Corporate Law

  • March 2017

    Could Your Startup Be Paying Too High A Franchise Tax In Delaware?

    Each year, the thousands of business corporations that call Delaware home must pay what is known as an annual franchise tax. The tax is paid by every for-profit corporation incorporated in the state, whether they actually earn money there. Think of it as a license fee, paid for the right to exist as a Delaware corporation. The minimum any corporation will pay is $175, while the max is $180,000.
  • February 2017

    Phantom Stock: An Attractive Incentive With Some Potential Pitfalls

    Phantom stock can be a good alternative to issuing actual stock, allowing companies to compensate and incentivize key employees over the long term without giving up equity ownership. But there are some potential pitfalls, including tax and regulatory compliance traps, for the unwary.
  • February 2017

    When Commissioned Employees Are Entitled to Overtime In California

    Employment law in California is different from federal law and, in some respects, can more onerous for employers. One example is the so-called “commissioned employee” overtime exemption, which allows certain businesses to avoid paying overtime wages to some commissioned workers.
  • February 2017

    In California, Non-Voting Shares Aren't Always What They Seem

    Business owners often inquire about establishing voting and non-voting shares. The primary motivation is a desire to limit the number of people who will be able to influence business decisions. But in the case of California corporations, labeling a category of shares as non-voting doesn’t necessarily take away all the holder’s voting rights.
  • February 2017

    Delaware Court of Chancery Finds Supermajority Director Removal Bylaw Invalid

    The Delaware Court of Chancery recently invalidated a corporate bylaw provision requiring 66 ⅔ percent of the voting power of all the corporation’s outstanding shares to remove directors, finding it was inconsistent with the Delaware General Corporation Law (DGCL).
  • February 2017

    U-Haul Case A Reminder Not to use Unenforceable Non-Compete Clauses In California

    In a recent decision, a California appeals court upheld an award of more than $800,000 in attorneys' fees and a permanent injunction against U-Haul Co. of California that bars it from using a non-compete in its California dealer contracts.
  • January 2017

    House Passes HALOS Act to Address Demo Day Securities Law Issues

    On Jan. 10, 2017, the U.S. House of Representatives passed the Helping Angels Lead Our Startups Act (H.R. 79). The HALOS Act, as it is known, would require the U.S. Securities and Exchange Commission to make its prohibition against general solicitations inapplicable in certain circumstances.
  • January 2017

    CAFC Decision A Reminder Of Potential Issues With Intent-To-Use Trademark Applications

    Intent-to-use (ITU) trademark applications are trademark or service mark applications filed with the U.S. Patent and Trademark Office based on the applicant’s good faith intention to use the mark in commerce in the near future. Companies contemplating the acquisition of trademarks need to be careful with ITUs as there are some potential pitfalls, which were detailed here.
  • October 2015

    Cybersecurity: Legal and Practical Considerations

    Stradling litigation shareholder Marc Schneider, and Vice President of Legal Affairs at Cylance, Inc. Keith Palumbo, were featured in an Orange County Business Journal article about cybersecurity and the legal and practical considerations.

  • August 2015

    Innovation in Orange County

    Stradling shareholders Chris Ivey and Steve Hanle were interviewed along with Richard Sudek, UCI's Institute for Innovation, and Scott Kitcher, CleanTech OC, on innovation in Orange County and the opportunities and precautions it brings.