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Greater Bay Business And Real Estate Blog

How do you form a limited liability company?

There are many different types of businesses you can start in California, and all involve their own strengths and weaknesses. If you would like to take advantage of pass-through taxation while protecting your personal assets from business creditors, a limited liability company may be a good option. According to FindLaw, there is no minimum number of people required to form an LLC, which means you can form one yourself and enjoy some advantages of both a corporation and a sole proprietorship.

Forming an LLC is a relatively simple process consisting of at least three steps. If you are starting your business in California, you must have an operating agreement, and even if you start your business somewhere else that does not require it, having an operating agreement is still a good idea, because then you can set your own rules rather than having the state impose default rules that may not be a good fit for your business. If a court should have to consider your limited personal liability, an operating agreement can add legitimacy to your LLC business status. The purpose of the operating agreement is to outline the responsibilities and rights of all the members of your LLC, as well as dictating how they will run the business.

Understanding the most common business types

At Lawrence R. Jensen & Associates in California, we represent many entrepreneurs who are starting their own businesses. Consequently, we know how important choosing the proper business entity type can be for a start-up. We therefore thought it would be helpful to review the most common types of business entities here on our blog.

The Internal Revenue Service lists the following as the five most common types of business entities:

  1. Sole proprietorships
  2. Partnerships
  3. Corporations
  4. S Corporations
  5. Limited Liability companies

What is "just cause" for eviction in San Jose?

In April of 2017, San Jose followed the lead of other California cities regarding landlord/tenant laws and tipped the scales in favor of tenants. After seven hours of debate, four of which involved solely testimony, the city introduced two new ordinances. One of those ordinances was the Tenant Protection Ordinance, which requires landlords to have "just cause" to terminate the tenancy of month-to-month residents. Santa Clara County Association of Realtors details what "just cause" is.

Under the old state law, landlords could evict month-to-month tenants without cause so long as they provided those tenants with a 60-day notice. Under the new laws, however, a landlord must demonstrate that a tenant's situation meets one or more of 12 requirements in order for the landlord to be able to evict the tenant.

How to protect yourself when buying an existing business

For many, owning their own business is the ultimate dream. Business owners gets to be their own bosses, guide a business to success and create an investment that will pay off year after year. However, starting a business from scratch can be daunting. You have no idea if your business will succeed, and the startup costs are expensive.

Buying an existing business can provide a good alternative for people that want to become entrepreneurs. It eliminates some of the risk and potentially provides many of the same payoffs. Before you jump into a sale, there are several factors you should consider.

Mediation as an alternative to business litigation

At the law office of Lawrence R. Jensen & Associates, we understand that business disputes are inevitable from time to time. Along with other business owners in California, you may assume that litigation is the only way to resolve a dispute. Fortunately, business owners have other options that can help them fix an issue before it becomes too costly.

Before deciding on having a judge rule on your dispute, you may want to consider going to mediation. This form of alternative dispute resolution is popular in family law but is gaining traction in other types of legal disputes, as well. Mediation involves you and the other party meeting with an impartial third party, who may make suggestions as you and the other party discuss possible solutions to your dispute. As FindLaw points out, mediation is known for being cost-effective and taking less time than traditional litigation. The issues surrounding your case are also kept private during mediation sessions. Mediation’s advantages make it an attractive choice for businesses, especially small business owners who often lack the time and resources for a lengthy court battle.

Reaching out for help when starting a business

It is true that starting a business can be a challenging process. However, entrepreneurs can take steps towards putting themselves in a strong position to face and overcome difficulties that come up when a startup is getting off of the ground.

One such step is building up a solid support network. There can be all manner of issues for a person to tackle as he or she is launching a new business. It is important to remember that you do not have to go through the startup process alone, you can reach out for help.

Forming an LLC

There are many benefits to forming a limited liability corporation, or LLC. An LLC is more formal than a sole proprietorship or a partnership – in which the owners want to operate a small, closely-held business – yet less formal than a corporation in which a large number of owners engage in complex business ventures.

LLCs in California cannot provide professional services – defined as any service that requires a state license.

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Lawrence R. Jensen & Associates
95 S. Market St.
Ste. 550
San Jose, CA 95113

Phone: 408-465-0293
Fax: 408-899-2403
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