Maintaining Corporate Records. Once a corporation is formed, you need to maintain corporate records, regarding the following documents: Bylaws Corporate minutes Statements of information A stock ledger Financial statements These documents are mandatory to lawfully run a corporation in California. The state informs that these businesses hold annual shareholder meetings, regular board of director’s meetings as well as meetings of any existing committees of the board. Furthermor

What Constitutes Sufficient Capital? A business entity, like a corporation, limited partnership, or a limited liability company should be sufficiently capitalized when formed. What constitutes “sufficient capitalization”? There is not an exact amount required for courts to consider a business sufficiently capitalized. It’s difficult to have a set amount because of diverse requirements and expenses among different types of businesses. For instance, a commercial real estate inv

Provide Sufficient Capital Funds for Your Corporatio Corporate Capital Funds is something else litigators dig deep for when searching to invalidate your business is under-capitalization. It may or may not be enough to expose the alter ego theory on its own. But with other factors, like inability to maintain corporate records, it could help the plaintiffs pierce your corporate veil immediately. CALL US AT OUR 24 HOUR CUSTOMER SERVICE HOTLINE: 1-800-562-0004 Our Business Hours

Start with a Properly Established Corporation Now anyone can form a corporation through a website service. While it’s accurately legal to do so, it’s not the brightest idea. Incorporating a business is the practice of law, and there are several business entities to choose from. These do-it-yourself legal websites don’t allow you to discover what the best business structure is for your business. Amongst these websites it is highly recommend in their terms of use that if your s

How can a business owner be added as a judgment debtor? While this situation appeals shocking, it’s completely avoidable. In this type of case, the business owners did little to protect themselves against these lawsuits. The most critical errors they made were not acknowledging corporate formalities and failing to maintain separation between themselves and their business entities. Among other things, they didn’t keep corporate records. They used corporate funds to pay persona

Adding a Business Owner to an Existing Judgment is now very simple in California. The California Court of Appeal recently made it more practical to add a business owner to an existing judgment against a limited liability partnership, corporation, or limited liability company (LLC). In Relentless Air Racing LLC v. Airborne Turbine Ltd Partnership (Dec. 31, 2013) 2d Civil No. B244612, the appellate court reversed the trial court’s conclusion indicating that the business owners

Proving Alter Ego Theory The Law Offices of Omar Zambrano know that it’s not difficult to prove that a small business corporation is just an alter ego of the business owner. The amount of effort depends on the separation kept between a business owner and his or her corporation. The plaintiff’s attorneys know precisely what to look for to prove that no distinction exists between you and your corporation. Some of the valid reasons they seek are included in the following: Improp

Alter Ego Theory and Litigation against Small Business Corporations. Litigators know ahead of time that some small business corporations easily avoid paying judgments against them by shutting their doors. If your company is sued, the plaintiff’s lawyers will search for ways to prove that you formed a business entity attempting to protect yourself with an invalid corporation. A plaintiff’s attorney will certainly look for evidence that your corporation is your alter ego. This

Are you concerned about your small business corporation being sued or losing liability protection in the event of a lawsuit? If you own any type of small business corporation in California, keep in mind that your business can potentially be sued. It’s possibly a reason you incorporated your company from the start of it – to protect your personal assets. CALL US AT OUR 24 HOUR CUSTOMER SERVICE HOTLINE: 1-800-562-0004 Our Business Hours are: Mon – Friday from 10:00am to 6:00pm

Will my standard insurance policy or a tenant’s renter’s insurance policy cover damages caused by pot smoking? Generally, insurance companies do not have to cover damage caused by illegal activities. If you live in a state with marijuana legalized in some form, it is important to contact the insurance company in question to ask if they would cover such damage or decline coverage based on the federal illegality of marijuana. CALL US AT OUR 24 HOUR CUSTOMER SERVICE HOTLINE: 1-8