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FOREIGN BASED BUSINESS IN THE UNITED STATES
Mar 23, 2021

When starting a business in the United States it is important to understand federal and state business regulation. The United States follows a common law legal system where the federal constitution supersedes all other laws of the land. All states have their own respective laws, constitutions, and regional jurisdictions; this is conditional in that state regulations do not violate the federal constitution. It is beneficial to be well versed in the business laws of the respective states prior to investing.

Foreign investment in the United States is only restricted on investments in selected sectors including, but not limited to, defense contracting, banking, and mining. These sectors are typically reserved for United States citizens or entities. The most notable sectors for foreign direct investment (FDI) include wholesale trade, manufacturing, and real estate, accounting for hundreds of billions of U.S. dollars. Foreign employees and investors must obtain one of several visas that allow the individual to conduct business or seek employment in the United States. Once individuals become legal visa holder, they are permitted to work in the United States and will have to adapt the development of their business in accordance with their state’s legislature.

DELAWARE

Delaware has become well known for its business statutes which often attract foreign businesses searching for a state to launch their U.S. based venture. The procedure for creating a business in Delaware is efficient and simple, offering expedited processing of documents and electronic filing. To successfully start a business in Delaware, an entity must first file a Certificate of Incorporation with the Secretary of State of Delaware. A corporation in Delaware requires bylaws and meeting minutes of the board of directors – these do not have to be filed with the Secretary of State.

Other considerations when starting your Delaware based business:

  1. Share Capital: Delaware does not restrict a maximum share capital.
  2. Management Structure of the Corporation: Officers of the Board of Directors are responsible for managing the everyday operations of the corporation. Delaware does not have restrictions on foreign managers.
  3. Rights Associated with Shares: Restrictions can only be imposed by the Certificate of Incorporation, bylaws, or a shareholder’s agreement.
  4. Foreign Shareholders: There are no restriction on foreign shareholders except in specified sectors.
  5. Liability: A director of a corporation can be liable for any breach of fiduciary duties to the corporation and its shareholders.
  6. Reporting to the State: certificates of changes of name, registered office or agent must be declared with the Secretary of State.

CALIFORNIA

California is the one of the greatest recipients of FDI, along with New York and Texas, and offer foreign businesses a selection of forms, depending on the business structure, through the Secretary of State of California’s website (https://www.sos.ca.gov/business-programs/business-entities/forms). These forms must be filled out and filed with the Secretary of State of California and can be done so through the online filing service, by mail or in person, or through the new eForms Online Service.

In California, there are multiple steps to take to successfully start a business venture:

  1. Selecting a Business Structure:
    • Corporation: File a Statement and Designation by Foreign Corporation (Form S&DC–S/N [for foreign general stock or nonprofit corporations], Form S&DC-PC [for foreign professional law or accountancy corporations] or Form S&DC–INS [for foreign insurer corporations) and attach to the completed form a valid certificate of good standing by an authorized public official of the foreign jurisdiction under which the foreign corporation is incorporated.
    • Limited Liability Company: File an Application to Register (Form LLC–5) and attach to the completed form a valid certificate of good standing by an authorized public official of the foreign jurisdiction under which the foreign limited liability company is organized.
    • Limited Partnership: File an Application for Registration (Form LP–5) and attach to the completed form a valid certificate of good standing (or other record of similar import) by an authorized public official of the foreign jurisdiction under which the foreign limited partnership is organized.
    • Limited Liability Partnership: File an Application to Register a Limited Liability Partnership (Form LLP–1) and attach to the completed form a valid certificate of good standing (or other record of similar import) by an authorized public official of the foreign jurisdiction under which the foreign limited liability partnership is organized.
  2. Business Location: The California Business Investment Services unit of the Governor’s Office of Economic Development (GO-Biz) provides a site selection service for businesses, consultants, and real-estate investors. (https://business.ca.gov/calbis-sign-up/)
  3. Registration Process:
    • Check availability for business name under California rules.
    • File Articles of Incorporation with Secretary of State of California.
    • Meet/Create Board of Directors and develop company bylaws.
    • Retrieve your Federal Employer Identification Number (FEIN) and open a bank account for the new incorporation.
    • Retrieve the applicable business licenses from the city or county in which you will be conducting business.
    • Submit a Statement of Information within 90 days to the Secretary of State of California.

U.S. & STATE EMPLOYMENT LAW

Federal Employment Laws and Regulations

  1. Fair Labor Standards Act and the Occupational Safety and Health Act: these federal statutes regulate wages, child labor, and occupational health and safety.
  2. Title VII of the Civil Rights Act of 1964, including the Pregnancy Discrimination Act amendments; The Equal Pay Act; The Americans with Disabilities Act; The Age Discrimination in Employment Act of 1967; Genetic Information Nondiscrimination Act of 2008: these statutes prohibit the discrimination on the basis of, but not limited to, race or ethnicity, religion, sex, age, and disability.
  3. Employee Benefit Regulations: These federal laws regulate employee retirement plans, health benefits, availability of unpaid leave, job protection and insurance. These statutes include: Employee Retirement Income Security Act (ERISA); Consolidated Omnibus Budget Reform Act (COBRA), Family and Medical Leave Act.
  4. States may have statutory counterpart laws which can offer greater protection than federal regulations and should be assessed before starting your company in the United States.

 

JAHANGIRI LAW GROUP specializes in business, corporate, commercial, and real estate litigation and transactional law.  We are located in San Ramon, County of Contra Costa, California. We are open from 9:00 a.m. to 5 p.m., Monday to Friday. To make an appointment please call 925-574-0100.

By Lubna Jahangiri 09 Oct, 2023
By Lubna Jahangiri 03 Sep, 2023
When a Property May be Partitioned A partition action is a lawsuit in which a co-owner requests that the court divide the property or its sale proceeds. Three types of partition are: · Physical division of the property. (Code Civ. Proc. §§873.210 – 873.290.); · Sale of the property and division of the proceeds. (Code Civ. Proc. §§873.510 – 873.850.); and · Partition by appraisal under which any of the parties may acquire the interests of others at their value as assessed in a court-ordered appraisal. (Code Civ. Proc. §§ 873.910 – 873.980.) A partition proceeding is statutory in origin but it is one in which the trial court makes its ruling based on equitable considerations. Any partition must comply with any applicable laws, regulations, or ordinances governing the division of property. (Code Civ. Proc. §872.040). There is essentially only one basic requirement for a partition: That the property is co-owned. The only evidence that a plaintiff in a partition will need is evidence that they are a co-owner. The most common form of evidence of co-ownership is a deed recorded in the county recorder where the property is located identifying the grantee (transferee/buyer/recipient) as the co-owner. Regardless of whether your co-owner rented out the property, occupies it themselves, runs a business at the property, or the property suffers from some serious detriment, each co-owner has the right to a partition. The court in a partition will not weigh whether or not the partition seems “fair” for the parties. A co-owner of real property may file an action for partition, severing unity of possession in that property. This process is governed by Code Civ. Proc. §872.010, et seq. Accounting and Compensatory Adjustments The court may, in all cases, order allowance, accounting, contribution, or other compensatory adjustment among the parties according to the principles of equity. (Code Civ. Proc., §872.140.) The Court in Wallace v. Daley (1990) 220 Cal.App.3d 1028, 1036 states: “Every partition action includes a final accounting according to the principles of equity for both charges and credits upon each co-tenant’s interest. Credits include expenditures in excess of the co-tenant’s fractional share for necessary repairs, improvements that enhance the value of the property, taxes, payments of principal and interest on mortgages, and other liens, insurance for the common benefit, and protection and preservation of title.” Is the Cotenant Not In Possession Entitled to the Fair Rental Amount Each tenant in common has a right to occupy the property and one cannot collect rent from another who has exercised that right. (Nevarov v. Nevarov (1953) 117 Cal.App.2d 581, 585.) Generally, a claim for the implied rental value of exclusive possession by one co-owner depends upon a showing of actual ouster. “In order for a cotenant who is not in possession to recover the rents and profits, or the value of possession, from the cotenant in possession, they must establish that there has been an ouster….” (Estate of Hughes (1992) 5 Cal. App. 4th 1607, 1612.) An ouster, in the law of tenancy in common, is the wrongful dispossession or exclusion by one tenant of his cotenant or cotenants from the common property of which they are entitled to possession. The ouster must be proved by acts of an adverse character, such as claiming the whole for himself, denying the title of his companion, or refusing to permit him to enter. Actual or constructive possession of the ousted tenant in common at the time of the ouster is not necessary. (Zaslow v. Kroenert (1946) 29 Cal. 2d 541, 548.) Tenants in common have the right to occupy the subject property. (Brunscher v. Reagh (1958) 164 Cal.App.2d 174, 176.) When one tenant in common occupies the property, the out-of-possession cotenant is generally not entitled to recover the rental value of the property from the cotenant in possession. (Id. at pages 176–177.) Attorney’s Fees and Costs of Partition The court shall not apportion the costs of partition to any party that opposes the partition unless doing so is equitable and consistent with the purposes of this chapter. (Code Civ. Proc. §874.321.5) The costs of partition include reasonable attorney’s fees incurred or paid by a party for the common benefit. (Code Civ. Proc. §874.010.)  Code Civ. Proc. §874.040 states that the court shall apportion the costs of partition among the parties in proportion to their interests or make such other apportionment as may be equitable. JAHANGIRI LAW GROUP handles trials and appeals in the areas of business, corporate, commercial, and real estate litigation, and transactional law. We offer services in Urdu, Hindi, Punjabi and Spanish. We are located in San Ramon. We are open from 9:00 a.m. to 5:00 p.m., Monday to Friday. To make an appointment please call 925-574-0100.
By Lubna Jahangiri 23 Jun, 2023
An essential element of an enforceable contract is consideration. Consideration is any benefit conferred, or agreed to be conferred, upon the promisor [a person who makes a promise] by any other person, to which the promisor is not lawfully entitled, or any prejudice suffered, or agreed to be suffered, by such person, other than such as he is at the time of consent lawfully bound to suffer, as an inducement to the promisor, is a good consideration for a promise. (Civ. Code, § 1605)
04 Apr, 2023
Jahangiri Law Group is an engaging and a very busy business and real estate litigation firm and is seeking an attorney with 1 - 3 years of civil litigation experience.
By Lubna K. Jahangiri, Esq. 17 Jan, 2023
WRIT OF SUPERSEDEAS How to request a stay of a judgment or order issued by a trial court pending an appeal if you believe that, without a stay, you will suffer serious harm? Your opponent obtains a judgment or order in the trial court, and you appeal. Normally, the trial court order is not stayed automatically and by the time your appeal is decided, your opponent may have already enforced the judgment or order against you. This may result in severe prejudice to you if you ultimately prevail on your appeal and the judgment or order is overturned.  What is the Writ of Supersedeas? The writ of supersedeas is issued by appellate court to lower court, directing that enforcement of judgment be stayed pending appeal, when relief is necessary to protect appellant from serious injury in case of reversal, and will not cause respondent disproportionate injury in case of affirmance. [1] A petition for a writ of supersedeas is presented to the court of appeal to request that the court maintain the subject of the action in status quo until final determination of the appeal. Purpose of writ of supersedeas is to maintain status quo. [2] An appellate court may grant a writ of supersedeas when a denial of a stay of enforcement would deprive the appellant of the benefit of a reversal of the judgment against him or her, provided, of course, that a proper showing is made. [3] Appellate court has inherent power to issue process necessary to protect its appellate jurisdiction and to insure that rights of appellant will not be destroyed by mere passage of time necessary to prosecute appeal. [4] The writ of supersedeas has long been recognized to be an attribute of the inherent power of the courts to preserve their own jurisdiction. The power to issue the writ is implied from the power to hear appeals. [5] What is the Process of Applying for a Writ of Supersedeas? Stay proceedings may be initiated by filing a petition for writ of supersedeas in the court of appeal. [6] Appellant prepares, serves, and files a verified petition for writ of supersedeas with the court of appeal in which the appeal is pending. [7] The petition bears the same title as the appeal and contains a statement of the necessity for the writ and supporting memorandum. [8] The cover must bear the conspicuous notation "STAY REQUESTED," and identify the nature and date of the proceeding or act sought to be stayed. [9] The writ will not issue until respondent has had an opportunity to file a memorandum and a statement of any material facts in opposition. Unless otherwise ordered, any opposition must be filed within 15 days after the petition and supporting points and authorities are filed. [10] If the record on appeal has not yet been filed in the court of appeal, the petition must contain a copy of the judgment, the date of its entry, the fact and date of filing of the notice of appeal, and a statement of the subject matter of the appeal sufficient to advise the reviewing court of the question involved. [11] Issuance of writ of supersedeas is precluded if appeal is no longer pending and judgment has become final. [12] Under What Conditions is a Writ of Supersedeas Issued? Appellate courts may grant supersedeas when the denial of a stay would deprive appellant of benefit of a reversal of judgment. [13] An appellate court may issue a writ of supersedeas on any conditions that that court deems just or appropriate under the circumstances. [14] The most common condition imposed on granting a writ of supersedeas is that an undertaking be filed, and the practice is to require approval of the sufficiency of the bond by the presiding judge of the lower court. [15] As a practical matter, it is very difficult to obtain a writ of supersedeas and they are rarely granted. At a minimum, you must be able to demonstrate that you cannot afford a bond, that the issues in the appeal are significant, and that there is a strong likelihood of obtaining a reversal. JAHANGIRI LAW GROUP handles appeals in the areas of business, corporate, commercial, and real estate litigation, and transactional law. We offer services in Urdu, Hindi, Punjabi and Spanish. We are located in San Ramon. We are open from 9:00 a.m. to 5:00 p.m., Monday to Friday. To make an appointment please call 925-574-0100. [1] California Table Grape Com. v. Dispoto (1971) 14 Cal. App. 3d 314, 316 [2] Dry Cleaners & Dyers Institute v. Reiss (1936) 5 Cal. 2d 306, 310 ; Sacramento Newspaper Guild v. Sacramento County Bd. of Supervisors (1967) 255 Cal. App. 2d 51, 53 [3] Deepwell Homeowners' Protective Asso. v. City Council of Palm Springs (1965) 239 Cal. App. 2d 63, 65-66 [4] Adoption of Pierce (1970) 5 Cal. App. 3d 316, 320 [5] People ex rel. S. F. Bay etc. Com. v. Town of Emeryville (1968) 69 Cal. 2d 533, 538 [6] Cal. Rules of Ct., Rule 8.112 [7] Cal. Rules of Ct., Rule 8.112 [8] Cal. Rules of Ct., Rule 8.112 [9] Cal. Rules of Ct., Rules 8.40(c) , 8.116 [10] Cal. Rules of Ct., Rule 8.112 [11] Cal. Rules of Ct., Rules 8.40(c) , 8.112 [12] In re Christy L. (1986) 187 Cal. App. 3d 753, 758-759, 232 Cal. Rptr. 184 [13] People ex rel. S. F. Bay etc. Com. v. Town of Emeryville (1968) 69 Cal. 2d 533, 537 ; Deepwell Homeowners' Protective Asso. v. City Council of Palm Springs (1965) 239 Cal. App. 2d 63, 65-66 [14] Kane v. Superior Court (1995) 37 Cal. App. 4th 1577, 1587 n. 6 [15] Sandell, Inc. v. Bailey (1961) 193 Cal. App. 2d 518, 520
By Lubna K. Jahangiri, Esq. and Bernard Nellari, Legal Intern Co-Authors 16 Jan, 2023
An expert witness is a witness permitted to testify during a trial because of their proficiency or special knowledge in a field relevant to the case. According to California Evidence Code §720, a person is qualified to testify as an expert if he has special knowledge, skill, experience, training, or education sufficient to qualify him as an expert on the subject of his testimony. Expert witnesses are used to simplify complex topics that are relevant to a case. In practice, categories of expert witnesses have included medical experts, forensic experts, financial experts, mental health experts, securities experts, and many more. Expert witnesses must provide independent, impartial, and unbiased evidence to the court using their expertise. During a trial, experts may be called to testify whether the evidence supports testimony from other witnesses. Experts can also opine on the accuracy of certain statements made during the trial. However, expert testimony can be excluded in certain situations. Expert testimony will be excluded when the subject of inquiry is one of such common knowledge that individuals of ordinary education could reach a conclusion as intelligently as the expert witness. Furthermore, the trial court may exclude expert opinion testimony that is (1) based on matter of a type on which an expert may not reasonably rely, (2) based on reasons unsupported by the material on which the expert relies, or (3) speculative. JAHANGIRI LAW GROUP specializes in business, corporate, commercial, and real estate litigation, and transactional law. We offer services in Urdu, Hindi, Punjabi and Spanish. We are located in San Ramon. We are open from 9:00 a.m. to 5:00 p.m., Monday to Friday. To make an appointment please call 925-574-0100. References: - Thus, expert testimony will be excluded when the subject of inquiry is one of such common knowledge that men of ordinary education could reach a conclusion as intelligently as the expert witness, as held in Burton v. Sanner (2012) 207 Cal.App.4th 12, 19. - Evidence Code §801(b) and §802 - Evidence Code §801(a) holds that expert witness testimony must relate to a subject that is sufficiently beyond common experience that the opinion of an expert would assist the trier of fact. California Evidence Code §720
01 Dec, 2022
Congratulations to this year’s recipients. Thank you for your contributions to our community. JLG is a proud member of the Chamber and believes that through community, small businesses will thrive. Are you a member?
By Lubna K. Jahangiri, Esq. and Bernard Nellari, Legal Intern Co-Authors 29 Sep, 2022
Statute of Frauds is a common law doctrine that requires certain types of contracts to be in writing to be enforceable. The Statute of Frauds is satisfied if the contract is evidenced by a writing or writings, contains the essential terms of a contract, is signed by the relevant parties against whom the contract is to be enforced, and has enough information to evidence the parties' intent to enter into a contract. As applied in California, the statute generally requires the following types of contracts to be in writing to be legally binding: Contracts that cannot be completed in less than one year. Contracts for the sale of land. Contracts for the sale of goods above a specific dollar amount, typically $500. A contract in which one person promises to pay another person’s debt. To satisfy the requirement of the Statute it is not necessary that the writing be in the form of a formal contract, as long as it contains the material terms. The Statute of Frauds applies only to breach of a contract claims when assessing the validity and enforceability of the contract. It does not apply to any other causes of action. However, in some situations, unwritten agreements that would ordinarily require a written contract under the Statute of Frauds may still be enforceable. One exception to the Statute of Frauds is partial performance. For example, if there is no written contract but the buyer in the alleged contract has paid any portion of the sale price, has begun to permanently improve the land, or has taken possession of the land, the courts will consider the contract partially performed, and this partial performance will amount to proof of the contract. JAHANGIRI LAW GROUP specializes in business, corporate, commercial, and real estate litigation, and transactional law. We offer services in Urdu, Hindi, Punjabi and Spanish. We are located in San Ramon. We are open from 9:00 a.m. to 5:00 p.m., Monday to Friday. To make an appointment please call 925-574-0100 . 
By Lubna K. Jahangiri, Esq. and Jessica Daniel, Legal Intern Co-Authors 09 Dec, 2021
A complaint is one of the most important documents in civil procedure. Complaints are served by summons and defendants must respond to the complaint.
By Lubna K. Jahangiri, Esq. and Jessica Daniel, Legal Intern Co-Authors 08 Oct, 2021
Strategic Lawsuits Against Public Participation (SLAPP) are becoming an increasingly popular tool used by individuals or corporations to intimidate or censor.
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