Law Offices of Sanborn & Sine

How about a regular ol' garden variety corporation? The corp itself gets taxed, its employees get taxed, and its shareholders get taxed on their income and/or dividends. This can seriously cut into net profits. But a corp generally protects the personal assets of the shareholders, owners, and employees from debts and other liabilities of the corp. And, deductions, medical plans, savings vehicles, and so forth, can also be somewhat magnified through a corp, all to the benefit of its employees.

So what's a partnership? Two or more people own a partnership, and there are several types of partnerships. Generally, all partners face personal liability for all debts and obligations, but specified "limited" partners, as in a "Limited Partnership", face the loss of only their capital contributions, while the general partner(s) faces any and all debts and liabilities. The partnership entity does not get taxed. But the partners themselves are taxed much like an individual. Partnerships do, however, avoid the double taxation of corporations.

A Sole Proprietorship is the business form most often unknowingly and unwisely used by the vast majority of small businesses. The owner is fully responsible for all assets, all income, all taxes, all self employment taxes, social security taxes, etc. etc. Further, the owner is completely liable and responsible for any legal liability arising out of the business, including any type of negligence, intentional acts, wrongful death, and again, etc. etc. There is no entity or business protection. Sole proprietors are laid bare to the world, and sometimes, it's a mean and vicious world.

Watch those time limits for workers compensation (job injuries) claims. Generally, an injured employee must inform the employer of the injury within 30 days from when the injury occurred. Of course, do this in writing for your own protection. If you disagree with any actions by the workers compensation insurance company, then you must file a formal claim with the Workers Compensation Appeals Board Court within one year from the date of the injury, or one year from the last indemnity payment or the providing of medical treatment benefits. Watch those time limits. They're critical.

So regretfully, parents oft use their children as pawns to "get the other guy." Our Calif court system provides the S.A.F.E. program for kids of separated and/or divorcing parents. Through several actions, the SAFE ACCESS AND FRIENDLY EXCHANGES FOR KIDS program allows for neutral exchanges and supervised visitation.

Beginning in 2013, California employers are not allowed to ask for an employee’s or a job applicant’s social media information or log-in information concerning that individual’s private life.

Owners of small corporations or LLCs should have their entity papers and activities checked annually to make sure that their entity of choice is operating to protect the owners' personal assets.

When the housing market is going up, backing out of a sale contract is overwhelmingly done by the seller; and by the buyer when the market is in a downswing. Know your rights under all provisions in a real estate sale contract before signing anything. Ask your agent or an attorney experienced in real estate matters.

In the Brinker case, the California Supreme Court ruled that employers have the duty to only provide the opportunity for employees to take all required rest breaks, and not to make certain that employees actually take their rest breaks. A disgruntled employee can argue whether the employer made such an opportunity clear enough for the employees to understand their rights to take rest breaks. This leads to the recommendation that a clearly written memo, even if one page only, be given to every new employee, and that the employee sign the memo for proof of receipt.

Can you be overinsured or underinsured? You bet you can, and at great needless expense to you personally or to your business. You should consult with an attorney who is familiar with insurance, or your insurance agent, on each policy and each coverage in your policies. There's about one in 3 chances you'll be surprised.

At least a couple-few times every year without fail, I am confronted with a new client who asks me how to avoid probate - after the death of the subject person. Ninety per cent of the time, there is no legal way, and it winds up costing my client thousands and thousdands of dollars in probate fees and costs. Plan ahead with a trust to stay out of probate. "It's never too late" doesn't work. Rather, it's never too early to plan ahead.

So many times clients ask me if they should put their children on title to real property with them. Absent those rare cases, the answer in my book is "NO." We cannot predict the future, and so regretfully in today's world, good solid children from good solid families become addicted to drugs, alcohol, etc. And, once you place another person on title, you cannot simply take the added person off title. So make a provision in your Will or trust to leave that real property to your child. This future gift can be changed until your death, just in case your child's life becomes questionable.

Not all new 2013 laws are providing more restrictions for CA drivers. AB 1708 makes it easier for you to show your proof of registration and insurance on your vehicle -- you can now do so by using your mobile device."