California Business, Insurance And Environmental Law Blog

If you come to realize that a partnership is the best type of business for you, it's time to make a short list of candidates. Even if you have a clear idea of whom you want to go into business with, don't get too far ahead of yourself. This is a big decision that requires attention to detail.

There are several tips you can follow to ensure yourself of choosing the best business partner. This doesn't guarantee long-term success, but it definitely helps. Here are five tips to keep in mind:

• Try a trial period: Before you dive in head first, work together for a few weeks or months to get a better feel for each other. Maybe you find that you're a match made in heaven. Or maybe you come to realize that the person would not make a good partner.
• Search for someone with the same values: This doesn't mean you should find a partner who has all the same thoughts as you, but similar values will go a long way in making for a more sustainable relationship.
• Talk about responsibilities: You should never jump into a partnership before you clearly outline who is responsible for what. If you neglect to do so, leaving too much up for interpretation, it could result in disagreements in the future.
• Pick someone you enjoy spending time with: Yes, you have to be a match in regard to your approach to business, but you also want to select a partner you get along with in a personal sense.
• Create a contract: Even if you're best friends with someone, you should still have a contract that governs the partnership. Without this, any disagreement could turn into something much more serious than it needs to be.

California residents who follow the technology and communication sectors are likely aware that the telecommunication giants T-Mobile and Sprint have announced a proposed merger. Consumer rights groups have voiced concerns about the deal and the impact that it could have on wireless service costs, and the Federal Communications Commission said on Sept. 11 that it needs more time to review the merger to determine whether or not these arguments have merit.

The heads of both Sprint and T-Mobile are on record as saying that consumers would benefit if the two companies joined. They say that the merger would lead to lower prices for consumers and more competition in an area of crucial economic importance. The executives also claim that they need the deal in order to roll out the latest 5G wireless service.

As California businesses grow after their formation, they may find that they want to change their type of corporate registration. The Tax Cuts and Jobs Act, passed in December 2017, made it a profitable choice for many S corporations to become C corporations instead. The tax reform bill cut the highest tax rate for C corporations from 35 to 21 percent. In addition, pass-through businesses like S corporations also received a limited 20 percent tax deduction. In order to change from an S corporation to a C corporation, a majority of shareholders must consent to the change.

Different types of corporations may require different types of accounting. For example, some S corporations that become C corporations must change from an overall cash accounting to an overall accrual method of accounting. In the first six-year period after the change, the Internal Revenue Service said that it can handle the ensuing adjustments ratably during this time. The same is true for corporations that would be allowed to continue to use the cash method; if they switch to the accrual method, they can account the adjustment over the ensuing six years.

A group of California citizens has taken the state to court over the construction of a new bridge. The litigation over the enforcement of the state's environmental law could have an impact on businesses throughout the Golden State.

On Aug. 1, 2018, a nonprofit group filed a lawsuit against Caltrans, the California Department of Transportation, that asks the court to stop the state's planned removal of a historic bridge and the construction of a new span in Point Reyes Station until other options are considered. The lawsuit alleges that the state's plans violate both the California Environmental Quality Act, commonly known as CEQA, and federal environmental compliance law.