Blog

A Benefit Corporation is one in which the purpose of the business is to create a benefit to the general public. This purpose is in addition to the purposes provided in Section 206 of the Corporations Code. Under that particular section, a corporation can be formed to serve any business activity not prohibited by law, [...]

  A Flexible Purpose Corporation is one in which the purpose of the business includes either (1) one or more charitable or public purpose activities that a nonprofit public benefit corporation is authorized to carry out; or (2) promoting positive or minimizing adverse short-term or long-term effects of, the corporation’s activities in its employees, suppliers, [...]

Beginning on January 1, 2012, you can form a stock corporation (for profit) under two new subtypes in California. Such subtypes include a “flexible purpose corporation” and a “benefit corporation.” These new corporation subtypes allow you to organize your stock corporation so that it can pursue both economic as well as social objectives. In the [...]

In order to dissolve your business entity (whether foreign or domestic) in California, a form specific to your particular entity must be filed with the California Secretary of State. Because the California Secretary of State due to mistake, omissions and other common errors rejects many dissolution attempts, it is essential that you contact a business [...]

A raffle is a type of lottery where prizes are awarded to individuals who enter to win something of value. This is a game of chance in which a coupon or a stub is purchased. At least 90 percent of the gross receipts from raffle ticket sales must be used by eligible tax-exempt organization to [...]

To register as a commercial fundraiser, you must complete and sign a Registration Form with the Attorney General’s office and pay a fee of $350. Further, you must submit the original of a properly executed $25,000 surety bond in your name. However, if you are unable to obtain this bond, you may submit the Deposit [...]

A commercial coventurer is a person or corporation that is regularly and primarily engaged in trade or commerce, for profit, other than in connection with the raising of funds, assets, or property for charitable organizations or charitable purposes. This is a person or corporation who makes representations to the public indicating that they will benefit [...]

An annual fee must be paid to the Attorney General’s office every year in which your charity is operating if the gross revenue of your charity amounts to $25,000 or more. The fee is based on a sliding scale and varies from $25 to $300 determined by looking to the charity’s gross revenue in that [...]

As of January 1, 2005, the California Attorney General requires that you register your charity within 30 days after you receive assets. Registration requires that you provide the Attorney General’s office with your Articles of Incorporation and bylaws. There is also a fee of $25.  Regardless of your charities revenue, if you operate a charity, [...]

Over the last few years, it has come to the attention of business lawyers as well as the California Secretary of State that private companies have been trying (and sometimes successfully) soliciting business through mass mailings to new business owners. These solicitation services have been known to demand you contact them so that they can [...]