Orange County Business Law Lawyers

What is a Benefit Corporation in California?

Law — Wed, 25 Jan 2012 18:21:37 +0000

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, other than Banking Law or Professional Corporation.

To form a Benefit Corporation, the Articles of Incorporation must include a statement with the following language, “This corporation is a benefit corporation.” Further, the Articles of Incorporation for a benefit corporation may identify one or more specific public benefits that shall be the purpose or purposes of the benefit corporation. The Articles of Incorporation must then be filed with the California Secretary of State and accompanied by a fee of $100.

For further information on business formations and more please contact the Costa Mesa Business Lawyers at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

What is a Flexible Purpose Corporation in California?

Law — Tue, 24 Jan 2012 22:40:29 +0000

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, customers and creditors, community and society and the environment.

To form a flexible purpose corporation, you must draft and submit Articles of Incorporation to the California Secretary of State. This form is similar to the one that you would fill out for a stock corporation that does not necessarily fit into the form available on the Secretary of State’s website. Therefore, it is important to contact a business law attorney in that the attorney will need to draft up Articles of Incorporation specific to your entity and purpose. The filing fee for the Articles of Incorporation is $100.

For further information on business formations and more please contact the Fullerton Attorneys at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

New Corporate Subtypes in California as of 2012

Law — Fri, 20 Jan 2012 17:44:22 +0000

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 past, a corporation could be formed either to pursue profitable endeavors or as a nonprofit corporation which must be operated solely to promote social and public benefit.

For further information on business formations and more please contact the Irvine Attorneys at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

How Do I Dissolve My Business Entity?

Law — Thu, 19 Jan 2012 19:09:22 +0000

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 law attorney if you have made the decision to dissolve your particular business entity.

For further information regarding dissolving business entities and more please contact the California Lawyers at 714-665-8322. Call today for you free 60-minute consultation!

Can my charity conduct a raffle?

Law — Wed, 18 Jan 2012 21:46:21 +0000

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 benefit or support beneficial purposes in California. Under Penal Code section 320.5, groups are prohibited from awarding raffle prizes through the use of a gaming machine such as a slot machine. Further, although a raffle may be advertised on the Internet, a raffle cannot be conducted over the Internet.

You may only conduct a raffle to raise funds for your charitable organization if you have been approved for tax-exempt status in California for at least one year before operating the raffle. Such eligible organizations include charities and religious or other organizations that have been exempted from state taxation by the Franchise Tax Board.

For further information on business formations and more please contact the Affordable Tustin Business Lawyers at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

How Do I Register as a Commercial Fundraiser?

Law — Tue, 17 Jan 2012 19:59:21 +0000

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 of Assignment form and the Receipt for Notice of Assignment form along with the original pass book or certificate of deposit indicating that $25,000 is held in the Attorney General’s name.

The Nonprofit Integrity Act of 2004 applies to all commercial fundraisers for charitable purposes who solicit charitable donations, including those who receive any funds, assets, or property as a result of a solicitation in California for charitable purposes, or who employ any compensated person to solicit, receive, or control funds, assets, or property for charitable purposes here.

What is a Commercial Coventurer?

Law — Mon, 16 Jan 2012 18:37:36 +0000

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 a charity with the funds they make when you purchase or use their goods, services, entertainment or any other thing of value.

For further information on business formations and more please contact the Top Irvine Lawyers at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

Do Charities Have to Pay an Annual Fee to Remain Registered with the California Attorney General’s Office?

Law — Fri, 13 Jan 2012 05:47:11 +0000

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 given year. It is very important to remain compliant with the Attorney General’s office and therefore you should contact a business law attorney to assist you in doing so.

It is important to conduct research regarding this matter if you are unclear on any aspect. For further information regarding registering your charity please contact the California attorneys at 714-665-8322. Call today for your free consultation!

Do I have to Register My Charity with the California Attorney General’s Office

Law — Tue, 10 Jan 2012 19:39:30 +0000

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, you must register it with the Attorney General. Further, you must file a form with this governmental body which is available on the Attorney General’s website.

If you have already registered your charity, you must also submit an annual Registration Renewal Fee Report along with a fee each year. Charities renewing their registration also must submit a copy of the IRS Form 990, if applicable.

For further information on business formations and more please contact the Orange County Attorneys of Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.

What if I received a notice from a Corporate Compliance entity asking to prepare annual minutes or file a Statement of Information for my business entity?

Law — Mon, 09 Jan 2012 19:26:03 +0000

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 prepare your annual minutes and/or prepare and file your Statement of Information with the California Secretary of State.

However, it is important to be aware that these services are not related to the California Secretary of State or any other government agency (as they sometimes claim). The language used in these solicitations can be tricky and confusing and the forms provided in the solicitations look extremely similar to those on the Secretary of State’s website. This is why it is important to contact a business law attorney who is familiar with these schemes and can assist you easily in determining whether a true communication from the Secretary of State is being sent to your entity or whether a private company is targeting your business as a form of revenue raising process.