The Lovell FirmBusiness Lawyer Los Angeles California | The Lovell Firm2026-07-23T16:26:31Zhttps://www.lovellfirm.com/feed/atom/WordPress/wp-content/uploads/sites/1504753/2025/10/cropped-favicon-lovell512-32x32.jpgOn Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Choosing a business structure for your new venture]]>https://www.lovellfirm.com/?p=496472026-06-02T16:31:10Z2026-07-23T16:26:31ZHow is a sole proprietorship different than a corporation?
A sole proprietorship is the most popular and simplest type of business organization. It is owned and operated by a single person, who makes all the business decisions and receives all the profits.
Still, a sole proprietorship also comes with some risk. The owner is responsible for any debts or legal actions against the business. There is no distinction between the owner's personal and business assets; therefore, their home or savings may be used to meet business obligations.
Conversely, a corporation is a more complex business structure. It exists as a separate legal entity with shareholders instead of owners. This separation provides limited liability, meaning that personal assets have more protection from business debts and lawsuits.
However, corporations face more regulations, such as those set forth by the Corporate Transparency Act. In addition, they are subject to double taxation, meaning income is taxed at the corporate and shareholder levels.
Registering your business as a limited liability company (LLC) is a third option. This type of business formation offers the flexibility of a sole proprietorship but provides the limited liability protection of a corporation. Owners are known as members and have the benefit of personal asset protection. LLCs also offer pass-through taxation, which allows the members to report profits and losses on their individual tax returns and avoid the double taxation associated with corporations.
Before deciding on a business structure, it's essential that you review the pros and cons with someone who understands business formation. They can guide you in choosing the best option for your new venture.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[How to choose a compatible business partner]]>https://www.lovellfirm.com/?p=496562026-06-02T16:17:44Z2026-07-18T16:12:52ZWhether you are just starting up your new business or you have reached the point of expansion, you may want to take on a business partner. But before you ask your ask your best friend or sister-in-law to take on that role, consider what traits are most desirable in a business partner.
While there is nothing inherently wrong with choosing a good friend, relative or in-law, those people may not be the best choices. Below are some tips for choosing a good business partner.
They’re reliable — and trustworthy
You think you know someone really well, and then they go and do something that goes against all that you stand for. While there is no way to protect yourself completely against a dishonest business partner, consider any past incidents that might have seemed minor — cheating at a friendly poker game, filling out fake rebates — anything that would indicate they are less than 100% honest.
You have different but compatible skills
If you’re the gregarious type who could sell ice in a snowstorm, you might want to consider a partner who is content to be in the background balancing the books and paying the taxes on time.
They’re financially sound
Choosing someone who is fiscally responsible and not overloaded with debt removes any temptation for them to dip into the till. It also shows that their money management skills are sufficient to run the financial aspects of your company.
You share a vision and passion
Both of you should share a similar vision for the business and have the passion (and time) to see it through to fruition. You don’t need to be in lockstep on all aspects, as it can be good to bounce different ideas off one another. But you should both be inspired and excited to promote your new company.
Learn all you can before you begin
When you decide to take on a business partner, it’s always prudent to gather all the information you need before making any decisions.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Influencers claim companies steal their content ]]>https://www.lovellfirm.com/?p=496662026-06-02T16:05:12Z2026-07-13T16:04:04ZCreators and influencers on social media often produce user-generated content (UGC). This may include videos, pictures, written posts and more.
However, many influencers claim that brands are using their content without first obtaining permission. One study found that approximately 50% of creators have made this claim. This is a significant issue, not only for the creators but also for the brands accused of improperly using the content.
An underrecognized problem
According to the report, many believe the extent of intellectual property theft is underrecognized by the general public. This theft can damage a brand’s reputation, making consumers less likely to purchase their products in the future. However, if consumers are unaware that the content has been used without permission, they may simply assume that the companies have taken the proper legal steps. As these reports show, that assumption is often incorrect.Not only do creators say their own content had been stolen, but 40% report knowing others who had experienced the same issue. Even for those who haven’t directly encountered intellectual property theft, it’s clear that it’s a common problem.Content creators frequently reach out to brands when they discover their content has been used without permission. Despite this, about 50% of creators claim they never received a response. While many said the content was eventually removed, significant delays meant that brands had already benefited from using the unpaid content.
Addressing the issue
The ease with which the internet allows digital content to be taken without permission has created numerous legal challenges, such as those detailed above. Creators who experience intellectual property theft must understand their legal rights and explore all available options to protect their work.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[How does a limited liability company benefit business owners?]]>https://www.lovellfirm.com/?p=496922026-06-02T15:58:10Z2026-07-10T15:57:51ZOne of the primary decisions that a business owner has to make is deciding what type of business structure to use for the company. Sole proprietorships, limited liability companies (LLCs) and corporations are three of the common structures some business owners use.
The LLC is one of the more common options for new small businesses because of the ease of establishing the LLC and the dividing line between the company and the owner.
Division between owner and business
One of the key benefits of an LLC is that it provides limited liability protection. This means that the personal assets of the owner are generally protected from business debts and lawsuits. If the LLC faces financial trouble or legal claims, creditors typically can’t pursue the personal savings, homes or other assets of the owner as long as there’s no fraud and the finances of the business and owner are separated.
Pass through taxation
By default, profits and losses pass through to the owner’s personal tax returns, avoiding double taxation. This is known as pass-through taxation. Alternatively, an LLC can elect to be taxed as an S corporation or C corporation, depending on the business’s financial goals.
Ease of operation and management
Unlike corporations, LLCs have fewer formal requirements. There is no need for a board of directors, shareholder meetings or complex record-keeping. Instead, owners can manage the business themselves or appoint managers to handle daily operations. This flexibility makes LLCs an attractive option for entrepreneurs who want a simpler business structure.Once the business structure is chosen, the business owner can move forward with other aspects of opening the business. Ensuring they have the assistance of someone familiar with these matters may be beneficial. ]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Can social media comments be defamation?]]>https://www.lovellfirm.com/?p=496992026-03-10T20:58:56Z2026-07-06T20:58:42ZSocial media helps businesses connect with customers. However, it can also expose companies to harmful comments. Can critical online statements become defamation under California law?
The short answer is yes, social media posts can sometimes cross the line into defamation, creating serious legal issues for businesses. However, this is not always the case, and context is crucial. Below are some important points to remember.
When does an online comment become defamation?
Under California law, defamation is a false statement presented as fact. To qualify as defamation against a business, the statement must:
Be false and factual, not merely opinion
Be published publicly (on Facebook, Yelp, Instagram, etc.)
Cause real harm to the business's reputation or income
It's important to know that negative opinions are not defamation. The comment must specifically claim false information that damages the business.
Examples of defamatory comments
An example of defamation would be if a person posts on Instagram claiming a local restaurant has a rat infestation. If that claim is false, it can seriously harm the restaurant’s reputation and reduce business and would likely qualify as defamation.However, a comment like “The food really wasn’t great” expresses personal opinion. Even if negative, this type of comment generally doesn't meet California's standard for defamation.
How businesses can respond
Businesses that believe they've been defamed on social media should:
Take screenshots to document the harmful posts
Ask the person who posted or the platform itself to remove the false statement
Explore legal options if the comment is not removed
In California, businesses have one year from the date of publication to file a defamation claim. Waiting too long could cost the business its opportunity to take legal action.If you believe that your business has been defamed, you do have options to protect your reputation. Seeking legal guidance will help you learn more about defamation laws in California. ]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Does federal minimum wage matter?]]>https://www.lovellfirm.com/?p=496982025-03-24T12:27:29Z2026-06-29T20:59:30ZYou often hear people talk about how the minimum wage has not increased in over a decade. They will often point to the massive increases in living costs, such as the inflation of the housing market. Meanwhile, wages have remained largely stagnant.
When someone says this, they are referring to the federal minimum wage. This was last updated on July 24, 2009—nearly 16 years ago. That’s when the federal minimum wage was set at $7.25 per hour, where it still stands today.
California has its own minimum wage
However, states can also set their own minimum wages. If a state doesn’t have a minimum wage, then employers must pay at least the federally mandated $7.25 per hour. But if the state does have a higher minimum wage, then employers must follow the higher state standard.In California, the statewide minimum wage is currently $16.50 per hour. This means that, for the vast majority of hourly employees, it would still be illegal for them to be paid $7.25 per hour. Since California’s minimum wage is higher, that’s the standard employers in the state must follow.
Minimum wage disputes
This difference between federal and state wages can sometimes lead to disputes. For instance, if your employer is paying you below the California minimum wage, they may claim that they are following federal law and that $7.25 per hour is allowed. This could be due to a misunderstanding of labor laws—or a deliberate attempt to underpay workers.If you believe your employer is violating minimum wage laws, it’s important to know what legal steps you can take to recover the wages you’re owed.]]>On Behalf of The Lovell Firm<![CDATA[AI in California Business Litigation: Risks & Opportunities ]]>https://www.lovellfirm.com/?p=501822026-06-18T13:10:34Z2026-06-23T13:09:20ZArtificial intelligence changes California business lawsuits at a fast pace because these tools alter how firms handle trade fights this year. Executives must adapt to this tech shift now if they want to protect their firm in a changing market.
Work Speed and Data Storage
Companies deploy AI software to analyze business plans and organize massive files during their daily work. This tech tracks supply chains and flags contract issues before formal legal fights ever arise in the workplace. Businesses gain a clear market edge with automated audit tools that speed up data gathering before a lawsuit occurs.
Big Risks and Legal Troubles
Autonomous AI tools create immense financial risk when they sign bad deals or make system errors. California law holds the business fully responsible for these automated mistakes even without human review. State courts now order companies to hand over their AI prompts and data logs during digital discovery actions. Training software on private data also triggers trade secret theft and unfair competition claims under state rules.
Steps to Protect Your Corporate Assets
Smart business owners must actively protect their companies from these new AI risks through early planning. You should not wait for a big lawsuit to expose your firm's blind spots before taking safety steps.
Draft tight contracts that clearly assign blame for autonomous system errors.
Secure proactive IP protections for your private data sets.
Review automated business practices to prevent fraud and unfair competition claims.
Recent California privacy rules demand total clarity regarding automated tools to prevent state legal actions.
Understanding the High-Stakes Tech Battle
Federal trends and state privacy rules shift rapidly so leaders need a seasoned advocate in their corner. A sharp trial lawyer builds the necessary leverage during hard case talks to protect daily work. This smart guidance keeps your business safe while you pursue your main goals.
]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[Signs a rival is trying to copy your brand]]>https://www.lovellfirm.com/?p=496952026-03-10T21:36:13Z2026-06-16T21:08:59Zprotect your business?
Similar branding and marketing
If a competitor uses a logo, colors or slogans that look like yours, they may be trying to confuse customers. Keep an eye out for ads, social media posts or packaging that resemble your brand. If customers mistake their business for yours, it’s a clear sign of copying.
Copying products or services
A competitor might offer nearly identical products and services. While some similarities are natural in any industry, direct copying, especially of unique names, designs or features, could violate your intellectual property rights.
Imitating your online presence
Copycats often mirror your website and social media posts. If a rival starts using similar wording, blog topics or ad strategies, they may be trying to hijack your company’s success. If they go so far as to copy your online branding, there are legal steps you can take.
How to protect your intellectual property
Below are some important steps you can take to protect your brand:
Register your trademarks: Protect your brand name, logo and slogans legally.
Monitor for infringement: Regularly check for copycats online and in your industry.
Send a cease-and-desist letter: If you spot a violation, a legal notice may stop further copying.
Protecting the brand you worked so hard to build cannot be overlooked. Seeking legal guidance will give you more information on intellectual property protection methods.]]>On Behalf of The Lovell Firm, A Professional Law Corporation<![CDATA[How misclassification robs California workers]]>https://www.lovellfirm.com/?p=496962026-03-10T21:08:19Z2026-06-14T21:08:00ZWith direct deposit, many of us rarely look at our paystub. We assume we’ve been paid minus any taxes and deductions for the hours we’ve worked.
But what if that’s not true? What if your employer has misclassified you as an independent contractor? In that case, you may be losing out on thousands of dollars each year.
The billion-dollar problem
Every year, millions of workers across the country are misclassified as independent contractors instead of employees. Approximately 10-30% ofemployers misclassify their employees, either intentionally or accidentally. This practice harms the employees and causes the United States government to miss out on billions of dollars in tax revenue.How are employees and independent contractors different? The independent contractor, also known as a gig worker, is often hired to complete a particular task. They are self-employed, meaning labor laws don’t protect them regarding minimum wage, overtime pay and paid time off. They also don’t receive any benefits, such as health insurance or a 401(k). In addition, they are required to pay both the employee and employer portion of Social Security and Medicare taxes.On the other hand, employees are paid a regular salary, including time and a half for overtime pay. They are protected by the California Department of Industrial Relations, which ensures all employees receive the minimum wage. The employer also withholds income taxes, Social Security and Medicare taxes from the employees’ paychecks and contributes to these taxes on behalf of the employees. The employee is also covered by workers’ compensation, meaning if they are hurt on the job, their medical expenses will be covered and they will receive a portion of their lost wages while they recover. While employee misclassification can occur in any industry, unethical employers target vulnerable populations, such as young workers, undocumented immigrants, migrant and seasonal workers and people who work in low-paying manual labor jobs.We must look out for vulnerable individuals whom employers may exploit. If you are being misclassified as an independent contractor, or know someone who is, you need to reach out to someone who can review your case and help you receive the compensation you earned.
]]>On Behalf of The Lovell Firm<![CDATA[The complexities of discovery during business litigation]]>https://www.lovellfirm.com/?p=501812026-06-24T09:29:46Z2026-06-08T21:54:07ZWhat are the most common discovery challenges?
There are three main issues that complicate the civil discovery process in a complex business lawsuit scenario. The first is identifying the information to request from the other party.
Each party in the lawsuit can theoretically request numerous documents from the other, ranging from electronic communications to contracts. Working with an experienced business law attorney can help ensure that the documentation requested during the discovery process is appropriate and likely to provide the information necessary to proceed with the lawsuit.
The second challenge relates to fulfilling the other party’s discovery requests. In some cases, asking the courts to set aside certain requests because the information is outside of the scope of litigation or could damage the company's competitive advantages may be part of the process.
Partially redacting certain information before providing discovery materials to the other party may also be part of the process. Especially when releasing hundreds of pages of business records, that process can require a major commitment of manpower.
Finally, the assessment of the discovery materials can be a profound challenge. Frequently, contracts and business records can add up to hundreds of pages of information, and tiny details contained within those documents could make or break the legal case. The process of reviewing discovery materials can require weeks of effort before the case goes to trial.
Working with a business litigation attorney familiar with complex discovery proceedings can help take some of the risk and frustration out of the discovery process. Effective legal guidance can help during every stage of discovery and throughout business litigation in general.]]>