Corporations and limited liability companies (LLCs) generally keep business obligations separate from their owners’ personal assets. Piercing the corporate veil in California is the exception. A court may disregard that separation and hold an owner responsible for company obligations, but only in limited circumstances. California courts apply a two-part alter ego test. First, there must… Read more »
Most California businesses no longer have to file beneficial ownership information (BOI) reports with the Financial Crimes Enforcement Network (FinCEN). Under a final rule announced on August 11, 2026 and effective August 14, 2026, entities created under U.S. law are exempt from federal BOI reporting. That includes California LLCs and corporations. Some foreign entities may… Read more »
Federal beneficial ownership reporting requirements changed significantly in 2026. Under the revised rules, companies formed under U.S. law, including California LLCs and corporations, no longer have to file beneficial ownership information (BOI) reports with the Treasury Department’s Financial Crimes Enforcement Network (FinCEN). FinCEN announced its final rule on August 11, 2026, which took effect on… Read more »
One partner stops sharing financial statements. Checks from the partnership account start covering personal expenses. A major lease is signed without the approval the agreement requires. Disagreements are common in jointly owned businesses. Some actions, however, may violate contractual obligations or legal duties owed to the other partners. A breach of partnership agreement California courts… Read more »
California businesses can operate through several entity structures, and the two most common are the limited liability company (LLC) and the corporation. Both can provide liability protection. They operate differently. The LLC vs corporation California decision turns on a handful of factors: formation, ownership, management, liability, raising capital, ongoing compliance, and taxes. Real estate can… Read more »
California has broad authority to regulate businesses and activities within the state. Consumer protection, health and safety, licensing, and employment rules all fall within that authority. A company does not escape those rules because it sells across state lines. That authority has constitutional limits, though. When a state regulation affects interstate commerce, the Commerce Clause… Read more »
Dr. Robert I. McClurg, et al. v. Orthalliance, Inc. involved a large group of orthodontists represented by Kassouni Law in Los Angeles County Superior Court. At the center of the dispute was a non-competition covenant that restricted where the orthodontists could practice after leaving their relationship with Orthalliance. The litigation challenged whether Orthalliance, Inc., a… Read more »
When a California contract is breached, the injured party has more options than simply accepting the loss or filing a lawsuit. California contract law provides several potential remedies, from monetary damages to court orders requiring performance, depending on the agreement, the breach, and the losses. Not every remedy is available in every situation. The appropriate… Read more »
California businesses encounter disputes involving contracts, partners, shareholders, vendors, customers, employees, and other parties. When a dispute cannot be resolved through direct negotiation, two of the most common paths forward are mediation and litigation. Choosing between them, or combining them strategically, can significantly affect the cost, timeline, and outcome of a business dispute. Litigation is… Read more »
Most business disputes do not come from bad faith. They often arise from gaps in the agreement. Two parties sign a contract, each believing they understand the deal. Later, they discover the contract says something different or does not address the situation at all. California businesses rely on contracts for vendor relationships, client engagements, partnerships,… Read more »
