A Swell Season

author: Dustin Wetton

What a show. As a group composed of passion, the performance by The Swell Season at the Hollywood Bowl last night was amazing. While the venue was not as intimate as their last visit to Los Angeles, they were still able to connect with the whole audience as they blasted their sweet, sweet music over the thousands of listeners last night. Prior to their performance, beautiful Zooey Deschanel performed in her band She and Him. Her classical voice was nothing less than perfect last night and she laid the tempo for the night of great music. All in all, it was a great performance by all bands present.

When I first saw and heard The Swell Season it was before they really existed. Glen Hansard and Markéta Irglová were both doing individual things, such as The Frames. Yet in their movie Once, these two talented people joined their passions to create some great music. And thus, they formed The Swell Season. Being a local San Diegan, when I hear the word “swell” I automatically relate to the ocean and a swell, picturing the large swells being brought in from a storm far off the coast. Yet, I have also been watching some Mad Men recently and they too use the word “swell” frequently. They say it with the same meaning of “that’s great” or “that’s amazing.” And I guess this can work for this band too, The Amazing Season, The Great Season. Whatever their meaning, this band is something to look into.

How does any of this relate to law? How can this help out our clients? The whole time I was writing this I was waiting for something to click that I can draw a connection back to our practice area, but I think I won’t. I think this will be an example of the character and outside interests of Laurus Law. While we do practice law, and we are legal professionals, we also have other interest and enjoy great music. Ce la vie.

If you have any questions or comments regarding this blog, or would like to recommend some music, email us at blog@lauruslaw.com

To The Moon

author: Dustin Wetton

After a nice relaxing weekend, its good to be back to work. This week is planned with networking events at local entrepreneur and business owner network groups throughout the county, as well as meetings between our lawyers with other lawyers in the community to build upon our marketing techniques. Things are still changing here at Laurus Law Group, but its nice to see it all coming together nicely.

This blog is centered on the moon. I was listening to NPR radio on my way home one night and heard on their program “Things You Should Know” the interesting effects of the moon. The so-called "moon illusion" or "moon effect" has been discussed by many people over since our beginnings. Even Aristotle mentions it in 350 BCE. The illusion or effect is the change in the moon size when it is near the horizon compared to when it is high in the sky. There are many memories that I have looking at the full moon rising over a lake or between mountain passes and being amazed by its immensity, as I am sure you all have many similar memories. According to the radio program, some people judge the moon to be as much as twice as large, but the average estimate is 50% to 75% larger. The best part of this change in size of the moon is that no one knows why it happens. Scientists have agreed, to my great disappointment, that the moon is not changing in size every night as it passes from horizon to zenith. But they really cannot explain why our perception of the moon changes.

This illusion is very amusing to me. The moon is the moon, by definition. Its size is constant, at least mostly constant, but to our eyes it fluctuates on a daily basis. It makes me think of philosophical topics such as relativism and absolutes. It also makes me think of the myths and beliefs of perceptions. While the public at large may believe one thing to be true based on perception, the truth of a situation may be hiding behind this perceived belief. And thus, I segue into the Alter-Ego theory.

The alter-ego theory is a theory based upon a business entity being created in order to hide the owners from liability, yet its only purpose is to serve as the “alter-ego” of the owners. Therefore, to tie it to the moon, the perception of a business and holding itself out to be a business is only a façade, and the truth is that the business is just a mask for the owner to try and hide behind. When an alter-ego is found, the protections afforded to certain entities are vanished and the owners can be attacked personally for any liabilities of their business. Of course the alter-ego can be found when owners are caught to purposefully be hiding behind their business as a fraud, but there are even simpler, more innocent, ways of being found as an alter-ego business. When a business is not operating as a business, courts have found that the business is not truly a business, but is instead an alter-ego. Acting like a business is ensuring that all letterheads match, that monthly board meetings are met and minutes are taken, that correct voting at all meetings are conducted properly, that papers are recorded and organized properly. While each of these, and many other tasks, may seem minute on an annual basis, these tasks are what courts look to and litigators try to find when the alter-ego theory is being used as a weapon. Thus, governing your business properly on a daily basis is a necessity. To be sure that your business is run properly, it is often a good idea to hire an attorney to check annually, semi-annually, or quarterly that all of your business is being run properly.

In sum, the moon may look like its wavering between sizes and a business may seem to be operating as a business, yet the truth of both cases is that their perceptions do not always hold up to the truths operating behind the myths.

If you have any questions or comments regarding this blog, email us at blog@lauruslaw.com

Pros and Cons of Probate

author: Dustin Wetton

It was another good week for Laurus Law Group. We have updated our website to provide more information about the services that we offer our clients, along with providing a frequently asked questions (f.a.q.) page so that we can answer the more universal questions that we are frequented by. Earlier this week, I attended a CLE at the Vista Courthouse dedicated to helping attorneys understand the probate filing process better. The seminar was hosted by the North County Bar Association and was done very well. Probate is part of estate planning and thus it was a very needed educational seminar for me to attend to better assist our clients.

Probate is a necessary process for all of us, whether we enjoy thinking about it or not, almost every one of us will have to go through the process. Actually, there are little times in which you can avoid probate. Probate is the court that addresses the estate of a person after they pass. There are basically two types of cases that a probate court finds. The first is intestate. Intestate probate is when a person dies without any will in place. Thus, the court will have to find out what property is in the estate and then it will appoint a person to be in-charge of distributing the estate according to the laws of the jurisdiction in which the person passed. This person will then pay creditors and then designate the rest of the property of the estate to the heirs according to intestate succession laws that are governed not by the interest of the deceased or the family, but instead by statutes. Thus, a pro of the probate process is that it allows the property to be dispersed, even if the deceased does not have an estate plan. Also, this process helps to keep the emotions and desires of the families out of deciding what to do with the property, which is most often a good thing.

The second type of case that a probate court sees is called a testate case. Testate cases are those in which the deceased person passed with a will in place. This will of course can open the door to the creativity of estate planning, meaning that the will can either be just the simple will of a person, or it can be a pour-over will that dumps whatever is not part of a larger estate plan into the trusts document. There are a huge variety of types of estate plans and ways to plan for a testate case, but for this blog’s purpose, I am just going to explain that there is a testate case. Through a testate case, the deceased has control over how the property will be dispersed, and the court will just have to make sure that the will is valid. If a trust is involved, then the court will just have to make sure that the trust is valid. Also, the court will hear any disputes about the validity of either documents. By creating a will, the estate can save a large amount of money by reducing the probate courts time and effort. By creating a trust and a pour-over will, the estate would save even more money.

Thus, when thinking about probate, the pros are that its great for any disputes and to ensure that some plan is created for every deceased, but the cons are the costs and time burdens that it places on those left behind. Sometimes the costs can be around 7% of the total estate, which can really be quite a lot. Thus, creating some sort of plan, even if its just your first draft, is a great idea for every person, in every situation.

If you have any questions or comments regarding this blog, email us at blog@lauruslaw.com

BP's Bankruptcy

author: Dustin Wetton

Ever since the April 20, 2010 blasts that sent gallons of oil leaking into the Gulf, the BP company has been heavily under legal fire. Lawsuits for damages, ranging from environmental to loss of life, have really hurt the company. Yet according to a recent article at BreakingLegalNews, a lot more harm will have to come BP’s way for any possible consideration of bankruptcy to be discussed. According to the article, BP still has many resources and options available to itself before it has to consider bankruptcy. While it has suffered in the stock market, has many lawsuits pending against it, has been on the downside of almost every judgment declared by the court, and has many creditors that are worried about being paid, BP still does not have to file bankruptcy. Thus, for our blog’s purpose, even when a company such as BP, under the worst environmental circumstance in many years, can believe that it does not have to file for bankruptcy, the question is when should you? When should a company or an individual decide to file for bankruptcy?

Luckily for individuals, the answer is easier than for businesses. For a chapter 7 bankruptcy to be filed, an individual must pass what is known as a “means-test.” Under the current BAPCA standards, an individual can only file for chapter 7 bankruptcy if they can prove to the federal court that their means cannot afford their end. If they however show that they can afford their bills and if they just rearranged their finances, they could get out of debt, than the court will not allow for a bankruptcy.

Thus, for individuals, a good method to see when you should file bankruptcy is to do a similar test. If you take all the debts you owe and compare then to all the income you make, ask yourself if it is possible to get out of debt without filing bankruptcy. If you know that you cannot make your monthly living payments, your car payments, your student loans, your child support, and your credit card bills without sacrificing your food or clothing, than you probably should consider bankruptcy. But, if you are sitting in similar shoes to that of BP, and you have a lot of debt, but you also have a lot of options and can refocus your finances, than you probably should consider doing that first before you file for bankruptcy.

Therefore, to answer my own question, when should you file bankruptcy…you should file it when it is rational to do so. That is, the decision to file for bankruptcy should be responsible, logical, and make the best sense. That goes for both individuals and for businesses. If you are considering bankruptcy, reflect on your financial situation and decide if it’s the best decision for you and your family.

If you have any questions or comments on the blog, email us at: blog@lauruslaw.com.

What's in a Name?

author: Dustin Wetton

This has been another good week for Laurus Law. Mei and I both attended an MCLE program hosted by the North County Bar Association titled “How to Negotiate Leases.” This lesson focused on how professionals should negotiate their commercial leases during the current real estate market conditions. It was a very interesting seminar and something that I think Mei and I can definitely use in the future. Later that day, I went to a Symantec seminar for businesses at Dave and Busters. It was my first seminar/event at Dave and Busters. I was surprised by how they were able to have a showroom that clouded all the noises of the games and the bar. At this conference I was reminded of how much I really don’t know. The IT world has IT people in it for a reason, it really is a learned field. This weekend Mei and I will be out of town to celebrate the country’s birthday. I’ll be up in Lake Arrowhead, CA and Mei will be in London. It will be a great weekend. Happy Birthday America.

Today’s topic for our blog is on names. Why did we choose “Laurus” as our name? Laurus means success, triumph, and victory in Latin. The origins of the word come from the Laurel tree, in which the bay leaves of the tree were used to create the wreathes that used to crown the heads of the victors of the Olympic Games. Thus, we got our logo from that story as well. Our legal name is Laurus Law Group, LLP. But what if we wanted to be called something else? Did you know that depending upon the type of entity you are your business name must sometimes contain certain words?

If you are curious about starting your own business or have often thought about what your business/company would be called if you have one, than this is a great blog for you. There are numerous ways to form your own business. What I mean is that you can be a sole proprietor, a partnership, a limited partnership, a limited liability company, a limited liability partnership, or a corporation. And yes, there are even more options of entities to create, but I am going to keep it simple.

A sole proprietor is the simplest way of owning a business. Normally, if you do this, the name of the company is under the business owners name. If you wish to have it anything either than just your first and last name, you must file a fictitious business name with the county your business operates in. Thus, while you pretty much can be called anything you want, it must not conflict with an already registered name and must be appropriate according to the county. The same is true for partnerships.

If you wish to create a limited partnership, your business must have “L.P.” listed after it or “limited partnership.” Thus, you can be called “Dusty’s Restaurant, LP.” Therefore, if you wish to be an LP you must have the status declared in the name of your business.

The same guidelines apply to a corporation. By incorporating with the secretary of state of the state in which your business operates in, your company name must include “inc.” or “corporation” or “ltd.”

Thus, while you may wish your business to be called just “Bob’s”, you may not be able to if you are formed under a certain entity. Why all the fuss? Actually, it has a lot to do with legal notices and litigation. Because businesses are treated like individuals in the legal world, they can often be sued individually from their owners. Yet, if the owners disappear during litigation, then the business is just a ghosts with no fruits to pay out. In order to show who owns the business and how the business is protected, legislation has been written to requiring the above wording to ensure that everyone knows what type of business entity the company is. Thus, the proper notice is given to the public so that people, and their businesses, can be held accountable.

If you have any questions or comments on the blog, email us at: blog@lauruslaw.com.