Lawyer Monthly - September 2023

the Corporations Code as the guiding and driving force of a corporation that can provide for so much more than the code and help to keep the business out of different types of litigation. How can an experienced business law attorney help business owners to identify these risks and plan to avoid them? An experienced business law attorney can help business owners determine the right type of entity for their needs and explain in laymen’s terms what the Corporations Code requires to properly form and maintain a business entity. A business law attorney will also have the knowledge and experience to anticipate legal and tax problem areas for the client and their business in order to prepare a complete and specific governing agreement that addresses procedures for governance of the business, ownership rights and electing officers and directors. Two of the most common issues I see with my business clients pertain to an owner, member or partner that has begun competing with the company and/or is injuring the company to his or her own benefit, or an owner or member that has passed away unexpectedly and without a plan. A well-drafted operating agreement or corporate by-laws will give guidance to the owners on what they are authorised to do in difficult situations such as these. Can you share any developing trends that you are witnessing in the business law landscape, especially relating to business formation? With an increase in targeted internet marketing and search engines that can provide a barrage of information in an instant, I have personally seen an influx in clients trying to take shortcuts and form and operate business entities only by searching the internet and pulling up forms that may or may not be applicable. My clients have come in with forms from different states, forms that do not apply or with forms from a friend, bookkeeper or even their realtor in an attempt to form a business entity, but without having the requisite knowledge and information to do so. For example, I knew a gentleman who utilised the services of a company whose owners portrayed themselves as business formation experts online, had a flashy and impressive website and lots of fake reviews. In the end, they charged this gentleman money and, due to the incompetence of the company, committed a serious filing error which legally linked my client to a defunct corporation that had pending debts and liens. This man now has exposure to serious liability for a corporation he has never owned, all as a result of the error that the company he initially paid to form his corporation refuses to fix. To add injury to insult, there is no real point to sue the company for relief because it is involved in three current lawsuits already and has a host of judgments against it. I have seen so many hardworking people find themselves in difficult and precarious financial, tax and legal positions because they utilised internet forms or internet companies to form a business without the tools for proper formation maintenance of a business in California. I highly recommend utilising the services of an experienced business law attorney to provide state-specific, accurate guidance and assistance to set the business entity on the right path to maximize benefits, limit personal liability, and minimize negative tax consequences. EXPERT INSIGHT 53 About Jessica Zubiate-Beauchamp Jessica Zubiate-Beauchamp is the Managing Partner of Zubiate Beauchamp, LLP, which she joined in 2011. Jessica participates in all stages of civil litigation across a variety of areas of law, including trusts and estates, trade secrets, contracts, unfair business practices, business formation and litigation, and real estate, as well as contributing her knowledge on copyright.. Jessica is currently a member of the California Lawyers Association and the Eastern Bar Association. She is proud to provide pro bono legal business services to local non-profit organisations that promote music and arts education. About Zubiate Beauchamp LLP Zubiate Beauchamp LLP is a general civil law practice that serves a broad range of clients in California across Los Angeles County, the Inland Empire, Orange County and Riverside County. The firm specializes in transactional and litigation matters, with a particular focus on business law, real estate, , willsand probate, trust administration, employment and contract law. Contact Jessica Zubiate-Beauchamp Partner, Zubiate Beauchamp LLP 333 East Foothill Boulevard, San Dimas, CA 91773, USA Tel: +1 909-305-5544 Fax: +1 909-305-5564 E:

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