Jul 292015

LLC General Requirements and Recommendations

(This is Part 5 of our LLC Series) The following are some general requirements and recommendations you should consider when operating an LLC: SIGNING ON BEHALF OF THE LLC Whenever the LLC managers or officers are signing agreements, documents, or correspondence on behalf of the LLC, care should be taken to include the LLC’s name in the […]

Jun 162015

Separation of LLC and Personal Assets

(This is Part 4 of our LLC Series) It is important for any company to respect the differences between the company’s bank accounts, property, equipment, and other assets and the personal assets owned by the company’s owners. An LLC, like a corporation or other legal “person,” is a separate legal entity with assets that are owned […]

May 262015

LLC Member Votes and Manager Actions

(This is Part 3 of our LLC Series) MEMBER VOTES Certain fundamental changes in the life of an LLC, such as a merger or liquidation of the LLC, require a vote by the members. These fundamental changes include the following: Amendment of the articles of organization (requires at least a majority vote of the members; […]

May 112015

The Roles of the Major Players in an LLC

(This is Part 2 of our LLC Series) The following is a brief description of the roles of the major players in an LLC — the members and the managers. Although the following is written as if members and managers are separate persons, the same individuals could serve as members and managers. MEMBERS The members own […]

Apr 122015

Introduction to Limited Liability Companies

The responses to my series on mechanics liens have been very positive. A large number of you have expressed that you find the information helpful and that it gives you a deeper and clearer understanding of the complex world of mechanics liens. Many of you have also asked that I do a similar series for other subjects, such as corporations and […]

Apr 32015

How is the Amount of a Mechanics Lien Calculated?

(This is Part 3 of our Mechanics Lien Series) The amount of a mechancis lien is limited to the reasonable value of the work provided by the claimant, or the price agreed to by the claimant and the person that contracted for the work, whichever is less. Moreover, a direct contractor or subcontractor may enforce a lien only […]

Feb 42015

Who is Entitled to a Mechanics Lien?

(This is Part 2 of our Mechanics Lien Series) Generally, any person who provides work authorized for a work of improvement or site improvement on real property is entitled to a mechanics lien, including, but not limited to:  Direct contractors;  Subcontractors:  Material suppliers;  Equipment lessors;  Laborers; and  Design professionals. The term “work” includes labor, services, […]

Jan 232015

What is a Mechanics Lien?

(This is Part 1 of our Mechanics Lien Series) When a contractor, subcontractor, material supplier, equipment lessor, laborer or design professional contributes to a private work of improvement and is not paid, one of its principal statutory remedies is a mechanics lien. A mechanics lien is an involuntary lien against the real property on which the claimant has provided […]

Jan 232015

Intro to Mechanics Lien Laws

An introduction to California Mechanics Lien Laws Mechanics liens are an extremely important and effective remedy for contractors, subcontractors, material suppliers and others in the construction industry. Often a mechanics lien will make the difference between being paid and not being paid for goods and services provided on a private work of improvement. However, the laws relating to mechanics liens […]

Aug 82014

Information on Assembly Bill 2235

Joe Cowan is a member of the California Building Industry Association (CBIA).  Assembly Bill 2235, a statewide school facilities bond, is an important piece of legislation that will greatly improve our schools and student academic performance. Dave Cogdill, President & CEO of the California Building Industry Association, sent a letter to all CBIA members today asking […]