Under California Law, a corporation is a separate entity. Each entity will stand on its own. A corporation, if adequately set up and maintained, can save you a great deal of time and money. If your corporation is sufficiently capitalized and done correctly, you can shield your personal liability from the corporate liability. However, all of this has to be done correctly.
Corporations can have special tax ramifications. If you are thinking of incorporating, you should talk over the tax ramifications with an accountant. In addition to shielding your personal liability from your corporate liability, a corporate business can still exist after the death of the founders of the corporation. In theory, a corporation can go on indefinitely.
In addition to tax liability, there are costs associated with incorporating. It can become very time-consuming. Once a corporation has been set-up, there are steps that need to be taken to continue to run the corporation such as holding regular meetings and keeping corporate records.
Wednesday, December 9, 2009
Wednesday, November 25, 2009
MECHANIC'S LIENS
A Mechanic's Lien is a document that is recorded at the County Recorder's Office. It provides a lien for the person who recorded that lien. In other words, it puts a "hold" on property until the person is paid. That person then has the right to foreclose on the property that has been liened.
Sometimes it is unfortunate that the homeowners are the ones who are responsible to pay the lien. The reason it can be unfortunate is because there are instances where the homeowner can pay the prime contractor in full for a job and the prime contractor does not pay the subcontractor in full. If the subcontractor places a lien on the property, the homeowner can ultimately be responsible.
However, Mechanic's Liens, Stop Notices and Bonds are documents that should not be taken lightly. For instance, material suppliers are not usually entitled to a lien since the materials have to be incorporated into the structure (installed) by them in order to have the lien rights. Mechanic's Liens have been discussed and litigated many times through California law. California law is very different than other state's laws and one should seek the aid and advice of a competent California construction attorney.
Sometimes it is unfortunate that the homeowners are the ones who are responsible to pay the lien. The reason it can be unfortunate is because there are instances where the homeowner can pay the prime contractor in full for a job and the prime contractor does not pay the subcontractor in full. If the subcontractor places a lien on the property, the homeowner can ultimately be responsible.
However, Mechanic's Liens, Stop Notices and Bonds are documents that should not be taken lightly. For instance, material suppliers are not usually entitled to a lien since the materials have to be incorporated into the structure (installed) by them in order to have the lien rights. Mechanic's Liens have been discussed and litigated many times through California law. California law is very different than other state's laws and one should seek the aid and advice of a competent California construction attorney.
Wednesday, November 11, 2009
SUBSTANTIAL COMPLETION
What is completion? In this case, substantial evidence supported the trial court’s findings regarding project completion date. That is the time when everything is completed.
Completion in a construction case is very important. Actual completion means the project is complete. This does not mean that all monies have been paid. Only that the job is complete.
The trial court made a finding regarding the project completion date even though the homeowner took occupancy prior to that date because the owner did not yet have full use of the facilities at the time. That is to say that the owner was not able to use the entire project at that time and therefore the project was not complete.
Completion in a construction case is very important. Actual completion means the project is complete. This does not mean that all monies have been paid. Only that the job is complete.
The trial court made a finding regarding the project completion date even though the homeowner took occupancy prior to that date because the owner did not yet have full use of the facilities at the time. That is to say that the owner was not able to use the entire project at that time and therefore the project was not complete.
Wednesday, October 28, 2009
CONTRACTORS' STATE LICENSE BOARD
The Contractors' State License Board is the agency that controls the Board and its operations.
The Contractors' State License Board is governed by a body of nine contractors, and others, as part of their agenda. The Registrar of contractors, Steve Sands, is the Chief Executive Officer.
The Contractors' State License Board has three or four separate entities. The ones that run it are its senior staff. The Board is made up of nine senior staff. The senior staff is Cindi Christenson, Chief Deputy Registrar; Mike Brown, Chief of Legislation; Jonathan Buttle, Budget Analyst; Amy Cox O'Farrell, Chief of Information Technology; Dave Fogt, Chief of Enforcement; Rick Lopes, Chief of Public Affairs; Karen Ollinger, Chief of Licensing; Larry Parrott, Chief of Administration; and Bob Porter, Chief of Testing.
The job of the Contractors' State License Board is to protect consumers.
The Board Members at the Contractors' State License Board right now are:
Edward "Eddie" Barnes, Chair
Robert Lamb
Robert Brown
Joan Hancock
Matthew Kelly
Louise Kirkbride
Ed Lang
Lisa Miller-Strunk
Bruce Rust
The Contractors' State License Board website is a great source of information www.cslb.ca.gov. Their address is 9821 Business Park Drive, Sacramento, CA 95827. 1-800-321-CSLB (2752).
The Contractors' State License Board is governed by a body of nine contractors, and others, as part of their agenda. The Registrar of contractors, Steve Sands, is the Chief Executive Officer.
The Contractors' State License Board has three or four separate entities. The ones that run it are its senior staff. The Board is made up of nine senior staff. The senior staff is Cindi Christenson, Chief Deputy Registrar; Mike Brown, Chief of Legislation; Jonathan Buttle, Budget Analyst; Amy Cox O'Farrell, Chief of Information Technology; Dave Fogt, Chief of Enforcement; Rick Lopes, Chief of Public Affairs; Karen Ollinger, Chief of Licensing; Larry Parrott, Chief of Administration; and Bob Porter, Chief of Testing.
The job of the Contractors' State License Board is to protect consumers.
The Board Members at the Contractors' State License Board right now are:
Edward "Eddie" Barnes, Chair
Robert Lamb
Robert Brown
Joan Hancock
Matthew Kelly
Louise Kirkbride
Ed Lang
Lisa Miller-Strunk
Bruce Rust
The Contractors' State License Board website is a great source of information www.cslb.ca.gov. Their address is 9821 Business Park Drive, Sacramento, CA 95827. 1-800-321-CSLB (2752).
Thursday, October 15, 2009
INSPECTIONS BY CAL/OSHA
All contractors should be prepared for an inspection. This happens quite often. You should train your staff on how to respond.
Make sure that your prevention program is organized and up to date. Do not fumble in front of the the inspector.
Inspections can target high-hazard businesses with loss rates at or above what is normally expected. A complaint might also trigger an inspection.
Make sure your security people know what to do if an inspection comes around. Have someone with some real understanding available to help you. The inspectors will not help you.
Don't be rude. Be friendly. However, do not give away the store. After the inspectors do what they need to do, you should make sure that you get an indication of what the inspector is asking for. Most of all make sure of what you will say and have said.
Make sure that your prevention program is organized and up to date. Do not fumble in front of the the inspector.
Inspections can target high-hazard businesses with loss rates at or above what is normally expected. A complaint might also trigger an inspection.
Make sure your security people know what to do if an inspection comes around. Have someone with some real understanding available to help you. The inspectors will not help you.
Don't be rude. Be friendly. However, do not give away the store. After the inspectors do what they need to do, you should make sure that you get an indication of what the inspector is asking for. Most of all make sure of what you will say and have said.
Wednesday, September 30, 2009
FRAUDULENT FILING FEE REQUESTS (Cont.)
Other warning signs of fraudulent letters sent to business owners by the bad guys regarding the California Corporations Code filing are:
We are all working hard to keep customers happy. Customers are our life blood.
Here is some official information for any business receiving one of these letters: Statement of Information forms and instructions are available through the Secretary of State's website here http://www.sos.ca.gov/business, and the fee required to file the Statement is $25 for California stock and foreign corporation, and $20 for California nonprofit corporations and all limited liability companies.
- References or quotes to Corporation Code sections inapplicable to the type of entity being solicited, such as Code sections applicable to corporations when soliciting a limited liability company;
- References an "annual fee" or "annual payment" rather than a filing fee and that is far in excess of the filing fee for a Statement of Information;
- Indicates the submitted information will be treated as private and confidential.
We are all working hard to keep customers happy. Customers are our life blood.
Here is some official information for any business receiving one of these letters: Statement of Information forms and instructions are available through the Secretary of State's website here http://www.sos.ca.gov/business, and the fee required to file the Statement is $25 for California stock and foreign corporation, and $20 for California nonprofit corporations and all limited liability companies.
Wednesday, September 16, 2009
Fraudulent Filing Fee Requests
A new pattern of criminal activity raised its ugly head in California. The Attorney General won a $1.2 million award against rip-off artists. Everybody should keep an eye out for that.
The rip-off revolves around a deceptive letter sent by the bad guys, encouraging businesses to comply with their California Corporations Code filing obligations. The bad guys sent a deceptive letter which suggested that the businesses comply with their California Corporations Code obligations by submitting substantial fees to the third party.
This was reversed by the court. The court held that the defendants omission caused the plaintiff to file an untimely claim by the delay.
The letter is often characterized by the following:
The rip-off revolves around a deceptive letter sent by the bad guys, encouraging businesses to comply with their California Corporations Code filing obligations. The bad guys sent a deceptive letter which suggested that the businesses comply with their California Corporations Code obligations by submitting substantial fees to the third party.
This was reversed by the court. The court held that the defendants omission caused the plaintiff to file an untimely claim by the delay.
The letter is often characterized by the following:
- Appears similar to a Secretary of State form (generally the Statement of Information form), containing an official-looking seal;
- Implies that failing to return the form and pay the requested fee may place the business in legal jeopardy, or might cause the business' filings with the California Secretary of State to be in default or noncompliant status;
- Contains a reference to a "file number," "Corp Number," "Corporation Number," or "Control Number" that does not match the number assigned to the entity by the California Secretary of State;
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