TLD's General Counsel Blog

Training Alert – OSHA Compliance and Workers' Compensation

When: Wednesday, May 14, 2008
Time: 12:00-2:00
Light Lunch Provided – Please Arrive Early

Don't miss this one-time opportunity to hear Peter Riley of CALOSHA review tips for employers on how to reduce your liability as an employer and safeguard your workplace.

In addition, we will be reviewing the rules and regulations of First Aid Injuries versus Recordable Injuries and how you can reduce your costs by paying claims direct.

No Cost for Advisor clients. $49/all others.
This class will fill up so please rsvp early if you are planning to attend. Call or email Monica to reserve your seat.

Monica McMahon
HR Coordinator
HR NETwork, Inc.
Phone: 714.799.1115
Fax: 714. 898.2731
monica@hrnetworkinc.com
www.hrnetworkinc.com

Employers, Beware!

In this day and age of technology, circumstances in which employers are liable for the torts of their employees are growing exponentially. For example, as of July 1, 2008, all California drivers must use a hands-free apparatus when using a cell phone while driving. In addition to the fines for violating this law, employers should be wary of the potential civil liability.

Specifically, if a violation of this law contributes to an automobile accident, an employer may be held liable for damages sustained by the accident victim. A jury of 12 people who themselves have been delayed, cut off, or sideswiped by a technologically stimulated driver, will be more than happy to force the employer to share responsibility for the tragedy.

Article Submitted By: Attorney Annie Markarian

California Trust Administration Procedures Seminar

California Trust Administration Procedures seminar in Long Beach, CA on July 16, 2008. The seminar will be held at the The Westin Long Beach located at 333 East Ocean Boulevard.

Your professional advice and trust knowledge is essential to your clients - make sure you're giving them your best. Attend this innovative seminar and learn to juggle trust complexities while remaining focused on what really matters - your clients' needs. Discover ways to recognize the different levels of trust intricacy depending on the type - and value - of the assets involved. You'll learn valuable techniques to improve trust function for everyone involved, as well as tips on managing important legal, tax and family issues. Register today and reinforce your position as a top source for trust service.

This seminar is designed for attorneys, accountants, trust administrators, trust officers, bankers, enrolled agents, financial planners, presidents, vice presidents, paralegals, family office advisors and tax managers.

Two of TLD's prominent attorney's, Mark C. Doyle and Monica Goel, along with other knowledgeable individuals will be presenting at this seminar. Don't miss this opportunity to learn more about how to:

• Expertly handle clients' problems and concerns
• Navigate the relationship between taxation and trusts
• Become an expert on the administrative process
• Keep pace with recent litigation trends
• Avoid harmful mistakes in trust administration

To sign up for this seminar please follow the link below.
California Trust Administration Procedures Seminar Sign Up

Divorce by YouTube Probably Not The Way To Go

A recent news story involves the wife of a famous Broadway theatre owner going through a dissolution in New York. It seems she decided to get even with her husband by going on "YouTube" and airing their dirty laundry in a video for the whole wide world to see. Her name is Tricia Walsh-Smith and her clip has been viewed more than 150,000 times.

Any competent lawyer would advise against such a video for two reasons. First, in California, dissolution is no-fault, so the dirty laundry is not legally relevant and does nothing more than to escalate an already bad situation. Second, if the statements in the video are false, it may expose the spouse to damages in a separate defamation action. Although statements made in a lawsuit have some protection from liability, these statements were outside the courtroom, and had to do more with the personal relationship than what was happening in the legal proceedings. As a result, do not be surprised to see the estranged husband (Mr. Smith) at least threatening her with some sort of libel claim.

Article Submitted By: Attorney Daniel Gold

Tax Season Comes To A Close: One Way To Lower Tax Liability Of Your LLC.

Many businesses are beginning to understand the flexibility and usefulness of a limited liability company as a way to conduct business within California.  However, with tax season coming to a close, many successful business owners were stunned to discover the Gross Receipts tax levied upon California limited liability companies and foreign LLC's which register to do business in California.

The gross receipts tax is a state tax imposed upon LLC's conducting business in California.  The minimum gross receipts tax for an LLC is $800.  However, the gross receipts tax works on a graduated scale based upon the gross receipts of the company.  Once a company has gross receipts in excess of $250,000, the tax increases from $800 up to $11,970, depending on the level of gross receipts.

Tredway, Lumsdaine and Doyle partner, Mark C. Doyle, with the help of associate Brooke M. Pollard, recently helped an existing LLC convert to a California corporation pursuant to California Corporations Code section 1150 et. seq.  The existing LLC had increased its revenues over the past four years, and was paying in excess of $6,000 per year to the State of California under the gross receipts tax, exclusive of Federal and California income taxes.  By converting the existing LLC to a corporation, the business was able to save significant amounts of money and lower their annual tax liability. 

The conversion of an LLC to a corporation or a corporation to an LLC can have significant tax implications above and beyond the gross receipts tax.  These implications must be reviewed by both the attorney and CPA of the company to determine if this is in the business' best interest.  Please call us if you have any questions or would like additional information about either the gross receipts tax or the conversion of an LLC to a corporation. 

Article Submitted By: Attorney Brooke Pollard

Estate Planning and Small Business Owners

One important aspect for small business owners is to make sure that their estate plans are also put in place along with their appropriate business entities. If you own an interest in a Corporation (C or S corp), LLC or partnership, it is important to address what happens to that business interest should something happen to you or if you pass away.

A buy-sell agreement is one option (which won't be discussed here in this post) and setting up an estate plan is another option often considered. If you set up an estate plan to include a revocable living trust, you can assign or transfer your business interest into your trust and specify what happens to that share of the business interest.

One common approach for married couples is to transfer the business interest to the trust and allow the surviving spouse to manage the interest and upon the death of both spouses, the interest is then transferred to the surviving children either in equal shares or to the child who is most interested in the business interest (for whatever reason). Additonal lanugage can be included depending on the type of business interest involved and what your wishes are in case something happens.

Please consult with an estate planning attorney to determine if your business interest should be included as part of your personal estate planning. Tredway, Lumsdaine & Doyle has four estate planning attorneys to assist clients with these kinds of issues. One of our partners, Mark Doyle, is also a corporate and tax attorney who can provide additional insight and expertise in this area should you have a very successful small business in need of estate planning or other corporate work.

Article Submitted By: Attorney Jennifer Sawday

ARC Walk - ARC of Southeast Los Angeles County

A rowdy gang of 34 TL&D supporters showed- up to the ARC Walk on Saturday, April 5, 2008 to show our great support for ARC of Southeast Los Angeles County. TL&D also donated $2,500 to become a diamond sponsor of this special event.

Arc of Southeast Los Angeles County is committed to providing for people with mental retardation and other developmental disabilities the ability to form and work towards goals through training and education, based on their individual abilities. Arc of Southeast Los Angeles County is further committed to helping to reduce and limit the incidence and consequences of mental retardation through education research, advocacy and the support of families, friends and community.

Tredway, Lumsdaine & Doyle has supported ARC for many years through special events such as this, and by hiring people with developmental disabilities as support for the law firm. “Community service is important for any business, but its particularly important for lawyers,” said Joe Lumsdaine, senior partner for the firm, “Lawyers serve in a privileged position. They should be willing to support the community in return.”