Drafting a Social Media Policy for Your Employees: Part 2

December 19, 2014,

Does your company have a social media policy for employees? Policies regulating Internet use in the workplace can be very effective for maintaining your business' positive reputation online. Last week, we discussed the first 3 items to think about when writing a social media policy. Here are 3 more considerations for writing an effective and appropriate company-wide policy.
iStock_000028843778Large.jpg

3 More Considerations When Drafting a Social Media Policy

1. Define "Appropriate"
Your employees need to know what is acceptable to say online and what isn't. Make sure you set clear boundaries on what business and trade information is private and for internal-use only, and what information is acceptable for online discussion or even marketing purposes.

2. Help Employees Understand
One of the first steps to starting a business is determining your objective. Keep this objective in mind when drafting a policy. Employees are most likely to follow the rules if they understand why they're in place. Social media is so connected to life today that often employees don't realize the harm in what they're posting. Try linking to appropriate articles which outline the necessity for company-wide social media policies and encourage employees to think before they post.

3. Equality
Don't create separate social media policies for different job titles; a good policy covers every employee in the company. By treating everyone equally, employees will perceive the social media policy as being more fair, making them all the more likely to follow it.
In order to be considered constitutional, a company social media policy should respect employees' basic rights of free speech. Under the National Labor Relations Act, employees have a right to discuss their workplace as long as it is not libelous or inflammatory.

A well-written social media policy is a great way to control your business' reputation online and on social media. For help drafting a social media policy for your employees, or assistance with the first steps to starting a business, contact the experienced team at Structure Law Group today.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Drafting a Social Media Policy for Your Employees: Part 1

December 12, 2014,

Instituting a company-wide social media policy is one of the best ways to protect your business's brand and image on the Internet. Disgruntled employees may say negative things about your business online, harming your reputation and putting your company at risk. A well-written social media policy sets reasonable restrictions on your employees' use of the Internet. Here are 3 considerations to think about when drafting a social media policy.
iStock_000018931595_Full.jpg

3 Considerations When Drafting a Social Media Policy

1. Read Other Policies
It's important to do your research when writing a social media policy for employees to make sure yours is in line with current industry standards. You don't want to institute a policy so unforgiving that you drive potential talent away from your business. Search for other social media policies and contact an experienced lawyer to make sure your policy is appropriate.

2. Be Specific
Aside from the obvious requirements (be ethical, mindful and maintain a positive presence online), you may also consider adding specific limitations on employees' use of social media. For example, consider having employees identify themselves as such when discussing the company online and requiring them to disclose that their opinions do not necessarily reflect the views of your business.

3. Monitoring Social Media
It is important to consider how you plan to monitor your employees' use of social media. If you prohibit this activity at work, you lose your way to monitor what your employees are doing online, so consider this before placing an outright ban during work hours.

Does your business have a company-wide social media policy? Stay tuned for Part 2 of Drafting a Social Media Policy for Your Company [insert link to part 2 when it goes live], where we discuss 3 more items to consider before you begin writing. For help on drafting a social media policy or assistance with the first steps to starting a business, contact your talented team at Structure Law Group today.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

4 Steps to Building a Successful Business

December 5, 2014,

Are you thinking about starting a business? The success or failure of your business venture depends on your ability to plan ahead, take action, and respond to what happens after your idea becomes a company. Here are 4 actions to consider on your path to business success.
bizsuccess.JPG

Building a Successful Business: 4 Steps

1. Clearly Define Your Vision and Goals
Business success comes through hard work and dedication. Having a clear vision and measurable goals is the first step. Write down your plans for the future of your company, both short term and long term. It can also be helpful to scout out your competition to see if your plans will hold up in the market. This is known as market research, and it will allow you to identify whether a similar product or idea is already out on the market.

2. Keep Detailed Records
By keeping detailed records from the start of your venture, you are more likely to be successful in financial and operational matters. Record all details of company finances, personnel, contracts negotiated, and investment opportunities. Hiring a lawyer can help keep the foundation of your business solid. By having all records organized, you will likely see trends and potential pitfalls in your company, giving you the foresight to plan ahead.

3. Set New Challenges
Setting challenges is a great way to motivate yourself and continue building a successful business. Keep lists of your dreams and accomplishments and always aim higher after you achieve each new goal. Once you have a successful product or idea out on the market, you can add to it and take it a step further, or you can branch off and create a complimentary product.

4. Balance Risks and Rewards
Achieving business success requires risks which may bring fruitful rewards. Understanding the risks you may have to take is important when starting a business. Ask for advice from other entrepreneurs and don't act on impulse when faced with a decision. Always weigh risks with their benefits, asking yourself what you stand to gain from the situation at hand.

Building a successful business requires dedication and a clear vision. Staying up to date on small business laws in California can be time consuming. Leaving such matters to a dedicated business attorney allows you to focus on what is most important: day-to-day operations, growing your business and achieving your goals.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

A Guide to Crowdfunding: Potential Legal Issues

November 28, 2014,

Crowdfunding is a great way for individuals and companies to fund new businesses, projects, and products through the Internet. With the advent of crowdfunding sites like Kickstarter and Indiegogo, it is easier than ever to fund your new business venture with the help of online supporters.

If you've heard anything about crowdsourcing money online as a source of achieving your startup dreams, you may have wondered what some of the legal consequences may be that are associated with taking "donations" from the public. Here are 3 potential legal issues that arise from using crowdfunding to support your business.

iStock_000026261765Large.jpg

Crowdfunding Sites: 3 Potential Legal Issues

1. Choose the Right Structure for Your Business
When you post your project on a crowdfunding website, if you haven't formed a business already, you are now a sole proprietor by default. This type of business structure comes with its own benefits, but keep in mind that this might not be the type of business entity that's best for you. There may be another business entity that is better suited for your business needs. Consider forming your entity with the help of a lawyer before posting your project to avoid being locked into the wrong type of business structure.

2. Obey the Laws
There are several regulations about trading assets over crowdfunding websites, particularly with equity investments. The SEC has not yet worked out laws to exempt crowdfunding from other fund-restricting provisions. To make sure you are well aware of all ramifications of trading approved by the SEC, it may be helpful to contact a business lawyer to protect yourself.

3. Plan Ahead
Since crowdfunding sites make it easy to make your project public, many people do not fully plan the logistics before launching a campaign. Be sure you have coordinated efforts with all partners, are ready to start your company and have a plan for reward fulfillment when the campaign ends. If you do not fulfill your commitments to your backers, you may have to refund your backers or face legal ramifications. It's also critical that you protect your intellectual property, such as trade names and patents before you put your project on a crowdfunding website. A business lawyer can help you protect your intellectual property before you make your business public.

As you start to create your dream project on GoFundMe, Kickstarter or Indiegogo (just to name a few websites that are available for crowdfunding), legal ramifications of crowdfunding may be the last thing on your mind. There can be plenty of extra work for a creator when starting a crowdfunding campaign like the marketing video, writing the introduction to your idea and planning rewards for investors. Nonetheless, it's important to meet with a business lawyer to protect yourself and your new business.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Obtaining Licenses and Permits for Your Business

November 21, 2014,

In any business venture, compliance with applicable laws and regulations is essential. These vary significantly depending on your industry and the jurisdiction in which you operate. In some cases, you may be subject to licensing and permitting requirements on the federal, state, and municipal levels. While many entrepreneurs are understandably excited to begin operations, failure to obtain the required licenses or permits can have serious consequences. In some cases, noncompliance with the applicable business regulations in your jurisdiction could even result in criminal charges or significant fines, potentially putting you out of business.

structurepermits.JPG

Regulations regarding business licenses and permits are often voluminous and difficult for even sophisticated business people to understand. Anyone considering starting or expanding a business in California should contact an experienced attorney to discuss their circumstances.

In the meantime, here is some information about some of the more commonly required business permits and licenses.

State Professional Licenses

In California, there are several professions which require a license to legally practice. For instance, lawyers, physicians, dentists, nurses, professional engineers, cosmetologists, psychologists, and real estate agents must be licensed by the State of California. More information regarding professional licenses can be found on the California Department of Consumer Affairs website here.

City and County Business Licenses

Many cities and counties require businesses operating within their jurisdiction to obtain a business license. Generally, whether you need to have a business license depends on a variety of factors, including whether you are selling retail goods or whether your business has an actual physical presence. In some cases you must also ensure that your business complies with applicable zoning or use laws. If it does not, you may be able to obtain a conditional permit or variance in order to legally operate.

Federal Licenses

While most businesses will not need to obtain any federal licenses, those operating in certain industries might. These industries include telecommunications, energy, hazardous waste management, and meat processing.

Permits Granted by the Health Department

Any business that sells food to consumers is subject to permitting and inspection by the local health department. Failure to do so can result in your operations being shut down.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Business Entrepreneurship: 4 Keys to Achieving Success

November 14, 2014,

Breaking away from the rest and forming your own business is a dream for many people. Business entrepreneurship can be a risky but rewarding venture, and it's possible to achieve great success in your new company. Although running a business takes a lot of hard work and has challenges, you can reach a high level of success. Here are four keys to achieving great things as a business owner, as well as some advice from successful entrepreneurs.

iStock_000023535855Large.jpg


Business Entrepreneurship: 4 Keys to Achieving Success

1. Hire a Lawyer
"Surround yourself with great mentors."-Thalej Vasishta, CEO, Immigration Lawyer

Sound advice and a strong team to lean on are essential for entrepreneurs. One of the first things you should do when starting your company is hire a lawyer. Choosing a business entity and licensing can be intricate, so have all paperwork looked over before making big decisions. A good business lawyer will be able to guide you through the whole process and assist you in protecting your intellectual property rights along the way.

2. Keep Thinking Ahead
"You can't ask customers what they want and then try to give that to them. By the time you get it built, they'll want something new." - Steve Jobs, Co-founder of Apple Computer Inc.

As you complete each project, think, "What's next?" Always keep new opportunities on the horizon and picture yourself and your company in the future. Don't be afraid to reach out to other entrepreneurs and ask for advice; they have likely been through the same trials and can offer you valuable advice.

3. Embrace Change
"In business, change sometimes happens more quickly than you want it to-transformative technologies arrive suddenly and economies shift." -Richard Branson, Author and Founder of Virgin Group

Successful entrepreneurs know a good idea when they see one, but they also know when to pull the plug when one isn't working. Don't be afraid to walk away if your initial idea does not pan out; you can always think about what you could do differently in the future and use these lessons to improve your future business endeavors. If you have an idea you think is gold, go for it! Success in business entrepreneurship takes calculated risks, so jump when you see an opportunity within reach.

4. Stay True to Yourself
"Remain the same person throughout all the successes and failures of your career." - Angelo Sotira, CEO and cofounder of deviantART

Although your goals may change over time as you run your business, remember your values and who you were when you started. It's important not to lose yourself or your message on your path to success. If you find that you are passionate about what you are doing, your business will be built upon your talent and strengths, and you will have a stronger chance of success. Aside from building a profitable business, you will also be happy with what you spend your time doing.

Successful entrepreneurs are always willing to learn and experiment. There is no magic formula to business success, only hard work and determination. Are you interested in starting your own company but don't know where to start? We would love to accompany you on your journey to success. Contact your team at Structure Law Group today!


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Consider Your Options: Pros and Cons of Mediation and Arbitration

November 7, 2014,

Sometimes, avoiding litigation in a legal dispute is the best way to achieve a resolution. Mediation and arbitration may be viable alternatives to reduce the time and money spent litigating. Here are some pros and cons to choosing meditation vs. arbitration when deciding whether or not to opt for avoiding litigation.

Thumbnail image for iStock_000024834826Medium.jpg

The Pros & Cons of Mediation

Pros:
1. Control

In mediation, you must sign in agreement of the final decision. This gives you control over your approval of the ruling. You also reserve the right to litigate if the mediation fails, making this a less costly alternative to heading straight to court.

2. Impact on Future Relationship
The likelihood of a future relationship with your opposing party can impact your decision of mediation vs. arbitration. When a mediation occurs, both parties are given time to present their cases, discuss the dispute and attempt to come to a resolution. Since this is facilitated by an unbiased third party, potential damage to the relationship of both parties in the future is less likely to occur.

Cons:
1. Flexibility

Though it is also a positive, flexibility in the terms of an agreement reached by mediation can be bad for one or more party. Terms of the mediation can be amended at any time. For those that want more finality in the resolution, mediation may not be a good option for you and avoiding litigation may not be possible.

2. Time
Mediations tend to be quicker than litigation, but if an agreement is not made then both parties may have wasted their time. Having an unskilled mediator may also contribute to an unproductive resolution and the dispute may continue on into court.


The Pros and Cons of Arbitration

Pros:
1. Speed

Arbitration can be quicker than litigation because the allotted time periods for resolution may be shorter. However, cases with multiple arbitrators or more complicated disputes may occasionally take longer than litigation.

2. Confidentiality
Since the conflict is resolved outside of court, the records are sealed protecting the identities and conversations of all parties. This can be a good option when trying to mitigate public damage from a legal dispute. When you want confidentiality, the options of mediation vs. arbitration are always more favorable than litigation.

Cons:
1. Fairness

In some disputes, such as those with large corporations or multiple arbitrators, you may be at a disadvantage when pushed into the arbitration process. Some arbitrators frequently work together and you may be discriminated against.

2. Finality
Arbitration rulings can be tough to appeal which makes it difficult to resolve issues even if a mistake has been made in the process. There is no jury in arbitration, which can be a hard right to give up. The arbitrator acts as judge and jury, so you are leaving your fate in their hands.

When faced with a lawsuit, it is always best to consider your options. When avoiding litigation, consider the pros and cons to mediation vs. arbitration. Contact your team at Structure Law Group today to get help in making the right decision for you.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Choosing the Right Business Entity

October 31, 2014,

Among the most important decisions a business owner or entrepreneur can make is determining what business entity best suits their needs. This decision can affect how much you pay in taxes, the amount of paperwork that you will need to do, your own personal liability, and your ability to raise capital by issuing stock. Additionally, some business formations require certain formalities in order to be in compliance with state and federal law.

Thumbnail image for small business.JPG

Of course, every business is different, and what may be an appropriate business entity for one venture may be completely inappropriate for another. Business ventures that anticipate rapid growth or are formed with the intention of being acquired by another company may choose an entity type that may be unnecessarily onerous at startup but allow growth and compliance with federal securities laws, preempting the need for a potentially costly reorganization down the road. For these and other reasons, it is best for anyone considering forming a business entity to discuss their goals and options with an experienced Silicon Valley business lawyer before filing any paperwork with the state.

In the meantime, here is some basic information regarding the some of the most commonly used business formations:

Sole Proprietorships - A sole proprietorship is perhaps the most common type of business that exists today, and many people may own one without knowing it. Sole proprietors are simply individuals who engage in some sort of business venture for themselves. There are no filing requirements to start a sole proprietorship, and they may even do business under an assumed name if they choose to file a fictitious name with the state. One of the main drawbacks of sole proprietorships is that the owner can be held personally liable for all obligations incurred by the business.

Partnerships - A partnership involves two or more people who work together in a common enterprise and share in the profits and losses of that enterprise. Like sole proprietorships, partnerships can be formed without any state filings, and can actually be formed with a simple oral agreement. In some cases, a court may even determine the existence of a partnership even in the absence of an agreement. All partners are jointly and severally liable for the financial obligations of the partnership and profits or losses pass through to the partners for the purposes of taxation.

Corporations - A corporation is a legal entity separate from its owners created to conduct business. Because it is a separate entity, a corporation has the benefit of shielding its owners from personal liability for the debts or other obligations incurred by the corporation. One of the main disadvantages of a corporation is the legal requirements associated with formation and ongoing operations, which make them better suited to large, well-established businesses.

Limited Liability Companies - Limited Liability Companies are a relatively new business formation favored by many startups and small businesses because they combine the flexibility of partnerships with the liability protection of corporations. An LLC has the same limited personal liability as a corporation that is provided by state law and gets treated as a Partnership for Federal tax law purposes.

Choosing a business formation can be a complicated decision with far-reaching implications on the success and operation of your business. If you have any questions at all regarding business formation or any other matter related to business law, the skilled lawyers at Structure Law Group can help you. Please do not hesitate to call us today at (408) 441-7500 for assistance today.


About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

4 Steps to Starting a Business

October 24, 2014,

Do you have a great idea but aren't sure how to start a business? Creating a startup can seem daunting at first. There are many questions to consider when defining what type of business you want to start and figuring out what it will look like once your plan comes to fruition. There are also a few legal activities you need to complete before you can open up shop. Here are 4 steps to starting a business and some tips to help you get started.
iStock_000026890322Medium.jpg
4 Steps to Starting a Business

1. Determine Your Market and Specialty

Before you create a startup, you'll need to determine what product or service you will offer your clientele. Make sure that your offering is focused enough so that your brand will become easily recognizable alongside your product or services. Once you determine what you will offer your customers, you need to think about your target market. This is known as conducting market research. Where is there a demand for your products or services in the market? Is the market already saturated with the products or services you plan to offer? Make sure you are able to utilize enough of the market share for the products or services you will be offering.

2. Select Your Business Type

There are many different types of business entities, such as sole proprietorships, limited liability corporations, partnerships or corporations. Each of these has its own advantages and disadvantages when starting a business. Hiring a business lawyer is a good way to determine which business type will best suit your startup's needs and protect both you and your company's interests. The team at Structure Law Group offers expert advice and council to make sure that when you start a business it's done the right way.

3. Register Your Business

When you're starting a business, you need to pick a company name that will be relevant for years to come. Pick something catchy enough to remember that also aligns with the brand you are trying to portray. Once you've picked a name for your startup, contact a lawyer to help you get your business registered, licensed and trademarked.

4. Write a Business Plan

A well-written business plan will help you chart measurable goals for the future. Your business plan will change over time as you amend or add ideas. In general, try to project your plans about 3-5 years in the future. Be sure to include financial information, like potential funding opportunities, a detailed marketing plan, and information about your company's mission and values. A solid business plan will also assist you in securing future funding for your startup.

If you follow these four steps, your startup will be set up for success. Remember, when starting a business, it is always important to consult a business lawyer like those at Structure Law Group to help you with any paperwork or legal decisions.

About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

How an Attorney Can Help With Your Small Business

October 17, 2014,

Deciding to start a small business can be both exciting and stressful, and seeing your business succeed can be highly rewarding.

The reality of starting a small business is, however, that forming and running a business is generally far from a simple task. Business owners must have a viable idea, the necessary supplies to bring that idea to fruition, and a client base to keep the business afloat. Furthermore, small business owners in California must always ensure that they are in full compliance with numerous federal and state laws and regulations. This can be particularly daunting as many entrepreneurs may be largely unacquainted with all of the applicable laws, and may not have the time or expertise to familiarize themselves with such regulations.
small business.JPG
If you are a small business owner, a California business attorney can advise you on all the essential steps you must take in order to comply with all necessary laws.

A business attorney can make sure you remain in compliance throughout all of the stages of your business, whether you are forming your business, or ready to dissolve your business and move onto a new venture. A lawyer can answer your questions and assist you in the following matters and more:

• Choosing the best business entity for you
• Legal formation of your business
• Drafting articles of incorporation
• Drafting operating agreements and bylaws
• Drafting buy-sell agreements
• Securing all necessary licenses
• Applying for and receiving all necessary permits for your business
• California Secretary of State filings
• Lease agreements
• Protecting your intellectual property
• Drafting employee contracts
• Complying with all employment laws
• Business transactions and contract review
• Contract dispute resolution
• Collection efforts
• Restructuring after bankruptcy
• Resolving partnership disputes
• Dissolution requirements

As a small business owner, you will face many legal decisions and issues on an ongoing basis.

If you make the wrong decision or fail to comply with a federal, state, or local law, you may find yourself facing expensive penalties, sanctions, or even watching your business get shut down. A quality small business attorney will be able to assist you with legal matters from the start to finish of your business tenure. A lawyer will also stay familiar with any changes in relevant business laws and can advise you on any necessary actions in response to these changes.

Contact Structure Law Group for help with your small business.
Staying up to date on all laws relevant to small businesses can be time-consuming and leaving such matters to a business attorney allows you to focus on what is most important--day-to-day operations, growing your business, and achieving your goals. Whether you have a sole proprietorship, partnership, limited liability company (LLC), corporation, or other type of small business, the dedicated lawyers at the Structure Law Group in San Jose, California can help you. Please do not hesitate to call us today at (408) 441-7500 for assistance today.

About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.


5 Common Legal Mistakes Business Owners Make

October 10, 2014,

As much as you may want to avoid litigation when it comes to your business, conflicts arise and are sometimes unavoidable as a cost of running a successful business. While you and your business partners may have other philosophies on handling workplace issues, sometimes litigation is the best course of action to deal with messy company separations, distribution of assets, protecting your property, and sometimes even handling suppliers and consumers.
iStock_000024834826Medium.jpg

As a business owner involved in litigation, you don't need to resort to spending years in litigation or paying unreasonable settlement sums; you need to build strategies with a business lawyer so you can resolve conflicts efficiently and effectively, and maximize your ability to avoid future disputes. When litigation is initiated, it is important that it is done right to avoid unnecessary mistakes that waste all parties' time and money.

Here are 5 common legal mistakes business owners can make when stepping into legal territory, and how to avoid them.

1. Not Taking the Lawsuit Seriously. If you know you haven't done anything wrong, it can be tempting to avoid hiring a lawyer at all. Developing a strategy, finding and interviewing witnesses, and getting paperwork in order can all be costly to your business if not done properly. To ensure you can keep your full attention on business operations during the lawsuit, hire a litigation attorney who specializes in helping business owners.

2. Not Considering Other Options. Sometimes in sticky litigation battles, one or either party may be too eager to settle before taking full stock of all assets at stake. Mediation and arbitration may also be other options to consider before going to court to save money on fees and avoid long delays.

3. Making Decisions Based on Emotions.
Being involved in litigation can be a highly emotional experience, and it can get very difficult to make important decisions that will affect your business. Instead of making impaired decisions based on your emotions, work with a business litigation attorney to come up with a strategic plan based on a cost-benefit analysis. Remember that the dispute is business related, and not personal.

4. Keeping Information from your Lawyer. Your lawyer is there to help you navigate the process, so it's imperative that you keep your lawyer apprised of all relevant information. Sometimes it may be overwhelming and frightening to present the "bad facts" to your lawyer, but hiding facts can seriously impact your chances of success in settlement discussions or in court.

5. Using the Wrong Lawyer. Be sure to do your research when it comes to finding a lawyer that specializes in the type of dispute you are a part of. The right lawyer will be able to provide you with objective advice that is best suited toward your business. Business can be extremely personal so it can be easy to overlook pertinent facts. To avoid clouded judgment and conquer inflexibility, always consult legal counsel to ensure your best chances of success. If you need advice or assistance on how to proceed, contact your team at Structure Law Group.

About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

5 Items to Include in a Real Estate Purchase Contract

October 3, 2014,

5 Items to Include in a Real Estate Purchase Contract

When you make an offer on real estate you want to buy, there can be a lot of paperwork involved. Many additions to real estate purchase contracts are obvious, such as the address of the property, purchase price and owners. Here is a list of 5 things to consider and include when drafting a real estate purchase agreement.
iStock_000015837825Medium.jpg

1. Legal Description of Property

Be sure to include a legal description of the property, including zoning information. In commercial real estate, this is more than just the mailing address of the property. Legal descriptions must include proper nomenclature used by the U.S. Public Land Survey System, including zoning codes. If the description is not included, the real estate contract may be invalid.

2. Closing Costs

You want to establish who pays closing costs in the real estate purchase contract. The buyer and seller should specify who is responsible for common fees such as escrow fees, title fees, title insurance, transfer tax and notary fees. If you want the seller to pay all or part of the closing costs, make sure to specify this in your offer. In California, the location of the property is used to determine how fees are divided.

3. Inspection Contingency

Make sure to include an inspection contingency in your purchase contract to protect yourself if a serious issue with the property comes to light after an inspection is conducted. This includes the buyer's right to cancel the sale after conducting due diligence.

4. Closing Date

Common time frames for closing dates are 30 days, 45 days and 60 days. You should allow sufficient time for closing contingencies, including financing the transaction.

5. Right to Modify Purchase Agreement

Allow yourself room to amend or modify the purchase contract after its completion. By adding a clause allowing the right to amend of modify, both parties may amend the purchase contract after it has been completed. Keep in mind that this does not change the original contract and large amendments are usually better done by creating a new contract.

By including these essential items in your real estate purchase contract, both the buyer and the seller are protected and the purchase is transparent for both parties. Be sure to sit with an experienced real estate lawyer before making final decisions.

About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Sole Proprietorships: Advantages and Disadvantages

September 26, 2014,

Sole Proprietorships: Advantages and Disadvantages

Many small businesses in the United States operate as sole proprietorships. In fact, this is the most common type of business and is business in its simplest form. In this article we will discuss some advantages and disadvantages of sole proprietorships and more specifically, owning and operating a sole proprietorship in California.
iStock_000026890322Medium.jpg

Advantages of Sole Proprietorships

· Low start-up cost. Since there is no legal distinction between the person and the business entity, the sole proprietor is not required to register as a legal corporation. This saves on filing costs. Here in California, there is also a high minimum tax which sole proprietors avoid.

· No business taxes. Income generated through the business is reported and paid on the sole proprietors' personal income taxes.

· No annual compliance. Unlike corporations, sole proprietors are not required to pay annual fees to retain their legal status.

· Simplicity and speed of setting up your business. While starting a sole proprietorship, LLC or corporation requires compliance with licensing, local laws and regulations, individual owners of sole proprietorships have lower overhead costs and speed though the process.


Disadvantages of Sole Proprietorships

· Personal liability. Since the business is not legally separate from the owner, the owner is personally responsible for all debts and transactions.

· Fewer investment opportunities. Once an investor or partner has joined the business, it is no longer a sole proprietorship. The transformation of the company will require compliance with licensing requirements and filing fees. As a result, it may be hard to find an investor to back your company.

· Debt. Many sole proprietors have dipped into personal assets or acquired loans to start their company. Since a sole proprietorship is not a formal business entity, personal loans may impact the owner's credit score.

Is a sole proprietorship the right decision for you and your business? Your team here at Structure Law Group would be happy to help you start your sole proprietorship or answer any questions you may have. You can find more about the services we offer here.


About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

Pros and Cons of a C Corporation vs. an S Corporation

September 19, 2014,

Pros and Cons of a C Corporation vs. an S Corporation

Selecting a business entity is one of the most important decisions an entrepreneur faces. There are numerous options including sole proprietorships, partnerships, limited liability companies and corporations. To make things even more complicated, there are two primary types of corporations, each with its own benefits. In order to ensure you choose the best business entity for your purposes, you should always conduct careful research and consult with an experienced California business attorney to discuss your options.

Once you have decided you want to incorporate, your options are to form a regular C Corporation or an S Corporation. Though these two types of corporations are quite similar, there are a few key differences that can determine which one is right for your business.
iStock_000034372018Medium.jpg

3 Similarities between S & C Corporations
The following are a few ways that an S Corporation and C Corporation are alike:

1. Both types of corporations are owned by the shareholders, who have protections from liability for business debts and most business-related legal matters.
2. Both are structured the same way: the shareholder/owners elect a board of directors that oversees major issues. The board of directors then elects officers, who handle the day-to-day operations of the business.
3. Both must comply with state law regarding document filings, fees, bylaw and more.

Differences Between S Corporations and C Corporations

The most important difference between an S Corporation and C Corporation is the way that they are taxed. In both cases, shareholders pay taxes on dividends of any distributions of profits. A C Corporation, however, may also be taxed on the corporate level, which means it may be subject to double taxation. On the other hand, the taxes for an S Corporation all pass-through to the shareholders, so there is only single taxation. This pass-through taxation is authorized by IRS Code, Subchapter S of Chapter 1.

Though the single taxation of an S Corporation likely sounds preferable, the S Corporation entity is not an option for every business. Another difference between the two is that, while a C Corporation can be quite large and have numerous shareholders, an S Corporation may only have a maximum of 100 shareholders. In fact, the IRS created Subchapter S in part to encourage small businesses and entrepreneurship. Therefore, the size of your business may play a significant role in the type of corporate entity you choose.

If you have any questions about C Corporations, S Corporations, or other business entities, do not hesitate to contact an experienced attorney at the Structure Law Group for assistance today.

About Structure Law Group
Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.

How to Write an Employment Contract

September 12, 2014,

An employment contract can be a useful tool to protect your business while providing clarity and structure for your employees. An effective agreement should clearly spell out the terms of both employment and termination. In this post we'll take a look at the basics of creating an employment contract.

contract.jpg
Understanding Employment Contracts

A well-designed contract outlines an employee's roles and responsibilities. What tasks is the employee expected to perform? What does the job pay? What benefits will the employee receive? Clearly stating this information upfront will protect your business from future lawsuits, provided you abide by the contract.

You'll want to be specific that the employment relationship is at-will. This means either the employer or the employee can terminate the agreement at any time for no reason. If instead it is not at-will, you should be sure to spell out the grounds for termination.
One thing to keep in mind is what happens after an employee is either terminated or leaves. Who owns the right to any material he or she produced? What about confidentiality? An employment contract can protect your business by safeguarding its intellectual property.

Advantages of Employment Contracts


Besides offering reassurance, an employment contract can be a great way to attract new talent. Think of a contract as an offer sheet. You're providing a prospective employee with job security and a clear path to success.

Contracts can also make it easier to manage employees. The expectations can be laid out for all to see, which means there's less gray area. Unfortunately, not all employees work out and a contract can avoid any confusion between employer and employee as to whether it is working out or not. make it easier to terminate employment should the need arise.

If you're thinking about putting together an employment contract, contact the professionals at Structure Law Group. We can help you create something that is specific to your business and adheres to the law.

About Structure Law Group

Structure Law Group is a San Jose based firm that specializes in business issues including business formations, commercial contracts and litigation.