If an LLC has merged out of existence in California into another business entity, can they still sue my firm?
September 2, 2010
Question by John H: If an LLC has merged out of existence in California into another business entity, can they still sue my firm?
Last year, my California corporation (a c-corp) was hired and signed a contract with another company (an LLC) to build a marketing and branding package for them. The owner of this LLC was pretty much insane and it turned out to be a nightmare to work with him, however, we pushed on and delivered everything we promised (he kept insisting revisions and was never satisfied with our work)
After a horrible relationship, and fights, he insisted we broke the contract. Through his lawyer he sent several letters threatening he was going to sue my company to try to get his money back. After several months of lawyers sending letters back and forth, the communication stopped and we never heard from him. It’s been about 10 months since.
Recently, I checked the California Business Search site and I noticed his company has “merged-out” Does that mean he went out of business? does that mean he can still possibly sue us with his new business even though we signed a contract with his old LLC?
Best answer:
Answer by rickinnocal
When two business entities merge and form a new entity (Even if that entity retains the study of one of the prior ones) then that entity owns all the rights and obligations that apiece of the parts owned before the merger. That means that the new business owns the right to sue you exactly the same as the old one did.
Richard
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Six Sigma and Small Business – A Winning Combination
August 30, 2010
Mention the Six Sigma process and what nearly immediately comes to mind is a proficiency process for Huge Business to implement. But aren’t small businesses also vulnerable to pricey errors in time and calibre management, customer service and bookkeeping mistakes? So, what’s the problem?
Cost is the biggest impediment in deciding to implement the Six Sigma process into a small business entity. Unfortunately, most consulting firms try using a one-size-fits-all mentality when it comes to implementation and its associated costs.
Luckily, there are options acquirable for small businesses to take advantage of the 6 Sigma process and reap the same revenue-increasing benefits.
Small Scale Focus
Small and medium-sized businesses must seek out either consultants or consulting firms with the knowledge and know-how to implement the process in a cost effective manner for the smaller entity. Many small businesses are family-run, and would ideal benefit from one or two people being trained in the 6 Sigma process and then have them keep their certification level current with ongoing training.
Part of their work load will be implementing the necessary changes discovered during the Six Sigma process and making sure all are being employed and used effectively.
Selective Auditing
Another avenue acquirable is to hire Six Sigma trained and certified consultants to come in on a yearly or bi-annual basis to selectively audit the weaker or less productive areas of the small business. Obviously, the stronger more productive operations are in as much need of the 6 Sigma system, and thus the consultant can focus on the business areas where revenue generation is absent or nonexistent.
The certified consultant can then explain the needed changes to the company owner and employees in order to ensure an effective transition.
Every company, whether massive or small, can greatly benefit and improve their bottom line by adopting and implementing the Six Sigma process. The scope and breadth of the system can be plain or designed to accommodate any business entity and should not be discarded because of the higher price of across-the-board implementation costs.
The beauty of the Six Sigma system is its adaptability and flexibility; this does carry over in to its actual execution into any company’s business model. The small or medium-sized business owner must be continual in finding a Six Sigma consulting firm with the vision and insight to employ this application on a small scale.
Six Sigma and Small Business – A Winning Combination
Tony Jacowski is a calibre analyst for The MBA Journal. Aveta Solution’s Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.
Any advice or direction on how to find free/inexpensive help w/ funding and business plan for a start up?
August 27, 2010
Question by Kaia M: Any advice or direction on how to find free/inexpensive help w/ funding and business plan for a begin up?
Im a 29 yr old mom of two who is looking to begin up her own business. I am looking for advice on where to get free/inexpensive help with finding funding sources and also resources on putting together a business plan. Any advice or direction would be greatly appreciated!
Best answer:
Answer by Jeanne the Genius
Absolutely. You need to contact your local Small Business Association (SBA). They offer free classes to help you learn how to write a business plan that you can take around to discuss with bankers when you are ready for a small business loan to help with your begin up. They will tell you about all the different types of small business incorporation categories, so you will comprehend the difference between limited liability corporations (LLCs) and the more simple business structures. They will help you comprehend your responsibilities as a taxpayer. They might also introduce you to local business networking and help you find business incubation opportunities, such as affordable rent, group health insurance plans through consolidated small business groups, etc. It is a great resource, paid for through your taxes.
When you are ready to register your business, go to your state’s website and you will find all the information you need to file your paperwork through the secretary of state’s office.
Everything I have mentioned so far is free except for filing your business namem which is very inexpensive. Make sure you do a search so that you are not using a study already taken and copyrighted by another business entity.
One word of caution. PLEASE do not begin prey to those who tell you that they can help you find free government allows to begin a business. These are scams.
And use your local research library to search for similar businesses in your areea, so you know how close the competition is, and how much they made over the preceding years. This is simple to do and it should be incorporated into your business plan.
Good luck to you. Working from home is a wonderful thing.
Add your own answer in the comments!
Q&A: If an LLC has merged out of existence in California into another business entity, can they still sue my firm?
August 24, 2010
Question by John H: If an LLC has merged out of existence in California into another business entity, can they still sue my firm?
Last year, my California corporation (a c-corp) was hired and signed a contract with another company (an LLC) to build a marketing and branding package for them. The owner of this LLC was pretty much insane and it turned out to be a nightmare to work with him, however, we pushed on and delivered everything we promised (he kept insisting revisions and was never satisfied with our work)
After a horrible relationship, and fights, he insisted we broke the contract. Through his lawyer he sent several letters threatening he was going to sue my company to try to get his money back. After several months of lawyers sending letters back and forth, the communication stopped and we never heard from him. It’s been about 10 months since.
Recently, I checked the California Business Search site and I noticed his company has “merged-out” Does that mean he went out of business? does that mean he can still possibly sue us with his new business even though we signed a contract with his old LLC?
Best answer:
Answer by rickinnocal
When two business entities merge and form a new entity (Even if that entity retains the study of one of the prior ones) then that entity owns all the rights and obligations that apiece of the parts owned before the merger. That means that the new business owns the right to sue you exactly the same as the old one did.
Richard
Add your own answer in the comments!
It is not possible for a company with a high profit margin to have a low operating profit.?
August 21, 2010
Question by mary j: It is not doable for a company with a high profit margin to have a low operating profit.?
It is not doable for a company with a high profit margin to have a low operating profit.
1) false
2) true
Best answer:
Answer by Books
True. The profit could be going to pay bills or investors or repair the plant. Any number of things.
Know better? Leave your own answer in the comments!
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