AdobeStock_439234126-300x155The key to any successful Silicon Valley business is hiring the right people. Indeed, the decision to hire a new employee is an important task for any business, whether it is a startup or a multinational corporation. But what are the legal issues you need to consider before you decide to bring a new person into your company?

SLG offers counseling on a wide range of California employment law issues to businesses in San Jose and throughout Northern California. Here are just a few of the key issues you need to think about when it comes to new employees.

Employee or Contractor?

AdobeStock_647582173-300x200When two parties enter into an intellectual property licensing (IP) agreement, it is not uncommon for disputes to arise regarding licensees using IP outside the scope of a license agreement. Such cases can result in IP litigation that can be extremely costly, and anybody with a possible IP dispute should quickly seek the help of a Texas intellectual property lawyer.

One of the major questions many people struggle to answer is whether a violation constitutes a breach of a license agreement, infringement of IP rights, or license infringement. A licensing agreement typically outlines the terms and conditions for the use of IP as well as the compensation a licensor will receive from a licensee, and a licensee who fails to follow the terms of the contract can allow a licensor to hold the licensee accountable.

Types of Licensing Agreement Violations

AdobeStock_714509522-300x200An intellectual property licensing agreement allows a person to retain ownership of a patent, trademark, or copyright but gives another party permission to use some or all of their intellectual property rights for a specific amount of time for a fee or royalty. Intellectual property contracts usually specify termination dates and procedures, and any person trying to craft an intellectual property agreement will want to be working with an Texas intellectual property lawyer.

After you secure your intellectual property rights, it can be more convenient or valuable to let somebody else use the rights in exchange for a fee. Such logic is exactly why intellectual property agreements and contracts exist, but the documents can be complex and may require intensive negotiations.

Key Intellectual Property Licensing Terminology

AdobeStock_626749959-300x200Litigation is rarely the desired outcome to any business dispute in Texas, but it often becomes necessary when alternative dispute resolution methods such as arbitration or mediation do not produce desired results. When any person is preparing for a possible litigation matter in Texas, they will want to have the assistance of an experienced Austin business litigation attorney.

Businesses have the power to resolve disputes on their own without having to go to court, but there are many times in which two sides will vehemently disagree and not be able to come to a resolution. Litigation is often the most effective way of determining which party is right and awarding any damages.

Making Demands

AdobeStock_194331054-300x200Every  business depends on contracts, and businesses in Texas are no exception. Whether discussing a simple purchase order or executing a more complex merger or acquisition, a contract sets forth the essential terms by which two parties exchange something of value. And while there is a certain romantic notion that contracts require “nothing more than a handshake”, if you are dealing with a complex transaction, it is generally best to work with a qualified contract lawyer. The Texas business transaction attorneys at Structure Law Group can assist you with various contracts that affect your business.

What Is a Contract?

In its simplest form, a contract is a legally enforceable promise. A contract requires some form of consideration by both sides. For example, if you agree to help your friend move in exchange for $100, that is a simple contract. In the context of a larger Texas business, however, a contract can involve obtaining insurance, working out a deal with a vendor, establishing employment terms for key employees, and even selling or acquiring a business.

AdobeStock_288950388-300x180Selecting a legal entity is often one of the first critical decisions you must make when starting a new business. But it is possible to change or convert one type of business entity into another if your needs or circumstances change. If you want to know more about the potential tax and legal implications of such a move, the Silicon Valley corporations attorneys at Structure Law Group are here to help.

The Advantages and Disadvantages of S Corporations in California

Let’s assume you currently have an S corporation, and you want to convert it to a sole proprietorship. What are the advantages or disadvantages of such a conversion? And how would you go about accomplishing it?

AdobeStock_357298238-300x111Corporate Transparency Act (CTA)

The Corporate Transparency Act (“CTA”) was enacted by the U.S. Bureau Department of Treasury to address growing concerns about the use of shell companies and other opaque ownership structures to facilitate financial crimes like money laundering, tax evasion, and terrorist financing. By making beneficial ownership information more readily available, the law aims to deter and disrupt illegal activities. The CTA establishes a national beneficial ownership information registry accessible to law enforcement and authorized government agencies.

When and how should my company file its initial report?

AdobeStock_621812775-300x200As we step into 2024, California employers need to brace themselves for a wave of new employment laws that will shape the dynamics between businesses and their workforces. A series of new legislation, along with revisions to existing laws, demand the attention of all employers. If you have particular inquiries about the implications of these new laws on your business, the California employment lawyers at Structure Law Group stand ready to assist you.

Here’s a concise overview of some pivotal new employment laws to consider as your business navigates 2024:

Non-Compete Clauses & Unfair Competition (Effective January 1, 2024):

AdobeStock_561003317-300x169Many startups in the San Jose area look to Delaware when establishing their corporate structure. You have probably heard that many top companies are incorporated in Delaware. Delaware is a popular state to form a corporation.  But what are the advantages to a Silicon Valley company operating in Delaware?  And how can you create your own Delaware company? The San Jose corporations lawyers at Structure Law Group, LLP can help answer these and other questions about the startup process.

What Are the Advantages of Incorporating in Delaware?

Despite being one of the smallest states, Delaware plays a significant role in corporate formation and law, offering numerous advantages. The state’s appealing tax laws are a primary factor for companies choosing to incorporate there. Corporations not conducting business in Delaware are exempt from the state’s corporate income tax, even if incorporated there. Instead, they are subject to a ‘franchise tax,’ which is typically much lower than corporate taxes in other states. Furthermore, Delaware offers considerable privacy for incorporators, requiring only the registered agent’s name on filings. Additionally, the state allows a single individual to establish a corporation and hold multiple corporate roles simultaneously.

AdobeStock_523210302-300x200One tool that employers have traditionally used to protect their business interests is to have key employees sign non-compete agreements. Such contracts are controversial and recently, the U.S. Federal Trade Commission proposed a new rule that would ban non-compete agreements nationwide.

Here in Los Angeles, California state law already heavily restricts the use of non-compete agreements. So if your business has questions or concerns about whether it can effectively use a non-compete, it is best to contact the Los Angeles employment attorneys at SLG to learn more about this area of law as well as other strategies used to protect a company’s interests.

In Los Angeles Most Non-Competes Are Illegal