Business Law FAQs

Fox, Shjeflo, Hartley & Babu LLP provides clients with experienced representation in all business matters, including entity formation, transactional matters and litigation representation. If you need an experienced business law attorney, contact Fox, Shjeflo, Hartley & Babu LLP for a consultation. For more information on the firm's business law practice, visit our business law page. For answers to some frequently asked business law questions, read below.

What should I consider when deciding which business entity is best for my business?

California recognizes a wide range of business entities, including corporations, general partnerships, limited liability companies (LLC), limited partnerships (LP), and professional corporations (PC). Among the most popular entities are corporations and LLCs, in which the owners are shielded from personal liability -- LLCs have become increasingly popular because they tend to have less complicated structures and tax responsibilities. Every business venture has unique interests to consider, and deciding which type of entity to form can be a complex matter, requiring assistance from an experienced business attorney. With thorough legal advice and information, business owners can get off to an efficient, cost-effective start and focus on growing their business.

If I file for bankruptcy, will I lose my business?

Businesses can typically file for Chapter 7 liquidation bankruptcy or Chapter 11 reorganization bankruptcy. Whether your business can survive a bankruptcy filing depends on the types of debt you have incurred and the remaining financial strength of your business. Chapter 7 will normally result in your business ceasing operations, but can help mitigate the financial impact of your outstanding debt. Chapter 11 filing provides an avenue for you to continue business operations and attempt to regain a profitable business model while restructuring your payment plans to creditors.

I own a small business and cannot afford in-house legal counsel. How do I defend myself if I am sued?

No matter how careful and thorough you are in negotiating your business contracts and managing your business, there are situations where litigation is unavoidable. In large companies, in-house legal departments are often responsible for handling the company's transactional matters, but will often rely on outside legal counsel in the event a business dispute results in litigation, since only an experienced business litigator can handle the complexities of such a case.

Our clients rely on our attorneys' ability to successfully handle transactional matters as well as provide exceptional representation in the event of litigation. Unlike many in-house legal departments, the attorneys at Fox, Shjeflo, Hartley & Babu LLP offer a wealth of trial experience essential to resolving disputes and minimizing the impact of disputes on business operations.