Corona Business Law Blog

Business lawsuits can ruin your bottom line and reputation

On behalf of Lobb & Plewe on Thursday, May 14, 2020.

Building a solid reputation for your business is crucial for a company to survive and stay competitive in your industry. The trust that you build with customers and vendors will not only affect the way the public views your company, but also your company's bottom line. The more your customers trust your company, the more likely they are to continue to buy and recommend your products and services. Unfortunately, what may take years to build can be quickly destroyed on a heartbeat, especially in the event of a messy legal dispute.

The cold hard fact is that at some point during its operation, almost all businesses will be involved in some kind of legal dispute, whether it is a dispute over a contract, employment issues, discrimination, liability, false advertising, or misrepresentation. No matter if the dispute is large or small, it could have the effect to negatively impact your business and the representation you fought so hard to build and preserve.

New federal overtime rules, part 2

On behalf of Lobb & Plewe on Thursday, December 12, 2019.

The recent changes in the Federal Overtime Rule have not only raised the salaries of many non-exempt (paid hourly) but also have changed the rules for overtime payments as well. Under the new rules, any employee who does not qualify for as exempt from overtime rules will be considered a 40 hour per week employee, which means that any hours they accrue over the 40 hours will need to be paid at the overtime compensation rate of one and a half times their hourly wage.

Workers who rely on tips for part of their pay will have their overtime calculated based on the minimum wage rate. The new rule also prevents employers from offering comp time, meaning they can't have employees work over 40 hours one week and fewer hours the next week without paying them overtime they are owed in the previous week.

New federal overtime rules, part one

On behalf of Lobb & Plewe on Thursday, December 12, 2019.

The Final Overtime Rule, Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees is set to take effect, leaving many executives and employers wondering how it will impact their current business structure.

Protecting your assets in private equity mergers and acquisitions

On behalf of Lobb & Plewe on Friday, October 25, 2019.

How can you protect your assets in private equity mergers and acquisitions? As these deals have grown larger and more frequent over recent years, investors have stumbled as often as they’ve succeeded. You don’t need to let this fact discourage you, but you should take it as a reminder that you need to start with a sound strategy.

Managed well, private equity M&A can lead to strong returns, but it’s important to understand how they work. Successful private equity firms will pursue deals that add value over a relatively short number of years. Then they’ll aim to sell before their returns diminish. There are plenty of potential pitfalls along the way, but you can generally avoid them by taking a clear-headed approach to the whole process.

Taxes and your disposable income

On behalf of Lobb & Plewe posted in tax planning on Monday, September 16, 2019.

New business owners who are creating a start-up company are often overwhelmed by the number of local, state and federal tax regulations that they must follow. Experienced business owners often find that they are so accustomed to paying taxes, that they inadvertently pay more than necessary in an attempt to remain in compliance with the endless tax laws that are implemented and changed on an annual basis.

Proper tax planning can ensure that business owners can remain in compliance with all tax laws, and tax optimization can prevent business owners from paying more than they owe in taxes. There's nothing more frustrating for business owners than to look around at their office and realize that they have been taxed at least once - if not twice - on everything that they can see and touch. They paid sales taxes on the office chair they are sitting on when they purchased it, and they paid business property taxes on the computer that is front of them. Not to mention, those revenue reports generated on the computer reveal how much of the business profits have been taxed on an annual basis as well.

Rules for out-of-state LLCs doing business in California

On behalf of Lobb & Plewe posted in tax planning on Monday, September 9, 2019.

Most individuals and organizations that operate limited liability companies, or LLCs, are only concerned about the tax laws and filing processes that are required by the state in which their LLC is registered. However, a surprising number of LLCs are required to fulfill tax filing obligations in the state of California, even if their business is not located within the boundaries of the state.

This fact confounds business owners around the country, but the fact of the matter is California has tax laws that require LLCs to file with the state if they are considered to be conducting business with businesses or residents in the state.

How SB 218 and AB 170 Could Impact Employers

On behalf of Lobb & Plewe on Tuesday, September 3, 2019.

As the 2019 California Legislative Session comes to a close in mid-September, employers around the state are closely monitoring two bills that may impact their employment processes. Senate Bill 218 (SB 218) and Assembly Bill 170 (AB 170) are two bills that focus on employee discrimination and how that discrimination must be handled by employers. Both bills, in their current forms, appear to prioritize the needs of the employee. However, these pieces of legislation may make it more challenging and more costly for employers to do business in the state.

Noting the complexity of the topic, both employers and employees are curious about the future of these bills. As the legislative session is set to be finished in just a few weeks, it is assumed by many that these bills will be approved and ultimately be sent to the governor to become law. The question is whether there will be significant changes made to the bills within the final weeks.

Look out business owners, here comes OSHA

On behalf of Lobb & Plewe on Monday, August 12, 2019.

Businesses have been put on notice that, once a group of 76 new inspectors are trained, OSHA plans to inspect more businesses for jobsite safety violations.

U.S. Secretary Alexander Acosta in April personally informed a House Appropriations subcommittee that OSHA inspections will become more frequent than they currently are.

New law helps business owners avoid asset seizure by the IRS

On behalf of Lobb & Plewe on Monday, August 12, 2019.

Being a small business owner can be at once rewarding and challenging. Having the IRS overseeing financial transactions and facing the possibility of losing assets to IRS seizure only makes matters more difficult.

Succession Planning: Structuring a Successful Plan With Tax and Non-Tax Considerations

On behalf of Lobb & Plewe posted in business law on Thursday, May 23, 2019.

No business should operate without a succession plan in place. The succession plan should have its imprint on the day-to-day operations of the business. Once you have a succession plan in place, the implementation of that plan will integrate itself into the fabric of decision making. Importantly as well, the timing of your succession will become real and tied to something other than a loose idea of someday transitioning out of your company.

If you work with Lobb & Plewe in putting your succession plan together, the initial step will include a detailed conversation regarding the possible avenues of succession. As an owner you may have already decided that family, a strategic buyer, a private equity firm or the employees, will end up owing the company. If preliminary determinations have not been made, all of the options will need to be reviewed. Once basic details have been discussed, L&P will start the draft of a Business Succession Plan (BSP) which is discussed in more detail below in this article.