Corporate Records Management in Orange County, California

It is common for people to quickly say “no” when they are asked whether they want a receipt or not. But businesspeople should always ask for a receipt, regardless of what they are purchasing, especially if it is related to their business. Corporate lawyers in Orange County, California strongly advise good corporate record management to avoid problems, particularly with the IRS. Diligently collecting all receipts is part of good corporate record keeping. Learn a few tips about receipts and corporate record management by reading through this article.

1. All Receipts for Business Related Expenses Should Be Kept

This is very, very important. When tax time comes, the IRS requires that all small businesses in California have a receipt to support certain expenses made by your business. It does not matter if you are paying cash, using your credit card, or issuing a check; if you are making a purchase that is related to your business, it is imperative that you ask for a receipt.

2. Label All Your Receipts

There are lots of small businesses in Orange County, California that issue receipts with incomplete details. The only information you’ll find in many of these receipts is the amount that you paid and the date that you made the purchase. These details are not enough, and are not very helpful when you are trying to manage all of your corporate records properly. It is very important that you label your receipt with the details, such as the exact item you purchased, and for what purpose you bought it. Not only will you avoid problems when auditing comes, but you will also be able to keep track of your expenses.

3. Have All Your Receipts Scanned

There are times when the IRS might ask for documentation, and audit you up to 6 years back. It would be an issue if the receipts you’d collected from before had already faded by then. You can protect your business from any unnecessary legal problems if you have your receipts scanned. You can further back up your receipts by not only saving the file in your computer, but also by keeping a copy in a flash drive. Another cool way to have a digital copy of your receipt is to take a picture of it through your smartphone.

4. Do Not Depend on Credit Card Statements and Cancelled Checks

Credit card statements and cancelled checks are important for proper corporate record management in CA, but these are insufficient if you do not have the receipts. The IRS auditor will want to see the details of your expenses, and without receipts, you cannot adequately prove your statements.

5. Avoid Using Cash For Business Expenses

Many corporate lawyers in CA advice using cash for business expenses. Expenses made using cash are difficult to track, because cash is very easy to spend and almost always tedious to reconcile with receipts. It is more efficient to use debit cards and credit cards. Back them up by never forgetting to ask for a receipt.

Small Business Tips

Running a business is not as easy as many people may think. Having to deal with corporate records and other legal problems can be an additional burden. Make your business life easier by having a corporate attorney in Orange County, CA assist you with your company. There are various business attorneys in Orange County that are very competent, and readily able to help you in the legal aspects of your business.

Corporation Name: Tips On How To Choose a Name for your Business

Are you planning to put up a business in Orange County? Choosing a name for your company in Orange County, California is one of the most important things to do when starting a business. You must choose the company name carefully, because it is so tedious to change it later on. Moreover, the name you choose might give you an extra edge on your competitors.

The following are tips on choosing a name for your company:

1. A Company Name Must Stand Out

All businesses should strive to rise above their competitors. A common mistake made by many businesses in California when naming their company is making it sound like the names of other companies. Usually, this is because they are worried whether their business will be taken seriously by customers or not.

For a business to rise above its competitors, it should have a name that stands out. When you choose a business name, use the names of your competitors as examples of what to avoid.

2. A Company Name Should Not Have Generic Surnames

Some businesses use their owner’s full name for the corporation name. If so, make sure the family name is not generic. Only those who have a truly memorable or unique family name can get away with this. Generic surnames will not make you stand out from your competitors.

3. Do Not Use Descriptive Names for your Corporation Name

In the past, many companies used business names that were descriptive of their brand. Even corporate attorneys in California used to advice this. Although it was good advice at that time, it is not as applicable today. In fact, it may hurt your company more than it can help.

There is no need to have descriptive names these days, because there are many ways customers can figure out what you do. Customers can search you on Google, scan your QR code, or look your company up in the local phone book.

It can be a burden to think of a name that will describe everything you do at once. There are other things you can do to explain the nature of your business to your customers, particularly through your website and your business card.

4. Avoid Using Acronyms for your Business Name

These days, many corporate lawyers in CA would advise business owners to do away with acronyms for a business name. The fact it, there are already many businesses in the world that use acronyms. Stand out by avoiding them.

5. Do Not Use Faux Latin for your Company Name

A lot of people are fascinated by Latin words and that is why businesspeople like to use Latin-like words to name their corporation in California. Latin-like names (e.g. Accordis, Nutiva, Valero, Abertis and Veriton) are easy to trademark, because you can always make one up that no one has used before. But the problem is that so many companies have leaned toward using faux Latin that if you use this for naming your company, you still won’t be able to stand out.

Seek The Help of a Competent Corporate Attorney in California

Choosing a business name for your company can be tedious. You can make it easier for you by seeking the help of a corporate lawyer in Orange Company in California.

The Difference Between an S Corporation & C Corporation

S Corporations and C corporations are two of the most popular business entities when a company decides to incorporate. Once you have incorporated your business, you might want to be an S corp or a C corp. If you are choosing between the two, tax concerns are usually the major basis for making a decision.

Just like a partnership business structure, S Corporations do not pay any federal income taxes. The profits and losses of an S corp are passed through to the stockholders. These people will then report the income and losses on their personal tax return. This process is called single taxation.

C corporations, however, face double taxation. Double taxation means that the C corp pays federal income tax. All dividends paid to the stockholders are also taxed.

It is always best to have a corporate lawyer in California to assist you in deciding what business entity is most suited to your company.

Learn more of the differences between S Corps and C Corps by reading through this article:

Advantages of Being an S Corporation

A major advantage of being an S Corp is that income and losses are passed through to the shareholders of the company, and taxes are paid only once. Thus, double taxation is eliminated. It is important to check the laws and regulations of your state regarding this, because some states do not recognize S Corps and will tax the company just like a regular C corp. There are states that charge S Corps as state tax, even if the company will not have to pay federal income tax.

If your business becomes an S Corp, you as the owner are protected from liability. With S Corps, the personal assets of the owner and the shareholders are separate from the company’s assets.

Accounting is also easier with S corps, because you can simply use the cash method of accounting. It’s perfectly alright if you do not have any inventory. Moreover, with S corps you will have more room for investors. In fact, S corps can have up to 100 stockholders!

Disadvantages of Being an S Corporation

S Corps , just like other business entities, are required to file a number of official and federal documents, including the Articles of Incorporation. The company must also hold regular meeting with their stockholders, and the minutes of these meeting be filed. There are also a number of government fees that have to be met regularly.

There are also shareholder restrictions with S corps. In a C corp, shareholders are taxed only when they receive their dividends. But with S corps, the shareholders are taxed for any income that the company has, even if they have not received any portion of that income. Another restriction is that S corps shareholders are only allowed to issue one class of stack. Many investors can get discouraged by this.

Again, in order to know more about what you’re getting into when it comes to choosing a business entity for your company, it is always best to have a corporate attorney in Orange County, California to assist you.

You Need a Business Attorney to Handle Common Legal Issues in California

All businesses in California will face legal issues; if not now, then eventually. This is why all businesses, whether big or small, should have a corporate lawyer. Corporate lawyers make sure that your business is protected from various kinds of legal troubles. Here are a few of the most common legal issues faced by businesses in Orange County, California.

1. Complaining & Unsatisfied Customers

Dissatisfied customers is one of the most common legal issues faced by businesses in California, and this can be a huge problem, because they can file lawsuits against your company. What’s worse is that most complaining customers gather consumer groups and make a single issue larger than it is. They will sue you over almost anything, from incompetent service to faulty products. Moreover, dissatisfied customers tarnish your company’s reputation, especially if they approach media outlets for their complaints.

You need to have a corporate attorney to handle issues with unsatisfied customers. You are already busy running a company and you cannot overburden yourself by handling legal issues. Have a business attorney in California deal with issues like these, while you focus on running your business.

Wrongfully Terminated Employees

The law provides that you cannot let go of an employee without any final termination forms. Before you terminate incompetent employees, you need to make sure that he signs the necessary documents carefully drafted by your corporate lawyer in Orange County. Your corporate lawyer will make sure that the terms of his dismissal are communicated clearly.

Patent & Copyright Lawsuits

The business world is a very competitive environment. Sometimes it gets too competitive, because other companies will do anything they can to put down their competition. They will look for loop holes in your business and when you do make a mistake, they are quick to file a lawsuit, which will destroy your reputation and ultimately to shut you down. One of the common lawsuits that companies are quick to file are those regarding copyright and patent.

Besides having a business attorney in CA protect you if lawsuits do arise, you also need to make sure that your product development team researches the patents and copyrights of your products thoroughly, so that you can avoid unnecessary problems with your competitors.

The Need for A Corporate Lawyer

All companies, whether big or small, need to have a corporate attorney in California contracted. Not only will they be able to help you when legal issues arise, they also serve a lot of purpose in the company. Corporate lawyers in CA help in preparing contracts, keeping corporate records, and they assist in various legal aspects of a business. Having a corporate attorney in OC, CA contracted will protect your company form potential legal problems in the future.

 

The Skills Required of a Competent Corporate Lawyer in California

Companies and small businesses in California should have a business attorney contracted. A corporate lawyer is an integral part of the success of any business. As you focus on running your business, the corporate attorney handles the legal aspects of the company.

Competent corporate attorneys in Orange County, CA make sure that future legal problems in the business can be avoided. They make sure that all contracts, documents and legal variables are well-made and taken cared of.

Just like doctors, different corporate lawyers in California also have special skills. To make sure you have the best corporate lawyer working for you, here are a few of the most important sets of skills that an attorney should have if you hire him or her:

BUSINESS ORGANIZATIONS

When you put up a business, you need to define its structure. Have a corporate attorney who can help you decide what type of business structure you want to have for your company. Examples of common business structures include a corporation, a limited liability company (LCC), and a limited partnership.

CONTRACTS

A good business lawyer is one who understands your business and is able to prepare standard form contracts that you will need. Contracts are always required when making agreements or deals with customers, clients and suppliers. A good corporate lawyer will also assist you in responding to contracts that other people will want you to sign.

TAXES AND LICENCES

Besides a lawyer, your business will need an accountant. The accountant will be able to help the company with many things, including preparing and filing business tax returns yearly. Before an accountant can do this, your corporate attorney should have already have registered your company for federal and state tax identification numbers. Your business lawyer should also be knowledgeable of the tax implications in the various business transactions that you might engage in.

REAL ESTATE

If you will be renting or leading a commercial space for your business, you will need a corporate attorney in Orange County, California who can add a standard tenant’s addendum to the lease contract. Lease contracts are usually drafted to benefit the owner alone, but with a good corporate attorney, you can make sure that the lease document has details and provisions that will benefit you as well.

INTELLECTUAL PROPERTY

The intellectual properties of a business are variables that need to be protected at all costs. These maintain the identity of a brand or a company. It is also important for a business attorney in California to register your products and services for trademark and copyright protection. There are specific corporate attorneys who specialize in the ins and outs of intellectual properties. Most of the time, if a lawyer claims to specialize in small business, that lawyer should also have a close working relationship with lawyers who specialize in intellectual properties.

These are only a few of the many important skills that a competent corporate lawyer in OC, California should have. Before hiring or having a lawyer contracted, evaluate them for these basic skills.

Searching for the Best Corporate Attorney in California

Many businesspeople find it very difficult to find the best corporate attorney for their company. Since it is very helpful for the company to have a corporate lawyer, one must go through it no matter how difficult. Here are a few tips on how to find the most competent lawyer for your business.

Rid Your Self of Prejudice Against Lawyers

Lawyers are known to be self-interested. They are also notorious for charging too much. The cliché, “lawyers are liars” makes attorneys look bad to many people. Because of these preconceived thoughts regarding lawyers, many businesspeople are mistrustful of the lawyers that they hire. The truth is, these negative notions about lawyers are not applicable to all. Most corporate lawyers in California are very dedicated to their work. If you want a competent corporate attorney, you must let go of your negative thoughts about lawyers and build a relationship with them through a positive mindset.

The Lawyer You Hire Should Share the Same Vision With You & Your Business

Each lawyer has a different field of expertise. Some lawyers specialize in corporate litigation, others in fashion law, sports law, or intellectual property matters. The corporate attorney in Orange County, CA that you choose should be someone who can identify  themselves with the vision you have for your business. Therefore, before hiring a lawyer, research his background first. Check the lawyer’s areas of practice in the past, and the business niches that he used to work in.

Thoroughly Express & Explain What You Need From the Corporate Lawyer

It is imperative that you share with the attorney you are going to hire the nature of your business and what specific help you will be needing from them. This should happen at the initial consultation. Many corporate lawyers in Orange County will do an initial consultation without charge. If you are not sure of what help you will need from them, tell them.

Of course, as much as you are able to express your side freely, you should also allow the corporate attorney to do his job as well, by having an open ear to listen to his expertise. Be willing to trust your corporate counsel when he assists you in legal decision making.

Establish Rates Clearly

The services of some corporate lawyers are more expensive than others. Some have a fixed hourly rates, too. When it comes to the value of a corporate attorney in Orange County, CA, businesspeople should remember that you are not only paying for their service, but also for the assurance that you will be spared from a lot of legal problems later on. The assurance that your stresses in running a company will be minimized is priceless. Nevertheless, it remains important to establish clearly the rates in the beginning of the lawyer-client relationship.

Corporate Lawyers in California Assist Businesses in Choosing Their Form of Business Entity

Business owners need to decide what form of business entity they want their company to be. This process of choosing can be a difficult task, which is why it is important to have a corporate attorney in Orange County, CA to help them pick the right one. Learn about the most common forms of business entities by reading through this article.

1. General Partnership

A general partnership or a joint venture is the least expensive type of business entity to form, not to mention the easiest. This is because in a general partnership, no documentations and other filings need to be done with any agency. The only imperative requirement is that a signed written agreement be made between the involved people so that each one’s roles and responsibilities are defined accordingly. Moreover, since there is no filing or documentation with an agency required, the individual partners can choose to remain anonymous and keep their privacy.

One disadvantage of this kind of business entity is that all partners are jointly responsible for any obligation, debt and liability that one partner incurs. It’s an one for all and all for one accountability scenario.

2. Corporation

Unlike a general partnership, a corporation requires articles of incorporation filed with the secretary of state. If there is no close corporation formed, a centralized management is usually chosen in a corporation where there are directors and officers elected annually. All profits and losses are indiscriminately allocated to each shareholder. Moreover, corporations (except for Subchapter S corporations), are subject to double taxation (first during the corporate level and second when profits are distributed among stockholders). Of course, the company itself is taxed and not the stockholders because the company is viewed by the government as an individual entity apart from its owners.

What makes a lot of companies decide to incorporate is the fact that a corporation provides limited liability to its business owners. Basically, if there is no fraud or the like, then owners have absolutely no liability for any of the company’s obligations.

3. Limited Partnership

A limited partnership is similar to a general partnership where there are at least 2 individuals or entities join to form the company. The difference is that in a limited partnership, one partner has full control of the company while the others only have limited control. This also means that that one partner has unlimited liability for partnership obligation while the other partners do not.

One of the disadvantages of this setup is that it is more complicated compared to the other forms of business entities. This is why, although a limited partnership does not require a written agreement, most limited partners request one made so that the partner with unlimited control will be made accountable to operate the company according to the agreement made between them.

4. Limited Liability Company (LLC)

The setup of a limited liability company is like a cross of a general partnership and a corporation. The LCC has pass through taxation just like a general partnership and has a centralized management system just like a corporation.

There is a lot of flexibility in the structure of an LLC. The business owners of the company can have an agreement on how the company will be run and managed. They may decide to have managers just like how a corporation has board of directors or they may choose to have the members manage just like how a general partnership is managed by the partners.

Seek the Assistance of a Corporate Attorney in Orange County, CA

It is important that a business owner chooses the appropriate structure for his business. To know which business entity is best suited for your company, it is best to seek the counsel of a competent corporate lawyer in Orange County, California. Have one contracted at your convenience.