Business Law

In California, you must provide a terminated employee's final paycheck, including all earned wages and accrued vacation, immediately at the time of termination. Failure to comply exposes you to signif...

To properly document an employee's performance issues, you must create a clear, factual, and consistent written record that establishes the problem, communicates expectations, and provides the employe...

California law requires you to provide paid sick leave to your employees and allow them to use it for specific health-related reasons. You must follow state rules for how leave is earned, used, and pa...

To legally operate your out-of-state LLC in California, you must register it as a "foreign" LLC with the California Secretary of State by filing an Application for Registration. This process does not ...

To legally run a contest or sweepstakes in California, you must provide clear rules and ensure any chance-based promotion does not require a purchase to enter, which would make it an illegal lottery. ...

While California law technically prohibits credit card surcharges, you can legally achieve a similar result by offering customers a discount for paying with cash or debit. Here is how to structure thi...

To use a "Made in USA" label in California, your product must be entirely or substantially made in the United States, with only a very small percentage of foreign content. Here is how to determine if ...

To add a new member to your California LLC, you must get approval from the existing members, formally document the change by amending your operating agreement, and update your records with the state. ...

To reinstate your suspended California LLC or corporation, you must resolve all outstanding compliance issues with the suspending agency and file a formal Application for Certificate of Revivor with t...

You can obtain a Certificate of Status from the California Secretary of State by submitting a request form either online, by mail, or in person with the required fee. This certificate confirms your bu...

Under California law, you must include specific legal notices in your website's footer, primarily a comprehensive Privacy Policy and, if applicable, a link to opt-out of data sales. Here is how to ens...

To properly issue an IRS Form 1099-NEC in California, you must collect the contractor's information, file the form with the IRS, send a copy to the contractor, and separately report the contractor to ...

To create a legally sound independent contractor agreement in California, you must first verify that the worker legally qualifies under the state's strict "ABC Test" or a specific statutory exemption....

To start a home-based business in California, you must verify your local zoning rules allow it and obtain the required permits, typically a Home Occupation Permit and a local business license. Here ar...

To legally start a cottage food operation (CFO) in California, you must register or obtain a permit from your local county health department and comply with state food safety and labeling laws. The ex...

To be prepared for a California tax audit, you must keep complete and accurate records that support all income, expenses, deductions, and credits claimed on your tax returns. California law requires y...

To pay quarterly estimated taxes in California for your sole proprietorship or single-member LLC, you must estimate your annual business profit, calculate the resulting personal income tax, and pay it...

If another California business is using your registered name, your first step is to formally demand they stop using it through a cease and desist letter after confirming your rights and gathering evid...

To apply for a California state trademark, you must complete and submit an application form with specimens of your mark and the required fee to the California Secretary of State. This registration pro...

You must pay the $800 annual minimum franchise tax directly to the California Franchise Tax Board (FTB) each year. This tax is due by the 15th day of the fourth month of your LLC's taxable year. Here...

You file your Statement of Information online through the California Secretary of State's bizfile Online portal. This filing is required annually for corporations and every two years for LLCs. Here i...

You should file a complaint against the licensed contractor with the California Contractors State License Board (CSLB). This is the state agency responsible for licensing and regulating contractors. ...

To file an unfair competition complaint against a business, you must submit a formal complaint form with supporting evidence to the California Attorney General's Public Inquiry Unit. This can be done ...

Upon receiving a formal cease and desist letter, do not ignore it, but also do not respond immediately or without legal guidance. Your first step should be to preserve all relevant evidence and contac...

To properly dissolve a California S-Corporation, you must file dissolution documents with the Secretary of State, cease business operations, pay all debts and taxes, and distribute remaining assets to...

To formally dissolve your California LLC, you must complete the winding-up process, satisfy your obligations with the Franchise Tax Board (FTB), and file a final cancellation document with the Secreta...

To collect on an unpaid invoice in California, you must first demand payment, then file a claim form with the correct local court, officially notify the person you are suing, and finally, present your...

In California, you must provide a final paycheck immediately if you fire an employee, but you have 72 hours if they quit without notice. Here is how to determine the exact deadline. Step 1: Determine...

On an employee's last day, California law requires you to provide their final paycheck along with several specific state-mandated notices. Failure to provide these documents on time can lead to signif...

To terminate an at-will employee in California, you must follow a structured process to ensure the termination is based on a lawful reason and that all final wage obligations are met immediately. This...

To secure workers' compensation insurance in California, you must purchase a policy from a licensed insurance company or the state's designated fund before you hire your first employee. The process in...

You must provide non-exempt employees with timely, uninterrupted, duty-free meal periods and paid rest breaks. Here is the correct procedure to follow to remain compliant with California law. Step 1:...

To properly calculate and pay overtime in California, you must determine the employee's "regular rate of pay" for the workweek, apply the correct overtime multiplier (1.5x or 2x), and include the paym...

California employers must display numerous state and federal posters covering wages, safety, and non-discrimination in a conspicuous location accessible to all employees. Here is how to ensure you are...

To correctly set up payroll in California, you must register as an employer with the Employment Development Department (EDD) and use the employee's state tax form (DE 4) to calculate and remit require...

Hiring your first employee in California requires you to complete several key registration, insurance, and reporting steps with both federal and state agencies. Here is the step-by-step procedure: S...

To correctly handle California sales tax, you must obtain a seller's permit, calculate the tax rate based on the delivery location, collect the tax from the customer, and remit it to the state on a se...

Before signing a California commercial lease, you must verify the written terms for rent, maintenance, use, and exit strategies, ensuring they match all verbal agreements and comply with state and loc...

To make your website compliant with California privacy law, you must determine if the law applies to you, inform consumers about your data practices, and provide them with methods to exercise their pr...

To create a legally enforceable simple service contract in California, you must clearly define the parties, the services, the payment terms, and obtain signatures showing agreement. Here are the essen...

Under California law, you must presume a worker is an employee unless you can prove their work meets a strict, three-part standard known as the "ABC test." Here is how to determine a worker's status:...

To properly file Articles of Incorporation in California, you need to prepare the Articles of Incorporation form, designate an agent for service of process, and submit the correct filing fee. Here is...

To convert your California sole proprietorship into an LLC, you must form a new LLC and formally transfer the assets and operations of your old business into it. California law does not provide a dire...

To reserve a corporate name in California, you must confirm the name is available and not misleading, then submit a formal reservation request to the California Secretary of State. This action holds t...

You can apply for a federal Employer Identification Number (EIN) for free directly from the IRS, most easily through their online application. Here is a step-by-step guide to the process. Step 1: Det...

Obtaining a Seller's Permit requires you to register your business with the California Department of Tax and Fee Administration (CDTFA) before you start making sales. The process is free and can typic...

To find your specific city or county business license requirements, you must contact your local city and county government offices directly or use the state's CalGold online portal. The exact permits ...

To form a California LLC, you must file Articles of Organization with the Secretary of State, create an operating agreement, and fulfill initial and ongoing state filing and tax requirements. Here are...

To register a Fictitious Business Name (DBA) for your sole proprietorship in California, you must file a statement with your county clerk, publish it in an approved local newspaper, and file proof of ...