Showing posts from April, 2013

What is a California Corporation?

     A California corporation is a distinct legal entity separate and apart from its officers, directors and shareholders. As a result, a shareholder, officer or director is not the employer of those working for the corporation, nor are they considered the owner of the corporate property. As a separate legal entity, a corporation has the power to act in any way permitted by the laws that created it. A corporation can own and convey property. It can sue and be sued. A corporation can commit torts and crimes.      Although a corporation can sue or be sued in its name, with the exception of small claims court, it cannot appear in court and represent itself. Nor can it appear on its own behalf as defendant in a criminal proceeding. In general a corporation must be represented by a lawyer when it appears in a civil or criminal case. Even where a sole shareholder's interests are identical to those of the corporation, a non lawyer shareholder cannot intervene in the

Alter Ego Law In California

When you incorporate in California, your new corporation and its shareholders are suppose to be distinct and separate entities. A key principle of corporate law is that a shareholder of a corporation is not personally liable for obligations of the corporation beyond the extent of the shareholder's investment in the corporation. Limited liability serves an important public policy, encouraging investment by limiting risk. However, limited liability for shareholders is not absolute or automatic and can be defeated in instances when the corporation is deemed to be the alter ego of the shareholders, and the veil of the corporation is pierced. Piercing the Veil of California Corporations Courts apply what is referred to as the "alter ego" doctrine to determine whether the veil of a particular corporation should be pierced (i.e., whether the corporate identity should be disregarded and liability should be placed on the shareholders). The alter ego doctrine

Business Law Firm of Jacobs & Dodds - Commercial Collections

The business law firm of Jacobs & Dodds specializes in handling the collection needs of businesses seeking a commercial collection law firm with time proven debt collection methods that are cost effective and efficient. Using the latest technology in skip tracing and asset location, and backed by in-house attorneys with over 30 years of commercial collection experience, our firm is capable of handling claims from inception to post judgment.    The amount owed on each debt must exceed $50,000.   Call us today.  (949) 645-7300.   Jacobs & Dodds performs the following services for its Orange County business clients:   ** Advanced Skip Tracing and Asset Location   ** Accounts Receivable Collections   ** Commercial Account Collections   ** Deficiency Accounts    ** Retail Accounts Collections.   ** Commercial Unlawful Detainer Judgment Collections.   Did you know, that the older a delinquent commercial account becomes, the more difficult it is to coll

California Breach of Contract Law Simplified

The basic rule is that parties to a contract must perform as specified in the contract unless (1) the parties agree to a change in the contract's terms, or (2) the actions of the party who deviates from the terms of the contract are implicitly accepted ("ratified") by the action or non-action of the other party. If there is no acceptance of deviation from the terms of the contract, and the deviation is serious enough to make any real difference in the intended result of the contract, then the deviating party is said to have breached the contract. Of course if one party fails more or less entirely to perform the contract, or totally prevents the performance of the contract by the other party, the situation is straightforward. The situation becomes more complex where the argument is over such things as the quality of materials, the timing of work, or the quality of the work performed when the contract involves services.   Breach of contract leaves the nonper

Buying or Selling a Business

Buying or selling a business is a big decision. If you are contemplating buying or selling a business consider retaining the services of a qualified business broker. Keep in mind, however, that business brokers are not regulated the same way that real estate agents, attorneys, medical doctors and accountants are regulated. There is no state agency in California that licenses business brokers. Many business brokers have a background only in real estate sales. Make sure your business broker has a strong background in finance, marketing and business valuating. A business attorney is essential if you are buying or selling a business. If you are buying a business, a business attorney can make sure the business you are buying has complied with all local, county and state laws. The attorney can make sure the business location is zoned properly for the business you are buying. The attorney can make sure that the purchase agreement is properly drafted, and that it contains a non-compete c