HOW TO BUY AN EXISTING BUSINESS By Kelly Bagla, Esq. Buying a business is a huge decision but when you pull the trigger on buying an existing business, you get the opportunity to become an entrepreneur without starting a small business completely from scratch.  Every year more than 500,000 businesses change hands, and that number is expected to skyrocket in the next several years as millions of baby boomers begin retiring and selling their businesses. Before you begin the journey of buying a business of your own, find out everything you need to know, and the things you don’t know, to av ..read more

NONCOMPETE AND NONSOLICITATION TWO NEW CA LAWS IMMEDIATELY AFFECTING BUSINESS OWNERS IN 2024 By Kelly Bagla, Esq.  Two new California laws directly affecting business owners went into effect on January 1, 2024.  California has strengthened the prohibition against noncompete and nonsolicitation agreements, which also posse potential liability for employers who require their employees to sign noncompete agreements or attempt to enforce existing noncompete agreements against former employees. Assembly Bill 1076 states that it is unlawful to include noncompete and nonsolicitation clause ..read more

CORPORATE TRANSPARENCY ACT PREPARING FOR THE FEDERAL DATABASE OF BENEFICIAL OWNERSHIP INFORMATION By Kelly Bagla, Esq. The Anti-Money Laundering Act of 2020, which is part of the National Defense Authorization Act for Fiscal Year 2021 and includes the Corporate Transparency Act, became law on January 1, 2021. The Corporate Transparency Act requires certain business entities to file, in the absence of an exemption, information on their “beneficial owners” with the Financial Crimes Enforcement Network (“FinCEN”) of the U.S. Department of Treasury. The information will not be publicly available ..read more

25 FREQUENTLY ASKED QUESTIONS ON STARTING A BUSINESS By Kelly Bagla, Esq. Having been a start-up lawyer and entrepreneur, I have been asked many of the following questions over the years by entrepreneurs when starting their company. Sometimes there isn’t an easy answer, and as lawyers often like to say, “it depends on the circumstances.” But here are my short-hand answers to the frequently asked start-up questions: 1. Should I form my company as C corporation, an S corporation, an LLC, a partnership or a sole proprietorship? Start it as an S corporation unless you have to issue both common st ..read more

You may have heard of or even use “Social Media Influencers.” This is where businesses sometimes try to reach a broader audience by enlisting “social media influencers,” a term for people who have achieved some level of popularity or recognition online. Social media influencers endorse a product or service offered by a business on platforms like Facebook, Instagram, Twitter, YouTube, or TikTok. In exchange, the business provides them with money, free products or services, or a combination. There are four main tiers of influencers: Nano Influencers: 10,000 or fewer followers Influencers: 10,0 ..read more

Artificial intelligence (AI) is rapidly changing the world, and the legal profession is no exception. AI-powered tools are now being used to draft contracts, including buy/sell agreements. While AI can be a valuable tool, it is important to be aware of the potential pitfalls of using it to draft legal documents. Many people believe AI technology works in the same way as a human brain, but that’s not the case. Many current AI systems work in manners different from humans. For example, they review data using machine learning, or algorithms, rather than cognitive processes. AI is adept at proces ..read more

Starting a business is a big undertaking, but it can be incredibly rewarding. If you’re thinking about starting your own business, here are five major tips to help you get started: 1. Do your research. Before you do anything else, it’s important to do your research. This includes researching your target market, your competition, and the industry you’re entering. The more you know about the landscape, the better prepared you’ll be to make informed decisions about your business. 2. Create a business plan. A business plan is a roadmap for your business. It should include your business goals, you ..read more

When starting a new business, one of the most important decisions you will make is where to register your corporation. There are many factors to consider when making this decision, such as the state’s corporate tax rate, fees, and regulations. Here are some of the best states to register a corporation in the US: Delaware: Delaware is often considered the best state to register a corporation because of its favorable corporate laws. The state has a low corporate tax rate, no personal income tax, and a business-friendly environment. Nevada: Nevada is another popular state for corporate registra ..read more

Selling a business can be a complex and intricate process that involves numerous legal considerations. Whether you’re a seasoned entrepreneur or a first-time business owner, enlisting the assistance of a skilled business lawyer can make a significant difference in navigating the complexities of a business sale. This article will explore the invaluable role a business lawyer plays in facilitating the sale of a business and ensuring a smooth and successful transaction. Understanding the Business Sale Process Selling a business involves more than just finding a buyer and transferring ownership ..read more

Acquiring an existing business can be an exciting opportunity for entrepreneurs looking to expand their operations or venture into new markets. However, the process of buying a business can be complex and laden with legal intricacies that demand careful attention. That’s where a skilled business lawyer, such as those at Bagla Law, specializing in business formation and asset protection, can play a pivotal role. In this article, we will explore the various ways in which a business lawyer can assist you throughout the process of acquiring a business, ensuring a smooth and legally sound transact ..read more