If a business dispute arises, filing a lawsuit should be considered a last resort. Litigation is costly and time-consuming, and offers the potential for the process to drag on through discovery and appeals.

Arbitration can be an attractive alternative for parties seeking a faster resolution to their dispute that is still enforceable and legally binding. There are some situations, though, when arbitration may not be viable. Let’s explore those possibilities.

Conditions for Arbitration

Arbitration clauses are often included in business contracts. The contract will have language mandating the use of arbitration if disputes arise.

Even if your contract does not include an arbitration clause, you can still engage in arbitration if both parties mutually agree on it. If one party does not agree, though, there is no way to force them into arbitration without a binding agreement. In this case, litigation might be your only option.

The Benefits of Arbitration

Arbitration has a number of benefits over litigation, including:

• Privacy: Arbitration is a private process, making it suitable for businesses that want to keep the details of the dispute and its resolution confidential, unlike court proceedings which are typically public.
• Speed: Arbitration can often be quicker than litigation, which can take years to resolve if courts are backlogged.
• Expertise: Arbitrators often have specific expertise in the industry or legal area relevant to the dispute, which can lead to a more informed and appropriate resolution.
• Flexibility: Parties have more control over the arbitration process compared to court proceedings. They can choose the arbitrator(s), define procedural rules, and select the time and place of hearings.

Cost: If the process is streamlined, arbitration can be less costly than litigation. However, this is not always the case, as fees and administrative costs can add up.

Situations Where Arbitration May Not Be Viable

Arbitration may not be viable in the following circumstances:

• Lack of Agreement: If one party refuses to agree to arbitration, it cannot be forced unless a contract clause mandates it.
• Need for Precedent: If there is no legal precedent for your case, then establishing a precedent and detailed public record through litigation might be preferred.
• Discovery Requirements: If extensive discovery is needed, litigation may be more suitable, since arbitration can have more limited discovery processes.
• Appeal Rights: Arbitration decisions are difficult to appeal, so if the parties want the option to challenge the decision, then litigation might be the better option.

If you’re considering arbitration and need legal advice on business matters, contact Los Angeles business attorney Peter Bronstein. He’ll help you find the best path forward toward a speedy and fair resolution to your business dispute.

Franchise law is notoriously complicated. If you find yourself embroiled in a franchise dispute, there are ways to resolve the matter without resorting to legal action. Follow these steps to attempt to resolve your franchise dispute in the most speedy and equitable manner possible.

Review the Franchise Agreement

Carefully read the franchise agreement to understand the terms, obligations, and dispute resolution mechanisms stipulated. Look for specific clauses related to dispute resolution, such as mediation, arbitration, or litigation.

Have an Open Dialogue and Attempt to Resolve the Matter Internally

Before you pursue any third-party mediation that could complicate the matter, start a conversation between the franchisor and franchisee to see if you can work things out. Aim for a cooperative and constructive dialogue. Make sure that you document in writing the specific points of contention and any communications exchanged.

Mediation

If you are unable to resolve the matter through direct discussions, engage a neutral third-party mediator. Mediation is a non-binding process, and the presence and advice of a third party may help you to resolve gridlock and reach a fair agreement.

Arbitration

The next step up from mediation is arbitration. Unlike mediation, which is non-binding, the decision of an arbitrator is usually final and enforceable. Make sure you review the franchise agreement to see if it specifies arbitration.

Litigation

Consider litigation only as a last resort. However, if all the above steps fail, and arbitration is not stipulated, it may be time to file a lawsuit in the appropriate court and engage legal counsel experienced in franchise law.

With 30 years of experience as a Los Angeles business attorney, Peter Bronstein is your top choice for franchise litigation. He’ll give you expert legal advice and work with you to resolve your franchise dispute. Contact Peter Bronstein today for a franchise law consultation.

California boasts a vibrant and diverse business landscape, attracting entrepreneurs from around the globe. However, navigating the state’s complex business entity laws can be daunting for aspiring business owners. Understanding the various entity options and their legal implications is crucial for establishing a solid foundation for your business.

Sole Proprietorship

A sole proprietorship is the simplest form of business entity, owned and operated by a single individual. While easy to establish and maintain, sole proprietorships offer no legal separation between the owner and the business, exposing personal assets to business liabilities.

Partnership

Partnerships involve two or more individuals who share ownership and management responsibilities. General partnerships offer shared liability among partners, while limited partnerships provide limited liability for some partners. Partnership agreements outlining each partner’s rights and obligations are essential for clarifying expectations and minimizing disputes.

Limited Liability Company (LLC)

LLCs are a popular choice for small businesses due to their flexibility and liability protection. LLC owners, known as members, enjoy limited liability for the company’s debts and obligations while retaining pass-through tax treatment.

Corporation

Corporations are distinct legal entities separate from their owners, offering the highest level of liability protection. Shareholders own the corporation, which is managed by a board of directors. Corporations can be classified as C corporations or S corporations, each with unique tax implications and regulatory requirements.

Nonprofit Organizations

Nonprofits are formed to pursue charitable, educational, or social purposes rather than generating profits for shareholders. Establishing and operating a nonprofit organization in California requires compliance with state and federal regulations governing tax-exempt status and charitable activities.

Choosing the right business entity is a critical decision that can have significant legal and financial implications for your venture. Consulting with a knowledgeable corporate attorney such as Peter C. Bronstein can help you navigate California’s business entity laws and select the structure that best suits your needs and objectives.

In today’s litigious society, safeguarding your assets has never been more critical. Whether you’re a business owner, investor, or high-net-worth individual, understanding asset protection strategies is paramount to shield your wealth from potential threats.

Asset protection encompasses a range of legal techniques designed to shield your assets from creditors, lawsuits, and other liabilities. While there is no one-size-fits-all solution, here are some common strategies to consider:

Business Entities

Structuring your business as a limited liability entity, such as an LLC or corporation, can offer a significant degree of asset protection. By separating your personal assets from those of your business, you can shield your personal wealth from business-related liabilities.

Trusts

Trusts are versatile estate planning tools that can also provide asset protection benefits. Irrevocable trusts, in particular, can shield assets from creditors while allowing you to retain some degree of control over them.

Homestead Exemptions

In some states, including California, homeowners can protect a portion of their home’s equity from creditors through homestead exemptions. Understanding the intricacies of these exemptions can help you safeguard your primary residence from potential creditors.

Insurance

Adequate insurance coverage is a fundamental component of any asset protection strategy. Liability insurance, umbrella policies, and professional liability coverage can help mitigate the financial impact of lawsuits or claims against you or your business.

Offshore Trusts and Entities

For individuals with substantial assets, offshore trusts and entities can offer additional layers of protection. While these strategies are more complex and require careful consideration of tax implications, they can provide enhanced asset protection in certain circumstances.

Navigating the nuances of asset protection requires careful planning and tailored solutions based on your unique circumstances and objectives. Consulting with an experienced asset protection attorney and business law expert such as Peter C. Bronstein can help you develop a comprehensive strategy to safeguard your wealth and secure your financial future.

Operating a business in California offers unparalleled opportunities for growth and innovation. However, navigating the intricate web of our state’s legal regulations and business requirements can pose significant challenges for business owners. Here are some essential legal steps to consider:

Entity Formation

Choosing the right business structure is paramount. Whether you opt for a sole proprietorship, partnership, LLC, or corporation, each entity type has unique legal implications and tax considerations. Consulting with a knowledgeable corporate attorney can help you select the most suitable structure for your business.

Regulatory Compliance

California has stringent regulations governing various aspects of business operations, from employment practices to consumer protection laws. Becoming familiar with these regulations and ensuring compliance is essential to avoid costly fines or legal disputes.

Contracts and Agreements

Clear and comprehensive contracts are the cornerstone of any successful business relationship. Whether you’re entering into agreements with suppliers, clients, or employees, having legally sound contracts drafted by a skilled business lawyer can protect your interests and minimize the risk of disputes.

Intellectual Property Protection

Safeguarding your intellectual property rights is critical in today’s competitive landscape. Whether it’s trademarks, copyrights, or patents, securing appropriate protections can prevent unauthorized use or infringement of your valuable assets.

Employment Laws

California’s employment laws are among the most complex in the nation. From wage and hour regulations to employee classification issues, ensuring compliance with state and federal labor laws is essential to avoid costly litigation.

By proactively addressing these legal considerations with the guidance of an experienced California business attorney such as Peter C. Bronstein, you can mitigate risks and position your business for long-term success in the dynamic California market.

Business Planning with an Attorney

Partnership Agreements and Regulatory Requirements

Additionally, navigating the maze of regulatory requirements and compliance obligations can be daunting. A skilled attorney can ensure your business adheres to state and federal regulations, minimizing the risk of costly penalties or legal entanglements.

Ultimately, the decision to hire a business formation attorney should be viewed as an investment in the long-term success and sustainability of your business. By seeking legal guidance early in the process, you can lay a solid foundation for growth while safeguarding your interests against potential legal pitfalls.

For more information on legal needs for business owners, contact Los Angeles business attorney Peter C. Bronstein. Get your business started on the right foot with solid legal advice.

Choose A Business Structure

The first item to discuss with your business law attorney when starting your own business in Los Angeles, California is your business structure. You have three basic options when deciding on a structure:

• Doing Business As (DBA): A DBA is not actually a separate structure. It is just a different name that an individual or a set of partners uses as their business name.
• Corporation: A corporation is an entirely separate entity that provides liability protection to the owners of a business. A corporate structure includes shareholders, directors, and officers, and is the entity of choice for large companies and startups that intend to fundraise. Certain professionals are required to structure their business as a professional corporation (PC):
  • Accountants
  • Acupuncturists
  • Architects
  • Chiropractors
  • Clinical social workers
  • Dentists
  • Lawyers
  • Counselors
  • Doctors
  • Speech-language pathologists
• Limited Liability Company (LLC): An LLC is a separate entity from an owner or partner but also provides very easy management, since it does not require directors or officers. The LLC structure has largely replaced the DBA and Corporation structures in popularity in recent years, as it provides liability protection with much less complexity and taxation.

Choose A Business Name

Deciding on a business name is easier said than done. There are many potential legal and business problems that could arise as a result of choosing the wrong name for your company. Make sure that you’ve covered the basics of a successful business name. Is the name unique and easy to pronounce? Can it remain relevant over time? Once you decide on a list of possible business names, consult with your Los Angeles business law attorney to ensure that you complete the following steps:

• Search The Internet For Your Desired Business Name – Search for your potential business name using as many search engines as possible to look for any potential conflicts, particularly in your state or local area. If you intend to operate an online business that provides goods or services nationally or internationally, then it is especially important that your business name be unique. This search should reveal any cases where a company name is being used online but has not been officially trademarked.
• Perform A Trademark Search At The US Patent And Trademark Office – This will give you a very good idea of whether your business name will run into any conflicts. There is somewhat of an art to trademark searches and there are trademark specialists who will charge you a significant amount of money to do a thorough search for you. It is your best bet to simply ask your trusted Los Angeles business law attorney to perform the search for you. It is important to also search for misspellings, plurals, variations of spelling, and other versions of your desired name to be sure that it’s not already registered in some form.
• Search The California Secretary Of State’s Business Entity Database – Be sure to search or ask your business law attorney to search for spelling variations, plurals and, misspellings of your desired business name. California may reject a name that is too similar to another business name, and then you’ll have to start your name search over.

California business names must adhere to certain restrictions:

• Must include the correct corporate identifier or an abbreviation of such
• Must not contain the terms bank, trust, trustee, insurer, insurance company, or any other term suggesting the issuing of policies of insurance.

Register Your Business

Every state has its own specific requirements for registering a business. Once you’ve chosen a business structure and picked your business name, check-in with your Los Angeles business law attorney to be sure that you comply with all the requirements to register your business in California.

Obtain A Federal Employer Identification Number (EIN)

Your business’s EIN is like a Social Security Number for your new company. A Federal Employer Identification Number is required for all Corporations and LLCs. An EIN is optional for a DBA, if your business does not have any employees. If the company does have employees, then a Federal Employer Identification Number is required. However, if you are a DBA without employees and don’t obtain an EIN, you will be required to use your own Social Security Number on many business documents. Your Los Angeles, California business law attorney will likely recommend you obtain an EIN to prevent identity theft.

Apply For Business Licenses And Permits

Once you’ve registered your business name in Los Angeles, CA, you or your business law attorney will need to obtain a business license for your company. This license authorizes your company to do business in your jurisdiction and will also involve registering for state taxes, and any permits the city requires.

Peter Bronstein is an Ivy League graduate and was a practicing attorney for over 28 years before founding Bizness Growth, which he created to protect small businesses and provide an all-in-one service to maximize their profit and success.

Entrepreneurial Role Models:

• Howard Schultz
• Bill Gates
• Mark Zuckerberg
• Sean Ellis

When Business Started Difficulties Overcame

“You don’t know what you don’t know. And so until you actually going to business you don’t have to deal necessarily with customers I mean you may deal with friends but you are not dealing with customers when you are not an entrepreneur or not a business but you have got to learn not… Read More

As a lawyer, I’ve represented many businesses but often found that small business owners make major mistakes that will leave them legally vulnerable. If big guys like Hertz can fall victim to business schemes, think about how much more vulnerable your tech startup or fledgling new eCommerce fashion site might be.

That’s why your first steps toward launching your new business are critical.

National Small Business Week is a good time to think about protecting what you’re building. So, whether you’re just starting to brainstorm a new business idea… Read More

On behalf of Peter C. Bronstein of The Law Office of Peter C. Bronstein posted in Intellectual Property on Friday, November 18, 2016.

The business courts of California have their fair share of intellectual property disputes. These may concern issues over copyright infringement, a trademark dispute, patent infringement, trade secrets or other related matters. An unusual trademark battle is occurring in another state right now, and it may go down to the wire before it is settled or decided by way of a jury trial.

A winery produced a wine that is called “What Exit Wine,” which borrows from the idea of the state’s exit signs that appear on the state turnpike that runs the length of the state. It designed the logo to look just like the actual exit signs that appear on the turnpike. When contacted by the state agency, the business asserted that it had a right to use the design as its logo despite that the state already had obtained a trademark to it.

The winery and the New Jersey Turnpike Authority have been going back and forth on the dispute for the past year. The small winery brought the matter to a determination by filing a declaratory judgment action against the state agency. Such an action requests the court to issue an order declaring essentially the legal rights and responsibilities of the parties.

The court will decide whether the winery has a right to design a logo that borrows themes and designs already incorporated into the highway exit sign. The business explains that it was using the theme to raise congenial talk among the state’s citizens. Presumably, they will talk cordially about their respective highway exit locations.

The plaintiff in this trademark dispute has argued to the court that the U.S. Patent and Trademark Office should not have approved the state’s application for a trademark for its road signs. It argues that the state turnpike laws prohibit the authority from engaging in an activity that has commercial and business undertones. It is difficult to say how the courts in California would decide a similar dispute, and it will be interesting to see how the courts decide to resolve this matter.