Your Business Deserves To Thrive
California will now require publicly traded companies headquartered in California to place women on their board. While I am a big supporter of women in business I think legislating quotas of how many women should be on a board is a bad move. There are very strong economic reasons to do put women in leaderships – but forcing it is…
So you are moving from California to Texas? What about existing business? In our experience, may people move their legal entity as part of a relocation. They just don’t want to be dealing with the old state any more. Existing Contracts. Obviously, the first issue is the XYZ, LLC, a California limited liability company is now XYZ, LLC, a Texas…
What does it look like to change States of Formation? Changing your state of formation can be a lot less painful than it used to be. Don’t worry – we’ll dive into some of the legal terms you are about to read in detail later in this blog. Conversion. In many cases a conversion can be done. Both the state…
So if you are considering moving your company from California to Texas, how is it done? Like most things it will probably be easier if broken down into steps. Step 1 – Where are you Legally Formed? The first step is to assess where things stand currently. Many business owners form a company in the state they start operations. So…
Numerous articles in the popular press have shown the demographic shifts and that a lot of people are moving from California to Texas.[1] Naturally some of the people moving into Texas are going to be business owners. While we don’t have the hard statistics, our hunch is that there are a lot of business owners that are part of the…
Texas. In Texas, as in many other states, a covenant not to compete is enforceable if: (i) it is ancillary to or part of an otherwise enforceable agreement at the time the agreement is made; (ii) it is reasonable as to time, geographic area, and scope of activity to be restrained; and (iii) the restraint imposed is no greater than…
New York: Sale of Business and Good Will Beyond the Label. In New York, non-competes used to be strongly disfavored by courts.[1] Over time, however, courts came to recognize that there are situations in which it was not only desirable but essential to enforce non-competes.[2] For example, in the context of a sale of a business along with its good…
Florida: Reasonableness Matters. In Florida, restrictive covenants are not prohibited, so long as they are reasonable in time, area, and line of business.[1] In the context of the sale of a business or professional practice, Florida courts generally presume reasonable if the restriction is less than three years in duration and unreasonable if more than seven years in duration. Additionally,…
California: It All Comes Down to Goodwill. Generally speaking, non-competes are void under California law.[1] Exceptions do exist. In the context of the sale of goodwill in a business, for example, the seller may agree not to compete with the buyer so long as the buyer carries on a like business.[2] This makes sense because it would be unfair for…
If your business employs skilled workers, or you have been one, you may be familiar with non-compete agreement, also known as covenant not to compete. For those who are less familiar with the subject, it is a contractual provision under which one party agrees not to compete in the same business, usually for a specific time period and/or in a…