Starting a Business in Los Angeles? 10 Essential Legal Steps to Protect Yourself and Your Business

Entrepreneur planning his new business in Los Angeles with essential legal steps in mind.

Thinking of starting a business in Los Angeles? With over 1.3 million small businesses, LA is an entrepreneurial powerhouse! Discover the 10 essential legal steps to safeguard your venture and thrive.

May 24, 2024

Launching a new venture in Los Angeles opens doors to immense opportunities yet also carries complex legal responsibilities. Savvy entrepreneurs recognize that investing in essential legal groundwork from the outset protects personal assets, prevents disputes, and positions startups for sustainable success.

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Need assistance navigating legal aspects of starting a Los Angeles business? Tap into our expertise for step-by-step guidance!

This guide breaks down 10 pivotal legal action items every Los Angeles founder must prioritize to mitigate risks and establish a rock-solid foundation. From entity formation to intellectual property protection, we detail how to safeguard your budding enterprise.

1. Choose the Right Business Structure

    • Sole Proprietorship: Simple setup but no personal asset protection from business liabilities.
    • Partnership: Easy formation allowing profits/losses to pass through to partners’ individual tax returns. Also no personal asset protection and one partner can be personally liable for the actions of the other partner’s actions.
    • Limited Liability Company (LLC): Flexible option combining pass-through taxation with personal asset safeguarding.
    • Corporation: Separate legal entity providing robust personal asset protection but more complex compliance obligations.
    • Professional Corporation: Required for some licensed fields like law, medicine, accounting etc.


    • Sole proprietor Dana is personally responsible for business debts and lawsuits.
    • Ethan and Faith’s 50/50 partnership allowed profit sharing without complex corporate formalities but a lawsuit threw a wrench in their operations.
    • The LLC protects Gwen’s personal savings if her company faces legal issues.
    • Dr. Hector must form a professional corporation for his medical practice under state law.
    • Inez’s S-Corp enjoys limited liability with simpler taxation than a C-Corp.

How to Decide:

    • Assess personal asset risks if business faces lawsuits or bankruptcy.
    • Consider tax implications of structure on business and personal income.
    • Determine if industry regulations mandate certain entity types.
    • Factor in complexity of reporting and paperwork requirements for compliance.
    • Discuss long-term goals with a startup attorney and tax advisor.


    • Can I change my entity later? Yes, but may have tax consequences, so choose well initially.
    • What’s most common for startups? LLCs or S-Corps balancing liability protection and simpler taxation.
    • How much does incorporation cost in LA? Filing fees alone often exceed $100 plus any legal costs.
    • Does my entity have to match my business name? No, can differ or you can file “Doing Business As” for fictitious name.
    • When is sole proprietorship enough? Rarely.

2. Register Your Business Name

    • Conduct Thorough Name Search: Ensure desired name isn’t already in use by another business.
    • Verify Name Complies with State Rules: California restricts certain words/phrases without required permissions.
    • File Formal DBA as Needed: Sole props and partnerships must file Fictitious Business Name statement to use any name besides owner’s.
    • Include Required Designators: LLCs and Corps must have identifiers like “LLC”, “Inc.”, “Corp.”, etc. in name.
    • Register with Required State/Local Agencies: In LA, file name docs with both CA Secretary of State and LA County Registrar.


    • Juan couldn’t use “Shear Genius” for his hair salon since it was already registered.
    • Kimberly had to get advance state approval to have “Bank” in her financial company name.
    • Sole proprietor Louis filed a DBA as “Paw Palace” to name his dog grooming business.
    • Molly listed her catering business as “Nibbles & Noshes, LLC” to have proper suffix.
    • Nate registered his LA accounting firm name with both CA SOS and LA County.

How to Proceed:

    • Search business name availability on CA Secretary of State’s Business Search tool.
    • Review CA’s business name rules on restricted words/phrases and designators.
    • File Articles of Incorporation/Organization with CA SOS including name.
    • Submit Fictitious Business Name Statement with LA County Registrar if required.
    • Consider trademarking name and logo for brand protection on state and federal levels.


    • What if name is available in CA but not in LA County? You likely can’t use it since most LA businesses must register with both.
    • How long does name registration last? Perpetually for Corps and LLCs. 5 years before renewal for Fictitious Business Names.
    • Should I get a trademark too? Yes, registering name doesn’t give brand protection like trademarks.
    • Can I put “Corporation” in my name without incorporating? No, that would violate CA naming rules and mislead the public.
    • What if I have locations outside LA? You may need to file name registrations in all counties where you operate.

3. Obtain Necessary Licenses & Permits

    • Obtain General Business License: Nearly all LA enterprises need local license to operate legally.
    • Secure Professional/Occupational Licenses: Certain industries like construction, cosmetology, real estate etc. mandate specialized licenses.
    • Get Health Permits: Food service and other health-sensitive businesses must obtain Health Department permits.
    • Don’t Forget Signage/Alarm Permits: Separate approvals often required for business signs, security systems, etc.
    • Explore Zoning/Conditional Use Permits: Special clearance needed if business type restricted in location.


    • Olivia obtained a general LA business license before opening her gift shop.
    • Contractor Paul secured his specialized California construction license.
    • Chef Quentin got Health Department approval prior to launching his catering business.
    • Retailer Reyna filed for separate signage and alarm permits with the city.
    • Skylar’s tutoring service needed special zoning clearance to operate from her home office.

How to Get Started:

    • Visit LA City’s “Business” portal to learn general license requirements for your business type.
    • Check with CA Department of Consumer Affairs for any occupational licensing mandates.
    • Contact LA County Department of Public Health if you prepare, sell or serve food/drinks.
    • Review signage and alarm system permit regulations on LA City’s Building & Safety page.
    • Search zoning designations for your business address on ZIMAS, LA’s property mapping tool.


    • What if I have multiple business activities? You likely need licenses for each distinct type.
    • Do I need a license if running business from home? Yes, most home-based businesses still requirelicensing.
    • How long do licenses/permits last? Many are annual, but some have 2-5 year terms before renewal required.
    • What happens if I operate without proper licensing? You may face citations, fines, closure and legal penalties.
    • Can I start the license process before my business opens? Yes, and this is recommended to avoid delays.

4. Establish Separate Business Bank Accounts

    • Open Distinct Business Checking/Savings: Don’t commingle business and personal funds to preserve liability protection.
    • Obtain Dedicated Business Credit Card: Streamlines expenses tracking, builds business credit.
    • Secure Employer Identification Number (EIN): Like an SSN for your business – required for business banking.
    • Designate Authorized Banking Signers: For Corps, documents officers approved for financial transactions.
    • Consider Establishing a Line of Credit: Can aid with cash-flow management as business grows.


    • Ursula set up a small business checking account to handle her new PR firm’s finances.
    • Vincent got a business rewards credit card to easily categorize his software startup spending.
    • Wendy applied for an EIN to allow her to open business bank accounts for her LLC.
    • Xavier’s board designated authorized banking signers when establishing their nonprofit.
    • Yolanda worked with her bank to secure a business line of credit as a safety net.

Steps to Take:

    • Research business banking options and their fee structures, perks.
    • Apply for an EIN with the IRS – generally instant if done online.
    • Gather documentation like Articles of Incorporation, ownership agreements, EIN confirmation.
    • Designate authorized banking signers and have them present ID when opening accounts.
    • Discuss your anticipated banking needs like an eventual line of credit to determine best fit.


    • Can I use my personal bank account if I’m a sole prop? You can, but separating is still best practice.
    • What’s the difference between an EIN and TIN? EINs are federal and TINs are state level, but serve similar functions.
    • Do I need a business savings account too? Smart to have to build cash reserves, but not mandatory like checking.
    • Should I go with a big bank or local credit union? Depends on your needs – local may have more personalized service but fewer location options.
    • What if I need to accept credit cards? You’ll need to sign up for merchant card processing – some banks bundle this.

5. Follow Employment Law Guidelines

    • Classify Workers Properly: Follow ABC test to determine if employees or independent contractors.
    • Register with EDD: Businesses with employees must get a CA Employer Payroll Tax Account Number.
    • Obtain Workers’ Comp Insurance: Required for any business with employees to cover on-the-job injuries.
    • Adhere to Wage and Hour Rules: Pay minimum wage, overtime, and provide breaks per regulations.
    • Post Required Notices: Display mandatory posters on minimum wage, safety, workers’ rights etc.


    • Zara uses the ABC test to ensure her salon receptionists aren’t misclassified as contractors.
    • Restaurant owner Andrew registered with the EDD as soon as he hired his first employee.
    • Brianna obtained workers’ comp coverage for her delivery drivers in case of accidents.
    • Carlos uses an app to track his retail staff hours and ensure proper overtime payment.
    • Dana downloaded and posted all required employee rights notices in her office breakroom.

Actions to Take:

    • Review the CA Labor Commissioner’s ABC test info to assess worker classifications.
    • Register with EDD for a payroll tax account number if you have or plan to hire employees.
    • Shop for a workers’ comp insurance policy from a licensed carrier in the state.
    • Ensure payroll system calculates pay in alignment with local minimum wage and OT rules.
    • Post mandatory labor law notices in a conspicuous location accessible to all employees.


    • What if I only have 1099 contractors, not W-2 employees? You still must follow ABC test but some regs like workers’ comp and OT won’t apply.
    • Does LA have its own minimum wage? Yes, it’s higher than CA’s and goes up annually July 1.
    • How much workers’ comp coverage do I need? Minimums vary by industry but generally $1 million per incident is recommended.
    • What are the meal and rest break rules? 30 min unpaid meal break for 5+ hour shifts. 10 min paid rest break per 4 hours worked.
    • Where can I get the mandatory labor posters? Free downloads available from the CA Labor Commissioner’s office site.

6. Protect Your Intellectual Property

    • Trademark Your Brand Elements: Business name, logo, slogan and other defining brand assets.
    • Secure Patents on Proprietary Inventions: Ensures you have exclusive rights to make, use, and sell.
    • File Copyrights for Original Content: Protects authorship rights to creative works like writing, art, music and more.
    • Implement NDAs: Non-disclosure agreements shield trade secrets with employees & contractors.
    • Add Website Terms & Conditions: Clarifies your site’s intellectual property ownership and allowed uses.


    • Elena trademarked her wedding planning company’s name and distinctive heart logo.
    • Robotics company Futuriza patented their proprietary drone stabilization technology.
    • Gina filed copyright registration on the children’s book she authored and illustrated.
    • Hector had his engineers sign NDAs to safeguard his startup’s algorithm innovations.
    • Irene added terms prohibiting republishing of her site’s blog content without permission.

Action Plan:

    • Conduct a trademark search on the USPTO database before filing an application.
    • Have a patent attorney assess if your invention meets uniqueness criteria for protection.
    • Submit copyright applications for your creative works through the US Copyright Office portal.
    • Ask a lawyer to draft an NDA template you can have workers and vendors sign as needed.
    • Update website terms clarifying content ownership and prohibiting unlicensed uses.


    • Do I need to register my trademark to have rights? Common law rights exist without registration but are limited geographically. Registration provides broader benefits.
    • What if someone else trademarks my business name? You may have to change names if they registered first. Do searches before settling on a name.
    • How long does patent protection last? Utility patents filed after June 8, 1995 last 20 years from application date.
    • Is copyright registration required? Not mandatory but establishes public record strengthening your case if infringement occurs.
    • What if a worker refuses to sign my NDA? Can likely terminate them as NDAs are often a condition of employment, especially if they’ll access sensitive info.

7. Secure Adequate Business Insurance

    • Assess Your Unique Risk Factors: Exposures vary by industry, size, location and other variables.
    • Consider a Business Owners Policy (BOP): Bundles general liability and property coverage.
    • Add Professional Liability If Needed: Errors & Omissions policies cover alleged negligence in your professional services.
    • Get Cyber Liability Coverage: Crucial if you store sensitive client data that could be breached.
    • Explore Business Interruption Insurance: Replaces lost income if you must pause operations from a covered event.


    • Jack’s landscaping business got a BOP with $1M liability and coverage for his equipment.
    • As an event planner, Kendra added professional liability to protect against client lawsuits.
    • Liam’s e-commerce store purchased cyber insurance after a costly data breach.
    • Mia’s bakery has business interruption coverage to pay ongoing expenses if its kitchen floods.
    • Noel consulted an insurance broker to assess all her business’s risk exposures.

How to Get Insured:

    • Document your business property, revenue, square footage, and employee count.
    • Gather 3-5 quotes from reputable commercial insurance providers or brokers.
    • Review coverage limits, deductibles, and premiums to compare options.
    • Bundle policies for discounts but avoid underinsuring to save money.
    • Schedule annual insurance reviews as your business grows and changes.


    • What does general liability cover? Third-party bodily injuries, property damage, and reputational harm.
    • Is business insurance required by law? Only workers’ comp is mandatory. The rest aren’t legally required but often contractually necessary.
    • How much coverage do I need? Depends on your risks but most small businesses carry at least $1M in liability.
    • What’s the difference between claims-made and occurrence policies? Claims-made only covers claims filed while policy is active. Occurrence covers incidents that occurred during policy period, even if claim is filed later.
    • What if my business is home-based? Your homeowners’ insurance likely won’t cover business liabilities. Still need separate business policies.

8. Maintain Clean Accounting & Records

    • Choose Cash or Accrual Accounting: Cash records revenues/expenses when money changes hands. Accrual does so when earned/incurred.
    • Implement Bookkeeping Software: Automates tracking of income, expenses, invoices, and payments.
    • Digitize Financial Documents: Securely store records electronically for easy access and backup.
    • Keep Personal & Business Records Separate: Distinct documentation prevents commingling and maintains liability protections.
    • Plan for Tax Obligations: Set aside money for estimated taxes, payroll withholdings, and annual filings.


    • Oscar’s plumbing business uses accrual accounting to record unpaid customer invoices as revenue.
    • Priya automates her marketing agency’s books with cloud-based software like QuickBooks.
    • Rafa scans and uploads receipts for business expenses to Google Drive folders.
    • For Sasha’s art gallery, personal finance stays separate from business banking and records.
    • Tanya’s yoga studio budgets 30% of revenue toward quarterly estimated tax payments.

Recordkeeping Tips:

    • Consult an accountant to determine which accounting method makes sense for your business.
    • Research the features of different bookkeeping software to find the best fit.
    • Use document scanning apps to digitize records on the go.
    • Strive to update books at least monthly to avoid disorganization and tax time stress.
    • Keep all business records for a minimum of 3 years, ideally 7 if IRS audited.


    • What business records should I keep? All financial docs, permits/licenses, contracts, business plans, and meeting minutes at minimum.
    • How do I calculate estimated tax payments? Generally pay 100% of prior year’s tax or 90% of current year’s liability in quarterly payments.
    • Do I need a CPA to do my business taxes? Not required but highly advisable to maximize deductions and ensure compliance.
    • What triggers an IRS audit? Random selection, document mismatches, industry, and certain deductions raise audit risk.
    • What if I accidentally mix business and personal expenses? Avoid when possible but if it happens, clearly document the business purpose of any mixed charges.

9. Have Clear Client Contracts

    • Define Project Scope & Deliverables: Specify what products/services you’ll provide in what timeframe.
    • Outline Payment Terms: Cover pricing, invoice timing, late fees, and accepted payment methods.
    • Address IP Ownership: Clarify who owns final work product and any intermediate materials.
    • Set Communication Protocols: Expected response times, project update frequency, and main point of contact.
    • Plan for Dispute Resolution: Required mediation, arbitration, or governing law for legal conflicts.


    • Ursula’s consulting agreement specifies 2 weekly phone strategy sessions per client.
    • Victor’s web design contracts require 50% up front and 50% on final site delivery.
    • Wendy’s ghostwriting clients get full rights to final book manuscripts but not her notes.
    • Yolanda’s dev shop guarantees 24 business hour response times for IT support clients.
    • Zack’s coaching contracts require meditation before lawsuits and apply California law.

Drafting To-Do’s:

    • Vet contract templates from your industry’s professional associations for best practices.
    • Have a business attorney review contracts and suggest protective clauses.
    • Use e-signing software like DocuSign or HelloSign for contactless client contract execution.
    • Include contract termination terms clearly specifying kill fees or refund policies.
    • Get client’s initials on any additions/amendments to contracts to confirm mutual understanding.


    • What’s a kill fee? A pre-set fee client must pay to terminate a contract early without cause.
    • Do I need different contracts for each client? Ideally customize terms for each but a strong template is the base.
    • What if a client won’t pay? Contract should specify late fees and legal channels for recourse, like mediation or small claims.
    • Are digital signatures legally valid? Yes, the ESIGN Act gives electronic contracts same weight as wet ink.
    • How detailed should project scope be? More complex projects benefit from greater specificity to prevent scope creep.

10. Plan Your Business Legacy

    • Draft a Succession Plan: Instructions for who should take over the business if you’re unable to run it.
    • Write a Buy-Sell Agreement: Contract specifying how partners can buy out your share if you leave.
    • Get Key Person Insurance: Life insurance that provides funds to help the business survive your absence.
    • Outline an Exit Strategy: How you plan to eventually leave the business – succession, sale, closure.
    • Coordinate Estate Planning: A will or trust to dictate what happens to business assets/wealth when you pass.


    • Anita’s succession plan prepares her daughter to take over the family restaurant.
    • The buy-sell agreement for Brent’s construction company sets a share price and payment structure.
    • Carmen’s key person policy would cover hiring a new CEO if she passes prematurely.
    • In 5 years, Doug plans to sell to an outside buyer as his exit strategy.
    • Elise’s trust distributes company stock to her children upon her death.

Planning Steps:

    • Identify key positions and people for seamless business continuity.
    • Get the business professionally valued to inform partner buyouts and sale prices.
    • Work with an insurance broker to determine optimal key person coverage.
    • Discuss exit options with your attorney and financial advisor.
    • Update succession and estate plans every 3-5 years as business evolves.


    • Do I need these plans as a solo owner? Yes, to ensure business continues and loved ones are provided for if you become incapacitated or pass on.
    • Who should I name as a successor? Someone with the skills and desire to run the business. Can be family, employee or outside party.
    • How do I value my business? Methods include market, income, and asset-based valuations. CPAs can help.
    • When’s the best time to start planning? Now. The earlier the better for a smooth transition no matter what happens.
    • What if I have no clear successor? May need to hire externally, sell to an employee or outside buyer, or wind down operations.


ntrepreneur holding cash outside a business setup in Los Angeles.

Did You Know? Los Angeles County isn’t just the entertainment capital—it’s also a startup hotspot! Over 90% of LA’s businesses are small enterprises, many of which have fewer than 20 employees. This thriving ecosystem fosters innovation and creativity, making LA a prime location for entrepreneurial ventures.

With abundant economic opportunity, the Los Angeles market attracts dreamers and doers from all industries. Yet successfully navigating the gauntlet of logistic, financial and legal hurdles takes meticulous planning to protect the fruits of your labor.

From entity selection to intellectual property, employment practices to exit plans, getting the legal fundamentals right paves an unfettered road to prosperity. When you treat legal obligations as allies rather than obstacles, the City of Angels eagerly nurtures your ambition.

Need Legal Help? Contact Us

If you’re an LA entrepreneur in need of business law guidance, our expert attorneys are here to help. We’ll work closely with you to create a custom legal strategy that supports your goals and minimizes risks. Contact us today to schedule a consultation and let’s get started!

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LawInc is your trusted partner for any legal needs, including starting and running a business in Los Angeles.

Evaluate Your LA Business Law Acumen

Questions: Choose the Right Business Structure

    • 1. What LA business structure offers liability protection without double taxation?
      • A) Sole Proprietorship
      • B) Partnership
      • C) Limited Liability Company (LLC)
      • D) C Corporation
    • 2. Which entity is required for most licensed professionals like doctors and lawyers?
      • A) Professional Corporation
      • B) Non-Profit Corporation
      • C) General Partnership
      • D) Sole Proprietorship
    • 3. What’s a key advantage of S-Corps over C-Corps?
      • A) Limited liability protection
      • B) Pass-through taxation
      • C) Unlimited shareholders
      • D) Simpler compliance requirements
    • 4. Which structure is simplest but riskiest for sole owners?
      • A) Sole Proprietorship
      • B) Single-Member LLC
      • C) Corporation
      • D) Non-Profit
    • 5. What should drive entity selection for an LA business?
      • A) Industry norms
      • B) Tax treatment
      • C) Owner personal liability
      • D) All of the above

Answers: Choose the Right Business Structure

    • 1. C) LLCs combine personal asset protection with pass-through taxation, avoiding double taxation of C-Corps.
    • 2. A) California requires most licensed professionals to form Professional Corporations for malpractice liability reasons.
    • 3. B) S-Corps have pass-through taxation like a partnership whereas C-Corps face entity level tax plus shareholder dividend tax.
    • 4. A) Sole proprietorships are simplest to start but owners’ personal assets are vulnerable to business debts and lawsuits.
    • 5. D) Industry regulations, tax implications, liability risks and more come into play when choosing an entity type.

Questions: Register Your Business Name

    • 1. What’s required to verify business name availability in LA?
      • A) Searching CA Secretary of State business database
      • B) Searching LA County Clerk’s fictitious name registry
      • C) Both of the above
      • D) Neither of the above
    • 2. Who must file a DBA in Los Angeles?
      • A) Sole proprietorships
      • B) General partnerships
      • C) Corporations
      • D) A and B only
    • 3. What words are restricted in LA business names without special approval?
      • A) Bank
      • B) Attorney
      • C) Insurance
      • D) All of the above
    • 4. What business structures must include a suffix like “Inc.” or “LLC” in their name?
      • A) Sole Proprietorships
      • B) Partnerships
      • C) Corporations and LLCs
      • D) None are required
    • 5. How long does a fictitious business name registration last in LA County?
      • A) 1 year
      • B) 5 years
      • C) 10 years
      • D) Indefinitely

Answers: Register Your Business Name

    • 1. C) In LA, you must search both state and county databases to confirm name availability as registration is required with both.
    • 2. D) Sole props and partnerships must file DBAs to use any name besides the owner’s legal name. Corps and LLCs just use the name on their formation docs.
    • 3. D) Words falsely implying a business is a bank, attorney, doctor or insurance company are restricted without proof of licensure.
    • 4. C) Corporations must include “Inc.”, “Corp.” etc. LLCs must have “LLC” or “Limited Liability Company” to signal their entity status.
    • 5. B) Fictitious business name statements in LA County are valid for 5 years. A new statement must then be filed to continue using the name.

Questions: Obtain Necessary Licenses & Permits

    • 1. What’s the main business license required by the City of Los Angeles?
      • A) BTRC
      • B) Fictitious Business Name
      • C) Seller’s Permit
      • D) Occupational License
    • 2. Which businesses likely need a seller’s permit in LA?
      • A) Retailers
      • B) Wholesalers
      • C) Manufacturers
      • D) All of the above
    • 3. What agency issues health permits for LA restaurants?
      • A) California Department of Public Health
      • B) Los Angeles County Department of Public Health
      • C) Los Angeles Department of Building and Safety
      • D) U.S. Food and Drug Administration
    • 4. Which businesses likely need professional/occupational licenses?
      • A) Accountants
      • B) Cosmetologists
      • C) Contractors
      • D) All of the above
    • 5. What can happen if you operate without a necessary license in LA?
      • A) Fines
      • B) Business closure
      • C) Criminal charges
      • D) All of the above

Answers: Obtain Necessary Licenses & Permits

    • 1. A) The Business Tax Registration Certificate (BTRC) is required for all businesses operating in the City of LA.
    • 2. D) Generally, any business selling or leasing tangible goods in LA needs a seller’s permit from the CDTFA to facilitate sales tax collection.
    • 3. B) The LA County Department of Public Health Environmental Health Division handles restaurant health permits and inspections in the county.
    • 4. D) Many professional services are regulated and require state licensure through boards like the CA Board of Accountancy, Contractors State Licensing Board, etc.
    • 5. D) Operating without proper licensure risks penalties like fines, forced closure, and even criminal charges in severe cases.

Questions: Follow Employment Law Guidelines

    • 1. What’s the key factor distinguishing employees from contractors under CA’s ABC test?
      • A) Whether the company controls their work
      • B) If the work is outside the company’s usual business
      • C) If the worker has an independent business
      • D) All of the above
    • 2. At what employee count does CA law require sexual harassment prevention training?
      • A) 1+ employees
      • B) 5+ employees
      • C) 15+ employees
      • D) 50+ employees
    • 3. What is the minimum wage in the City of LA starting on July 1, 2024?
      • A) $13.25/hour
      • B) $15.00/hour
      • C) $16.04/hour
      • D) $17.28/hour
    • 4. Which poster must LA employers display in a conspicuous place?
      • A) Paid Sick Leave
      • B) Workers’ Compensation
      • C) Cal/OSHA Health and Safety
      • D) All of the above
    • 5. What’s the general guideline for unpaid vs. paid 10-minute rest breaks in CA?
      • A) Unpaid for every 2 hours worked
      • B) Paid for every 2 hours worked
      • C) Unpaid for every 4 hours worked
      • D) Paid for every 4 hours worked

Answers: Follow Employment Law Guidelines

    • 1. D) Under the ABC test, a worker is an employee unless the company proves (A) it doesn’t control the work, (B) the work is outside its usual business, and (C) the worker has an established independent business doing that work.
    • 2. B) California employers with 5+ employees must provide sexual harassment prevention training to all employees.
    • 3. C) As of July 1, 2024, the minimum wage in the City of LA is $17.28/hour for all businesses, regardless of size
    • 4. D) LA employers must display posters on several topics including paid sick leave, workers’ comp, and health and safety in an area employees frequent.
    • 5. D) In general, California employers must provide a paid 10-minute rest break for every 4 hours worked.

Questions: Protect Your Intellectual Property

    • 1. Which of the following is a benefit of federal trademark registration?
      • A) Presumption of ownership
      • B) Public notice of your claim
      • C) Right to sue in federal court
      • D) All of the above
    • 2. What’s required for copyright protection of original works in the US?
      • A) Registration
      • B) Publication
      • C) Putting a © symbol on it
      • D) Nothing, it’s automatic when work is created
    • 3. How long does utility patent protection last from the application filing date?
      • A) 5 years
      • B) 10 years
      • C) 15 years
      • D) 20 years
    • 4. What can an NDA help protect?
      • A) Trade secrets
      • B) Business plans
      • C) Client lists
      • D) All of the above
    • 5. What intellectual property protection can website terms and conditions provide?
      • A) Copyright for content
      • B) Trademark for branding
      • C) Restrictions on use of site materials
      • D) All of the above

Answers: Protect Your Intellectual Property

    • 1. D) Federal trademark registration provides several key benefits including presumption of ownership, public notice, and the right to sue infringers in federal court.
    • 2. D) In the US, copyright automatically exists in original works as soon as they’re created and fixed in a tangible form. Registration provides additional benefits but isn’t required for protection.
    • 3. D) Utility patents generally last for 20 years from the application filing date, subject to the payment of maintenance fees.
    • 4. D) Non-disclosure agreements can help safeguard trade secrets and other confidential business information like plans, formulas, client lists, and more.
    • 5. D) A website’s terms and conditions can include clauses protecting the site’s content, branding, and restricting how users can utilize site materials.


The information provided in this article is for general educational and informational purposes only. It should not be construed as legal advice for any individual business’s situation. Business legal requirements can be highly fact-specific and vary based on location, industry, size, and structure. For guidance on how the laws and regulations presented apply to your unique business, please consult a licensed attorney and other relevant professional advisors such as a tax accountant, insurance broker, etc. The quiz questions and answers are simplified examples to test topical knowledge and do not replace a thorough legal analysis of one’s business circumstances.

Also See

Los Angeles Business Formation: Your Legal Guide from Hollywood to Silicon Beach