Frequently Asked Questions

An LLC generally offers more flexible management and pass-through taxation by default, while a corporation follows a more formal governance structure (board, officers, shareholders) and may better suit businesses planning to raise outside investment. The right choice depends on your goals, number of owners, and tax situation.

Start with your operating or shareholder agreement — it may already specify how deadlocks are resolved. Where it doesn’t, options include negotiated buyouts, mediation, or, in more serious cases, a dissolution or Corporations Code section 2000 buyout proceeding. See our Shareholder & Partnership Disputes page for more detail.

Verbal agreements can be enforceable, but they’re far harder to prove and interpret when a dispute arises. A written agreement that spells out each party’s obligations, payment terms, and what happens if something goes wrong is one of the most cost-effective protections a business owner can put in place.

Depending on the contract terms, options can include withholding remaining payment, hiring a replacement contractor and seeking the difference in cost, or pursuing a claim for breach of contract or defective work. Timing matters — document the condition of the work promptly and review your contract’s notice and cure provisions.

A mechanics lien is a claim against real property recorded by a contractor, subcontractor, or supplier who hasn’t been paid for work or materials. California imposes strict, short deadlines to preserve lien rights (including preliminary notice requirements), so it’s important to act quickly if payment is in question.

Yes. Working with an unlicensed contractor can affect your legal remedies and, for the contractor, can bar them from recovering compensation for their work at all. We regularly advise both contractors and property owners on licensure issues that arise mid-project or after a dispute begins.

A PAGA notice alleges Labor Code violations and is a prerequisite to a representative lawsuit under the Private Attorneys General Act. Under the 2024 reform, employers now have a limited window to cure certain violations before facing litigation. Response deadlines are short — contact counsel promptly upon receiving one.

California law generally requires non-exempt employees be provided specific meal and rest periods, with premium pay owed for missed breaks. Requirements vary by shift length and industry, and compliance failures are a common source of wage and hour claims and PAGA notices.

Exempt classification depends on both the employee’s actual job duties and a minimum salary threshold, not job title alone. Misclassification is a frequent source of wage and hour exposure — we help employers audit classifications before they become a claim.

An easement is a right to use another’s property for a specific purpose (like access or utilities); a boundary dispute concerns where the property line actually lies. Both can arise from old surveys, informal agreements, or long-term use, and both benefit from a title review early on.

It depends on tax treatment, liability exposure, and whether key contracts, leases, and licenses can be assigned to the new owner. See our Buying or Selling a Business page for a fuller discussion of the tradeoffs.

Beyond price and closing date, a well-drafted agreement addresses contingencies, disclosures, title and escrow terms, and remedies if either party fails to perform. Reviewing these terms before signing — not after a problem arises — is where legal counsel adds the most value.