to charities that help improve the lives of children.

Although these California brothers have built a successful business over about 28 years, only their determination carried them through the first nine years until their sales reached $1 million. The valuable advice of an experienced business attorney may help to get new enterprises on the track to success much quicker through effective business planning. Building such a relationship with a lawyer from the start may avoid many of the pitfalls that may be encountered as the business grows even more successful.

Source: businessinsider.com, “The fascinating story of how 2 brothers went from running a failing business out of a van to building a $100 million company“, Natalie Walters, Feb. 3, 2016

business attorney, Business Formation & Planning, life is good, sales growth