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  • Post U.S. Tax Reform, What Corporate Structure is Right for You?

    By Procopio Of Counsel David C. Boatwright, Partner Pedro E. Corona de la Fuente, Partner Eric D. Swenson, and Associate L. Reza Wrathall Given a range of changes made to the Internal Revenue Code by the Tax Cuts and Jobs Act of 2017—which we’ll call the “Tax Act” for short—many privately held businesses are reconsidering their current corporate structure. The new law enacted a number of substantial changes, leading CEOs and in-house counsel to wonder whether it is more advantag...

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  • Nueva Obligación de Presentar la Forma 5472 para LLCs que Tengan un Sólo Socio Extranjero

    Por. Pedro E. Corona & Luis A. Zendejas El 13 de diciembre de 2016, fueron emitidos nuevos reglamentos para las Secciones 6038A y 7701 del IRC.  Estos nuevos reglamentos son aplicables a partir del ejercicio 2017,  y dan el tratamiento de corporación de los EUA aquellas LLCs que tienen un sólo socio que no es residente fiscal de los EUA, por lo que dichas LLCs deben presentar la Forma 5472. 1. ¿En qué consiste la nueva obligación para LLCs? Una LLC que sea ignorada ...

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  • Overtime is Now More Expensive for Some California Employers

    By Procopio Partner and Labor and Employment Practice Group Leader Marie Burke Kenny The California Supreme Court has issued a ruling that changes the way overtime is calculated for employees who earn certain flat sum bonuses. Under California law, employers must pay overtime to non-exempt employees at a rate of no less than one and one half times the employee’s “regular rate of pay” for all hours worked in excess of 40 per workweek and in excess of 8 hours but fewer than 12 hours p...

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  • You Have Been Warned: Changes Coming to Proposition 65 Requirements

    By Procopio Associate Hazel Ocampo G. New Proposition 65 warning requirements will come into effect August 30, 2018, requiring that entities doing business in California provide additional details in product warnings. The new regulations require additional content and specify the method of warnings for certain environmental exposures, industries, and products, e.g. food/alcohol. The new regulation also requires that warnings be provided prior to persons completing the purchase of items vi...

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  • 5 Steps to Recognizing and Stopping Workplace Bullying

    By Procopio Partner and Labor & Employment Practice Group Leader Marie Burke Kenny As employers across the economic landscape seek to operate at peak efficiency, they are increasingly held accountable to meet demanding performance goals. As a result, employees at every level are experiencing increased tension and uncertainty. That can naturally lead to workplace tension and sometimes even bullying. No matter the circumstances, bullying should never be tolerated.  In today’s wor...

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  • 5 Steps to Keeping Your Trade Secrets Secret

    By Procopio Partner Mindy M. Morton A high-stakes trial that began this week between ride-sharing market leader Uber and self-driving car designer Waymo is front-page news. We frequently see patent and copyright cases in the headlines, but this is a trade secret case, which infrequently achieve such a high profile. What many people don’t realize, however, is that trade secrets are vital to the U.S. economy. According to the Office of the National Counterintelligence Executive, companies...

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  • Recreational Marijuana Use is Now Legal in California: How Does That Impact Employers?

    By Procopio Associate Annie Macaleer It’s now legal under California law to engage in recreational marijuana use, and it’s safe to assume that some of your employees are taking advantage of the newly enacted law. How does that impact your ability to monitor existing employees and screen potential applicants? Not as much as you might think. It does, however, present a big challenge for many employers to ensure employees and applicants understand that, while certain aspects of state law...

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  • Should You Form a Social Purpose Corporation?

    In the current climate of consumer activism, companies are trying to find ways to show their commitment to principles beyond the financial bottom line. California law provides for “social purpose corporations,” creating a legal structure for companies that are for-profit, and yet want to pursue social and community goals as well. This article describes some of the advantages and disadvantages of forming a company as a California social purpose corporation. Advantages • Legal pro...

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  • 3 Proactive Steps Lenders Should Take In Light of a Recent Appellate Panel Ruling

    By Procopio Of Counsel William A. Smelko Experience teaches that not every loan recipient will repay the lender in a timely fashion. Lenders commonly make use of third-party collection agencies when a loan falls significantly into arrears. In light of a recent decision by the 9th Circuit Bankruptcy Appellate Panel, however, it is more critical than ever for lenders to be cognizant of the letter of the law when it comes to interacting with a debtor who has filed for bankruptcy or received ...

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  • What Do Sexual Harassment and Taxes Have in Common?

    By Procopio Partner Phillip L. Kossy While you might think this continues with a joke about walking into a bar, the truth is that the current cultural/legal upheaval surrounding sexual harassment and misconduct and the just-enacted tax reform bill actually do intersect in at least one direct way — buried in Section 13307 of the “Tax Cuts and Jobs Act,” located on page 206 of 503. Section 13307 of the new legislation amends Section 162 of the Internal Revenue Code pertaining to ...

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