San Jose business lawyer

Important Considerations When Hiring a New Employee

March 25, 2016 | Structure Law Group, LLP

Hiring and retaining employees is critical to success in business. While successfully managing a workforce has many components to it, understanding the basic components of the employment relationship not only protects the company when hiring, but also helps to set the expectations for new and existing employees. Clearly articulating expectations – such as whether the employee is hired at-will or for a fixed term, identifying the main responsibilities of the employee in a clearly articulated job description, informing the employee on the processes and procedures involved in the review process and protecting the company’s intellectual property assets – ensures the employer sets the stage for a successful employment relationship.

Should my Employee be At-will or Fixed Term?

Employees can be hired as either an at-will or fixed-term employee. Unless otherwise specified in a written agreement, all employment in the State of California is “at will,” meaning either the employer or the employee can terminate the relationship at any time with or without cause. While at-will employment gives employees more flexibility in controlling how long they continue to work with a particular company, at-will employment also grants businesses with a greater control in terminating employees. Businesses can fire at-will employees at any time, with or without cause. (Obviously, this is limited to instances in which the business is not committing discrimination.) This is true because no contractual obligation exists between the business and its at-will employee.

Thinking of Partnering to Launch a Business? Draft a Partnership Agreement.

March 18, 2016 | Jaclyn Ford

While many well-known businesses are either corporations or limited liability companies, partnerships remain a common and savvy business entity selection. In fact, some of the biggest names in tech—Apple, Microsoft, and Google—started out as partnerships.

What is a Partnership?

Partnerships exist whenever there is a cooperative endeavor of two or more people, entities, or some combination thereof, to provide a product or service. The main characteristic of any partnership is that the partners share in the profits and losses of the business.

What to Include in your LLC’s Operating Agreement – California Startups

September 4, 2015 | Mark Figueiredo

When starting a new business, one of the most important decisions that entrepreneurs must make is choosing the type of business entity under which they will operate. Many new businesses form as limited liability companies, or LLCs, as they combine the limited liability offered by corporations with the flexibility and favorable tax treatment of partnerships. The document that governs how an LLC operates is known as its “operating agreement.” While an LLC’s operating agreement does not need to be filed with the Secretary of State, it is still required that every LLC have one and that the document clearly lays out the rights and responsibilities of the company’s members.

It is highly advisable for anyone in the process of forming an LLC to consult with an attorney to ensure their operating agreement accurately represents the intent of the parties it affects and it contains the necessary provisions. Below is some information about a few of the basic issues any LLC’s operating agreement should address.

The LLC’s Ownership Structure – One of the most important issues that should be addressed in an operating agreement is the ownership of the company. Ownership can be determined either by allocating percentages or by issuing “units,” which are similar to stocks issued by a corporation. In the absence of provisions to the contrary, California’s default LLC rules will apply, which may or may not reflect the intent of the people forming the LLC.