The California Department of Housing and Community Development distributes a weekly news update from various sources. This week one of the articles was entitled "Housing crisis needs California lawmakers to build consensus now." The opinion article is from the San Diego Union-Tribune Editorial Board, January 27, 2017.
Business is subject to not only the statutes passed by the California Legislature, along with the administrative regulations promulgated to further carry out the statute's "purpose" but also rulings from the California Courts related to statutes and regulations.
Business operations in California are regulation challenged as each year adds additional statutes and regulations. 2016 was no exception. The California Department of Industrial Relations through the Office of the Director on December 28, 2016 issued its summary of all of the new employment statutes effective January 1, 2017. To review the new employment laws, click here.
Business in California, as well as individuals, will see a drop in the California Sales & Use Tax in 2017. Diane Hartley, Board of Equalization, distributed a detailed explanation of the sales and use tax drop from 7.50% to 7.25%. In addition to the California Sales & Use Tax, local jurisdictions may also impose sales and use tax with the combination resulting in a tax higher than 7.25%.
"With so many online incorporation services in the market, why should I retain a business attorney to help me incorporate and operate my start-up?"
Traditionally, directors of for-profit businesses are required to perform his or her duties in a manner that he or she believes is in the best interests of the corporation and its shareholders. This is often referred to as the duty to maximize financial return to shareholders. (Corp. Code § 309(a).) Today, some businesses are interested in more than just maximizing profits, which creates an inherent tension between the fiduciary duties owed to the corporation by its directors and the business operations of the corporation.
Last month, the California Supreme Court handed down a decision that held that businesses must pay employees that "retire" in the same manner as prescribed by the Labor Code for employees who "quit." (McLean v. California, 1 Cal. 5th 615 (2016).)
"I obtained a DBA ("doing business as") for my corporation by filing a fictitious business name statement. Does that mean that the name of my business is protected from others who may want to use it?"
A buy-sell agreement is a business contract most commonly entered into by individuals shareholders and the corporation. In simple terms, a buy-sell agreement is primarily used to restrict the transferability of the shareholder's shares of stock in the corporation by providing for the purchase of the stock by the other shareholders or the corporation upon certain predetermined events (e.g., death of a shareholder, insolvency of a shareholder, disability, retirement, attempt by shareholder to sell stock to a third party). By limiting the transferability of stock, the corporation's existing shareholders ensure that they remain in control and restrict the ability of third parties to obtain stock without their approval.