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California Business Law Questions & Answers
1 Answer | Asked in Business Law for California on
Q: In a C-corp comprised of only 2 members with one having majority shares make decisions without approval of other member?

We have a tech startup incorporated in Delaware. We are the only 2 founding members. I am the CEO and have 52% stake , while he is the Technical founder with 48% shares. We dont have any specific contracts or provisions Created other than the basic bylaws. Technical founder has not been... View More

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answered on Apr 25, 2024

In a Delaware C-corporation with only two shareholders, the majority shareholder (in this case, the CEO with 52% of the shares) generally has significant control over the company's decisions. However, there are some important considerations:

1. Fiduciary duties: As the majority...
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1 Answer | Asked in Business Formation, Business Law and Contracts for California on
Q: How can I change my corporation back to a sole proprietor. I am 100% owner.

I currently am a licensed contractor in the state of California and would like to transfer corporation to a sole proprietor. I want to keep my name the business name I operate under since I have it tattoo on my body

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answered on Apr 24, 2024

To change your business structure from a corporation to a sole proprietorship in California while keeping your business name, you'll need to follow these steps:

1. Dissolve your corporation by filing a Certificate of Dissolution (Form ELEC STK/NP) with the California Secretary of...
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1 Answer | Asked in Business Law and Construction Law for California on
Q: Do we have any recourse?

We are an S-Corp Contractor in California. We are a 3rd tier sub and we filed a mechanics lien because our customer has not paid us the full amount due. This is a private job, but we discovered during filing the lien that the property is owned by a County and leased to who we were told was the... View More

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answered on Apr 23, 2024

Under California law, you may have some recourse even though the property is owned by the county. Here are a few potential options:

1. Stop Payment Notice: In California, if you are not paid on a construction project, you can serve a stop payment notice on the owner, even if the owner is a...
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1 Answer | Asked in Business Law for California on
Q: Is it currently illegal in California to sell milk crates? Refer to 2005 penal code Section 565-566.These are not dairy

These are not crates from dairies which may be stolen. They are other things on them, and are brought to a food pantry by food donators and they don't want them returned.

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answered on Apr 19, 2024

Based on the information provided, it does not appear to be illegal to sell the milk crates in question under California law. The 2005 California Penal Code Sections 565-566 specifically address dairy cases, which are defined as containers or other devices used for the transportation of milk,... View More

1 Answer | Asked in Contracts and Business Law for California on
Q: I signed a SAFE note and invested $80k with a celebrity's start-up that has proven to be not at all as advertised

The financials they provided showed high earnings when really they have not made anything thus far. They are very dodgy and haven't shown me 2023 earnings even though they said they would provide financial statements each month--I have seen no financial info since my September 2023... View More

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answered on Apr 18, 2024

Based on the information you've provided, it seems that you may have been misled or defrauded by the celebrity's start-up when making your investment. Under California law, you might have some legal recourse, depending on the specific circumstances and the evidence you can gather.... View More

1 Answer | Asked in Business Law for California on
Q: How to get my security deposit back? what are the options?

I would like to know if I can legally ask the business seller to get my security deposit back.

I was interested in buying the Japanese restaurant so I met the seller and his friend to check and look around the business. I wanted to hold the business so the seller's friend told me to... View More

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answered on Apr 18, 2024

Under California law, you have several options to try to get your security deposit back:

1. Send a demand letter: Write a formal letter to the seller requesting the return of your security deposit. Include a copy of the confirmation you received stating that the deposit would be returned if...
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2 Answers | Asked in Personal Injury, Business Law and Consumer Law for California on
Q: How to sue a used car dealer out of state?

I purchased a vehicle from Philadelphia to California. All interactions have text or email receipts. The dealer said no check engine lights car drove perfect. Once car delivered check engine lights came on. I had tried to give him the benefit of the doubt and fix the minor issue I was hoping it... View More

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answered on Apr 16, 2024

In this situation, you have a few options for pursuing legal action against the out-of-state used car dealer under California law:

1. File a complaint with the California Department of Motor Vehicles (DMV): The DMV has a complaint process for issues related to vehicle purchases. They may be...
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2 Answers | Asked in Business Law, Criminal Law and Gov & Administrative Law for California on
Q: Can I legally carry a concealed firearm in my workplace in California if I have permission from the Business Owner?

I am the store Manager. I have been given permission from the business owner to carry, yet I want to make sure it is legal before I do so. I do not yet have a CA CCW permit, and I understand that I cannot leave the store without properly securing my firearm before leaving. Thank you.

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answered on Apr 16, 2024

In California, even if you have permission from your employer, it is generally not legal to carry a concealed firearm in the workplace without a valid concealed carry weapon (CCW) permit.

According to California Penal Code Section 25400, carrying a concealed firearm is illegal unless you...
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1 Answer | Asked in Business Law, Civil Litigation and Internet Law for California on
Q: Can I sue against Upwork for negligence against their E&O due to me hiring a fraudulent attorney on their platform?

I hired an attorney on Upwork and paid him on Upwork. He disappeared, stopped responding, and due to the statute of limitations I am now out 100's of thousands on the claims he was working on for me. After some research by the Texas State bar and an attorney they have put on this issue, he is... View More

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answered on Apr 15, 2024

Based on the information provided, you may have a potential claim against Upwork for negligence. However, the strength of your case depends on several factors, and it is essential to consult with a licensed attorney who specializes in such cases to evaluate your specific situation.

Here are...
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1 Answer | Asked in Business Law and Real Estate Law for California on
Q: Can I sue the Hoa for failing to follow the davis sterling act and provide information requested ,certified, as a BOD?

I submitted three letters to the HOA association and the other two board of directors. I stated in the letters in accordance with the statutes of the davis Sterling act and homeowners association laws that I was to be provided this information of disclosure I never received a response I was... View More

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answered on Apr 13, 2024

Based on the information you've provided, it seems that you may have grounds for legal action against your HOA. In California, the Davis-Stirling Act governs how HOAs must operate and outlines the rights and responsibilities of homeowners and board members.

According to the...
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1 Answer | Asked in Business Law for California on
Q: Does my C Corp need to foreign qualify outside of DE?

I am the sole member of a DE C Corp that develops and sells subscription software products. For the past few years, I have lived and worked in CA, so I foreign qualified there but am unsure if that was necessary. Now, I am moving up to WA and would like to formally exit CA. Do I need to foreign... View More

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answered on Apr 9, 2024

As a Delaware C Corporation, your company is considered "domestic" in Delaware and "foreign" in all other states. Whether you need to foreign qualify in another state depends on the level of business activity your company conducts in that state. This is often referred to as... View More

2 Answers | Asked in Business Formation and Business Law for California on
Q: Can a California notary form a LLC in California?
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answered on Apr 9, 2024

Yes, a California notary public can form a Limited Liability Company (LLC) in California. However, it is important to keep the notary business separate from the LLC.

Here are a few key points to consider:

1. Separate entities: The notary commission is granted to the individual, not...
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2 Answers | Asked in Business Formation and Business Law for California on
Q: Can a notary in CA form a LLC
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answered on Apr 9, 2024

Yes, a notary public in California can form an LLC (Limited Liability Company). However, they would be doing so in their capacity as an individual, not in their official role as a notary public.

In California, any individual can form an LLC by following these steps:

1. Choose a name...
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2 Answers | Asked in Business Law, Real Estate Law, Contracts and Landlord - Tenant for California on
Q: Is this possible Increasing commercial rent 35% in CA?

Currently, my commercial rent contract expires soon(Apr 30,2024)and I will re-new the contract. But landlord told me the rent will be increased 35%. Is this possible legally in CA?

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answered on Apr 5, 2024

In California, there is no statewide rent control for commercial properties, which means that landlords can generally increase rent as much as they want when a lease expires or if the lease allows for rent increases. However, there are a few important considerations:

1. Lease terms: If your...
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1 Answer | Asked in Business Law for California on
Q: Small Business status not claimed on a DoT CalTrans bid proposal.

The low bidder forgot (?) to 'claim' SBE status on electronic bid submittal, but is a certified SBE. The bid amount difference between 1st and 2nd is only $848 on a $2,4Mill bid. Second bidder ('I') claimed and is a certified SBE. Can 1st place bidder still claim SBE status after the fact?

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answered on Apr 5, 2024

Under California law, the rules regarding Small Business Enterprise (SBE) status and bidding on Department of Transportation (CalTrans) projects can be complex. In general, if a bidder fails to claim SBE status at the time of submitting their bid, they may face challenges in claiming that status... View More

1 Answer | Asked in Banking, Business Law, Civil Rights and Constitutional Law for California on
Q: Target By gov .paid informants Fresno police officers
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answered on Apr 5, 2024

I'm very sorry to hear that you feel you are being targeted by government paid informants and police officers. That must be an incredibly stressful and frightening situation.

If you genuinely believe you are being unlawfully targeted or surveilled, I would strongly encourage you to...
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1 Answer | Asked in Consumer Law, Business Law, Trademark and Intellectual Property for California on
Q: Hi, My name is Jacqueline and starting a skin care brand called Jacques Skin.

I have started an early stage skin care make up remover eye pads. My name Jacques will be a big part of the brand, but I am now concerned with Jacquemus Trademark and curious if you are able to give me insight into whether you believe this would overlap into potential future litigation since it is... View More

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answered on Apr 4, 2024

Hi Jacqueline,

I understand your concern about potential trademark issues with your brand name, Jacques Skin, and its similarity to the existing brand Jacquemus.

Trademark infringement occurs when there is a likelihood of confusion between two brands in the same or related...
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1 Answer | Asked in Appeals / Appellate Law and Business Law for California on
Q: We are a pro per plaintiff. We prevailed in civil trial. After judgment FINALLY entered (defendant kept objecting to pro

proposed judgments) they filed for new trial. One base was newly discovered evidence. We had filed an unrelated suit against other party 3 months AFTER verdict on completely different grounds. Defendants claim this undercuts our credibility and shows our awarded damages are excessive since new suit... View More

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answered on Apr 3, 2024

Based on the information provided, it seems unlikely that the defendant's claim of newly discovered evidence would qualify as grounds for a new trial in California. Here's why:

1. Timing: The new evidence (your unrelated lawsuit) was filed three months after the verdict in the...
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1 Answer | Asked in Business Law, Contracts, Real Estate Law and Small Claims for California on
Q: What is the rule for property managers in real estate law? That they have to be licensed to perform certain duties?

The management must be incensed agent to exercise certain duties,With the exception of living on-sight, which in this case they can perform those duties, but they must be under the close supervision of a licensed realtor. Paraphrased but what if the general manager of a apartment operates these... View More

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answered on Apr 3, 2024

Under California law, property managers who perform certain duties must be licensed real estate agents or brokers. The specific rules are outlined in California Business and Professions Code Section 10131 and 10131.01.

If a property manager is not licensed and performs duties that require a...
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1 Answer | Asked in Real Estate Law and Business Law for California on
Q: I own a condominium which is a rental property and managed by a property management company.

Does the rent received qualify as qualified business income? And is the rental of the property considered as a pass-through business?

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answered on Apr 1, 2024

The rental income from your condominium may qualify as Qualified Business Income (QBI) for federal tax purposes, and the rental property could be considered a pass-through business. However, there are some factors to consider:

1. Qualified Business Income (QBI): The rental income from your...
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