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2 Answers | Asked in Business Law, Contracts and Civil Litigation for California on
Q: How to fix annuity payments sent to wrong company?

I have a situation with my annuity payments from a structured settlement. Initially, I took out a loan on a portion of my structured settlement with a company whose license was later revoked. My annuity payments are now being sent to a different company, with which I have no contract, because my... View More

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answered on Oct 22, 2025

In California, annuity payments from a structured settlement can’t be redirected to a third party unless a judge has approved the transfer in a final court order under the Structured Settlement Protection Act. If your payments were rerouted based only on a “fax” or similar instruction and... View More

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3 Answers | Asked in Business Formation, Contracts, Intellectual Property and Business Law for California on
Q: Created a unique website concept, considering LLC and NDA for investor pitches.

I have created a unique website similar to YouTube but with a different concept. I want to launch it to the public and pitch it to investors, but I'm concerned about protecting my idea from being stolen, especially by major competitors like YouTube or Facebook. I am considering forming an LLC... View More

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answered on Oct 7, 2025

Your idea by itself isn’t protectable. What you can protect are (1) the implementation (code, architecture, algorithms) through copyright, trade secrets, and possibly patents; (2) the brand through trademarks; and (3) your disclosures through well-drafted confidentiality agreements. An LLC helps... View More

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3 Answers | Asked in Business Formation, Business Law, Banking and Contracts for California on
Q: Can I be removed from my LLC and have banking account actions taken without consent?

I formed an LLC in California with a partner. Three months after starting the business, I discovered that I was removed from the LLC without my knowledge or signing any documents, and I did not receive any formal communication regarding this removal. Additionally, my partner closed our business... View More

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answered on Oct 6, 2025

In California, a co-owner generally cannot unilaterally “remove” another member from an LLC or strip that person’s ownership without the member’s consent or a valid legal basis in the operating agreement or statute, and certainly not without notice. Unilaterally closing the LLC’s bank... View More

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2 Answers | Asked in Business Law, Business Formation and Contracts for California on
Q: What actions can LLC members take if the manager won't provide financial reports in CA?

As members of an LLC in California, we requested financial reports from the LLC manager three months ago, following up multiple times via text with no reply. The operating agreement states members have the right to view these reports, and other members share the same issue. What formal or legal... View More

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answered on Sep 29, 2025

Members have statutory inspection and information rights that a manager can’t waive or ignore. Put a formal written demand on the manager and the LLC (not just a text), cite the Corporations Code, give a short deadline, and request a date to inspect and copy the required records. If they still... View More

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2 Answers | Asked in Business Law and Contracts for California on
Q: Should I serve both agents listed for an LLC to avoid a Motion to Quash Service?

For a defendant LLC, if the Secretary of State website lists one agent and the Operating Agreement lists another, should I serve both agents to avoid a Motion to Quash Service? The agents in question are the Company President and the LLC's attorney. There haven't been previous issues with... View More

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answered on Sep 15, 2025

No, you don’t need to (and generally shouldn’t) shotgun serve “both agents.” In California, the safe, clean way to serve an LLC is to personally serve the registered agent listed with the Secretary of State at the address on file. That’s the official appointment for service. An... View More

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2 Answers | Asked in Business Law and Contracts for California on
Q: Can my partner sell their half of our at-will partnership without my consent in CA?

I’m in a general at-will partnership in California with no written contract. My partner moved out of town over a year ago and we've only had very basic verbal agreements about our 50/50 partnership. They are considering selling their half and have offered me a buyout but are asking for way... View More

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answered on Sep 15, 2025

Your partner can sell his/her economic rights, but they can’t make you take on a new partner without your consent. In California’s default partnership rules (which apply when there’s no written agreement), a partner may transfer their “transferable interest,” basically their share of... View More

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2 Answers | Asked in Business Law, Contracts and Real Estate Law for California on
Q: Does accepting Airbnb rental income imply consent from co-owner?

I am one of four family members who own a house, with ownership shares of 40%, 20%, 20%, and 20%. Three of us refurbished the house at our own expense and started renting it out via Airbnb, with rent distributed according to ownership shares. The fourth heir, holding a 20% share, has opposed all... View More

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answered on Sep 9, 2025

The short answer is probably not, at least not by itself. Accepting a pro‑rata share of rent is what a non‑managing co‑owner is entitled to if other co‑owners decide to rent the place out. A co‑owner who collects rent has to “account” to the others. Taking that check can be viewed... View More

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2 Answers | Asked in Business Law, Contracts and Real Estate Law for California on
Q: How can I exit a home co-ownership with repair disagreements?

I co-own a vacant fixer-upper home with my partner, and we're in disagreement over how to handle repairs and the future of the property. She wants to make repairs and rent it out without my approval, and I'm refusing to spend money on it. We have no signed agreement regarding these... View More

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answered on Jun 25, 2025

If you wish to exit quickly and cannot reach an agreement, filing a partition action is your most direct legal option. A partition action compels either the physical division of the property or (more commonly) its sale, with proceeds divided according to ownership interests (CCP §§ 872.010 –... View More

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4 Answers | Asked in Business Law, Contracts and Employment Law for California on
Q: Is it legal for a board member to use employees for another company?

I am part of a company in California where one of the board members has been directing our employees to work temporarily for another company he is involved in. This has been happening for at least 6 months, and we disagree with this practice as there are no formal agreements and the companies are... View More

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answered on Jun 12, 2025

Generally speaking, the situation you've described is not allowed. Here are the main issues I see:

1. Director’s Breach of Duty: Directors must act in the best interests of their company and its shareholders. Using the company's employees for another business without proper...
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2 Answers | Asked in Business Law and Contracts for California on
Q: Is the Manager's conduct lawful in altering contact without notice in a CA LLC?

I am a member of a California LLC with 55 members, managed by another LLC. Our operating agreement specifies a contact for the Manager, but this was changed without notice or consent. Now, I can only communicate through an Investor Relations team that neither provides Manager access nor answers my... View More

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answered on May 16, 2025

The manager's conduct in changing the contact method without notice or consent may not be lawful under California LLC laws and the operating agreement, depending on the specific terms of the operating agreement and the manager's fiduciary duties. California law provides that the operating... View More

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2 Answers | Asked in Business Law, Collections and Contracts for California on
Q: Legal justification for consistent attorney fees in debt collections

How does a company justify attorneys’ fees when collecting identical debts from numerous customers? The company's in-house attorneys are enforcing a contract with attorney fees by suing me, and they file nearly identical lawsuits against other customers weekly, using a longstanding template.... View More

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answered on Apr 16, 2025

When a contract includes an attorneys’ fees clause, it typically allows the prevailing party to recover “reasonable” attorneys’ fees incurred in enforcing the agreement. Even if the legal work is repetitive or done using templates, the key issue is whether the fees claimed are reasonable... View More

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2 Answers | Asked in Contracts and Business Law for California on
Q: How to enforce a terminated contract's ownership terms for Roblox development in California?

I have a contract issue related to Roblox development. We made a contract where it was clearly stated that any work put into Bloxstar Corporation would be owned by us. However, a former collaborator, who signed the contract, has left and is now claiming that the UI work they did is theirs. The... View More

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answered on Apr 10, 2025

First, review the contract itself. You mentioned it clearly states that any work put into Bloxstar Corporation is owned by the company. Check for specific clauses like an “assignment of rights” or “work-for-hire” provision. These typically mean that any contributions (like UI designs) made... View More

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2 Answers | Asked in Business Law and Tax Law for California on
Q: Will LLC members be personally liable for deferred CDTFA sales tax if business shuts down?

I have a retail business in California under an LLC with four members. We deferred sales tax payments from previous quarters due to the business not generating any revenue and have a payment plan set up with the CDTFA. If we have to shut down the business, will the sales tax balance affect the... View More

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answered on Apr 9, 2025

The sales tax liability is usually considered a debt of the LLC, not the individual members, as long as the LLC has been properly maintained (e.g., keeping business and personal finances separate, filing required paperwork, etc.) However, there are situations where the CDTFA could attempt to hold... View More

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2 Answers | Asked in Business Formation and Business Law for California on
Q: Do I need to amend my LLC agreement and notify California after manager change?

I am currently considering a change in the management of my LLC (partnership) agreement where the manager changes from my mom, who is a partner, to myself. The LLC agreement has not been updated since it was originally drafted, but it does contain clauses specifying procedures for notifying changes... View More

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answered on Apr 2, 2025

Regarding the LLC agreement amendment, I would advise to review the agreement and follow the procedures outlined there for management changes. Even if an amendment isn’t required, it’s good practice to document the decision in writing (e.g., through a resolution or updated management... View More

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2 Answers | Asked in Business Law for California on
Q: Is it legal to offer employment to competitors' employees via social media?

Is it legal for my car shipping brokerage to send offers of employment to individuals working for competitors via social media, considering that there are no existing employment agreements or non-compete clauses with these employees?

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answered on Mar 31, 2025

Generally speaking—yes, it is legal. However, one potential legal risk to consider is a claim of “tortious interference with contractual relations” or “intentional interference with prospective economic advantage.” For this to apply, the competitor would need to prove that your actions... View More

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2 Answers | Asked in Business Law, Tax Law and White Collar Crime for California on
Q: Suspect financial fraud by accountant and ex-wife in California business taxes. Need next steps.

I've been using an accountant recommended by my ex-wife since 2014 to handle the taxes of my small business, a C Corp/Electrical Contractor. After recently filing an extension for 2023, she suddenly informed me she's too busy and I should find another accountant. I suspect financial... View More

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answered on Mar 22, 2025

First, I would suggest gathering all the documentation you have—tax returns, bank statements, invoices, payroll records, and anything else tied to your Corp’s finances since 2014. Make digital backups and store them somewhere safe.

Next, find a new independent accountant. A forensic...
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2 Answers | Asked in Business Formation and Business Law for California on
Q: As a mobile notary in California, do I need to form an LLC or business entity?

I live in California and am becoming a mobile notary and plan to expand into loan signing services. I'm wondering if I need to form an LLC or another type of business entity for my notary services or if there's anything specific to consider for liability or business structure when... View More

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answered on Mar 21, 2025

You can legally operate as a mobile notary and loan signing agent as a sole proprietor without forming a business entity. However, forming an LLC could offer significant advantages, particularly for liability protection and professional credibility, which are especially relevant given your plans to... View More

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2 Answers | Asked in Business Formation and Business Law for California on
Q: Naming requirements for a professional corporation in California as a licensed counselor.

I am a licensed professional clinical counselor in California and I'm thinking of opening a professional corporation solely under my license. I plan to supervise registered counselors eventually. Are there specific words or terms that must be included in the company name, similar to how LMFTs... View More

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answered on Mar 21, 2025

There are indeed specific naming requirements you must follow under state law. The California Business and Professions Code, which governs professional clinical counselor corporations, mandates that the name of your corporation reflects its professional nature and purpose.

Specifically,...
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2 Answers | Asked in Business Formation, Business Law and Gov & Administrative Law for California on
Q: How to obtain a business license for direct cremation in Riverside County, CA?

I have already registered my business and I'm looking to obtain a business license for a direct cremation entity in Riverside County, CA. I need guidance on which agencies or departments to approach for the license, information on complying with local health and safety regulations, and help... View More

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answered on Mar 19, 2025

To obtain a business license for a direct cremation entity in Riverside County, California, you must apply to the Cemetery and Funeral Bureau, which oversees crematory licenses. Follow the link to submit your application online: https://cfb.ca.gov/licensee/app.shtml

Given crematories...
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3 Answers | Asked in Business Law, Employment Law, Intellectual Property and Contracts for California on
Q: How can I reclaim my intellectual property from a Corporation using it for unjust enrichment?

I am a co-founder of a California C Corporation startup, and I discovered that the company tricked me into working for free without any signed documents or issuance of shares. My business attorney informed me that I should have been paid under California law. The company is ignoring multiple... View More

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answered on Mar 13, 2025

Based on the circumstances described, your situation touches on both employment law and intellectual property (IP) principles.

California law requires employers to pay wages for work performed. If you were tricked into working without pay, you may have a claim under the California Labor...
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