The Christensen Law Firm The Christensen Law Firm 2026-05-19T06:16:31Z https://www.rexachristensen.com/feed/atom/ WordPress /wp-content/uploads/sites/1405080/2026/03/cropped-site-icon-1-32x32.png On Behalf of The Christensen Law Firm <![CDATA[Three factors to consider when choosing your business entity]]> https://www.rexachristensen.com/?p=48735 2026-05-19T06:14:05Z 2026-03-24T07:00:56Z Fundamental factors to consider While considerations for choosing a business entity vary depending on the industry, some essential factors apply to almost all businesses. These include the following:
  • The number of business owners or partners: Whether solo or two or more, owners can choose to operate a limited liability company (LLC) or corporation. However, solo owners cannot operate a partnership and multiple owners cannot establish a sole proprietorship.
  • Liability: In a sole proprietorship and partnership, the owners are the same legal entity as their businesses. Therefore, owners would be personally responsible for the company’s liabilities. But with an LLC or corporation, partners can be considered separate from the business and therefore cannot be held personally liable for the company’s debts and other credits.
  • Tax: With corporations, not only will the government tax the company revenue, but it will also require owners to pay taxes for their personal incomes. On the other hand, LLC partners are not subject to double taxation as company profits and losses are reported in their individual tax returns instead.
This list is not absolute but provides a basic idea of factors owners must consider when selecting business entities. Each business has unique considerations that might not apply to others but the three factors we mentioned are fundamental in establishing a business.]]> On Behalf of The Christensen Law Firm <![CDATA[Retaliation for Reporting Non-Payment of Wages]]> https://www.rexachristensen.com/?p=48736 2026-03-24T07:00:53Z 2026-03-24T07:00:53Z Non-Payment or Underpayment of Wages Is A Problem For Low Wage Workers Employees are often reluctant to report or confront their employer about problems in the workplace. This can be especially true of blue collar or low-wage employees who often live paycheck to paycheck. Unfortunately, this reluctance can lead to abuses by unscrupulous managers or employers. One of the most common complaints of such employees is that they were shorted on their hours, and therefore did not get paid for all the hours they worked. Another way that employers sometimes employ this practice is by not providing employees with a pay stub, which leaves them with no way to even check if they have been paid for all the hours worked, or if the hourly wage they are actually being paid is the same wage they were promised. Arizona Law Protects Workers Who Report Non-Payment or Underpayment of Wages Fortunately, the law offers workers some protection against such abuses. Specifically, Arizona’s Employment Protection Act states, in relevant part: The public policy of this state is that [a]n employee has a claim against an employer for termination of employment [if] [t]he employer has terminated the employment relationship of an employee in retaliation for [t]he disclosure by the employee that the employer has violated, is violating or will violate the statutes of this state. (Ellipses omitted). A.R.S. § 23-1501(A)(3)(c)(ii). Despite the confusing wording, the intent of the statute is clear—the Act prohibits retaliation for pointing out illegal activity by an employer. Importantly, retaliation against employees is prohibited in several other contexts as well. For example, the Act also prohibits retaliation if an employee refuses to break the law or if the employee makes a workers’ compensation claim [Id., §§ (A)(3)(c)(i) & (iii)]. Reporting Illegal Activity Is A Protected Activity By placing the reporting of illegal activity within the bounds of the state’s public policy, the legislature has provided the background and context necessary for the Courts to find that such reporting is a protected activity. See Hernandez v. Spacelabs Medical, Inc., 343 F.3d 1107, 1113 (9th Cir.2003)(finding that an employee can succeed in a claim for retaliation by showing that (1) he was engaged in a protected activity; (2) that he suffered an adverse employment action; and (3) that there is a causal link between the two). In other words, when an employee does something that is covered by the law, such as reporting underpayment of wages, it is illegal for the employer to fire them because of it. In the case of asking about or reporting unpaid or underpaid wages, or asking about the failure to provide a paystub, this is protected activity because the employer’s failure to do so violates Arizona law. Among other things, the law requires that “[e]ach employer . . . on each of the regular paydays, pay to the employees all wages due to the employees up to such date.” A.R.S. § 23-351(C). An Employee May Seek Compensation for Wrongful Termination If He Is Fired for Reporting Non-Payment of Wages For an employee who is wondering whether to ask their employer about discrepancies in their paycheck over the hours worked, the hourly wage earned, or the lack of providing a pay stub so that the employee can check these, they are protected by the law. That does not mean that an unscrupulous employer won’t fire him over it, but it does mean that if the employee will have the right to seek compensation for wrongful termination if that happens. Rex A. Christensen practices employment discrimination law in Gilbert, Arizona. He can be reached at [nap_phone id="LOCAL-CT-NUMBER-1"]. This article does not constitute, and should not be considered, legal advice, and you should consult with an attorney regarding your own specific legal matters. The existence of this article or your reading of it does not create an attorney-client relationship. Neither the Christensen Law Firm nor any of its attorneys may represent you without first establishing that doing so will not create a conflict of interest. Rex A. Christensen is licensed to practice law in Arizona only.]]> On Behalf of The Christensen Law Firm <![CDATA[Keeping customer complaints to a minimum]]> https://www.rexachristensen.com/?p=48737 2026-03-24T07:00:52Z 2026-03-24T07:00:52Z keeping customer complaints to a minimum. In practical terms, how can you go about doing this?

Be open to feedback

As the boss, you can implement policies, procedures, staff training and much more. However, one of the best ways to get to know your customers is by inviting feedback. Technology can be utilized to help you with this. Customers don’t have to take up much of their time having in-depth conversations with your staff. Instead, you may consider offering an online feedback questionnaire with each purchase or interaction. These can even be done anonymously so that the customer feels secure.

Managing expectations

You have a reputation for delivering on your promises, and as you expand, this is something you want to keep. Many companies fall into the trap of making unrealistic guarantees in an attempt to fend off the competition. If you promise to deliver something for a client and don’t fulfill this guarantee, this is likely to reflect badly on your company and you’ll probably see an increase in complaints. Generally, it’s much better to be open and honest and stick to your end of agreements. Keeping customer complaints to a minimum can not only assist your profitability but may also reduce the risk of potential litigation. If you are involved in any kind of business dispute, it will benefit you greatly to seek some legal guidance.]]> by Rex A. Christensen <![CDATA[Five Dangerous Myths About Mechanic’s Liens]]> https://www.rexachristensen.com/?p=48739 2026-03-24T07:00:48Z 2026-03-24T07:00:48Z Myth 1: Any Contractor or Supplier Can Claim a Lien. Only those who properly complete lien documents, including a Preliminary Twenty-Day Lien Notice, may claim a lien. In addition, a subcontractor or supplier to a sub-subcontractor (i.e., a third-tier subcontractor), as well as contractors not licensed to perform the work, may not be entitled to a lien. See A.R.S. 33-981(B) & (C). Myth 2: Payment Is Guaranteed If I Have A Valid Lien. A construction lender has priority over other lienholders if its deed of trust is recorded within ten days after labor or materials are first supplied to the property. A.R.S.33-992(A). For example, suppose a supplier holds a valid lien for materials supplied from May 10th through May 18th, and the bank recorded its loan documents on May 19th. Later, the owner defaults on its loan, and the lender forecloses. Because the deed of trust was recorded before the ten-day window expired, the lienholder will be paid only if there are funds remaining from the sale of the property after the lender has been paid in full. Myth 3: A Mechanic’s Lien Is A No-Lose Proposition. On the contrary, a mechanic’s lien will not help if the contractor or owner has a legitimate claim that the contract was not satisfied. In addition, if the lienholder has not complied with the lien statutes, if the value of the work is overstated, or if the lien includes amounts not allowed in a lien, the lienholder could be liable to the owner for placing an illegal lien on the property. See A.R.S. 33-420. Myth 4: A Lien Guarantees Quick Payment. If the work was performed well, the owner or contractor will probably pay whether or not a lien has been claimed. However, if the quality of the work is disputed or if the job has been financially mismanaged by the owner or contractor, then there will likely be a fight over money regardless of the lien. The lien does not ensure prompt payment, but merely provides another weapon in the fight for payment. Myth 5: Lien Paperwork Is Merely A Clerical Function. The mechanic’s lien statutes are highly detailed, and the failure to meet even one of the technical legal requirements may nullify the lien. Completion of the lien documents may be assigned to clerical staff only after the proper procedure for processing liens in-house has been established. However, the lien process should always be supervised by knowledgeable management or outside counsel. The mechanic’s lien process is full of legal trapdoors and requires the lienholder to jump through a series of statutory hoops. Despite these difficulties, a valid mechanic’s lien can provide that last bit of leverage that can be the difference between getting paid on a job and writing it off as a loss. Rex A. Christensen practices employment discrimination law in Gilbert Arizona. He can be reached at [nap_phone id="LOCAL-REGULAR-NUMBER-1"].]]> On Behalf of The Christensen Law Firm <![CDATA[Do you personally have to pay business debt?]]> https://www.rexachristensen.com/?p=48738 2026-03-24T07:00:48Z 2026-03-24T07:00:48Z Debt is something that can keep people from taking risks and making business decisions, simply because they worry about having to pay back that debt if the business doesn’t pan out. The amount of money needed to start a business might be so great that the individual knows they could never pay it back on their own. But would you even have to do so? If you take out a business loan and things don’t go as planned, can the creditors come to you and ask for you to personally cover the money that you borrowed?

Did you start an LLC?

This question is why it’s so important to think about the different types of corporations you can form. If you started a sole proprietorship, for instance, then you certainly may have to pay off the money that you borrowed. That money is still in your name and you are responsible for the debt. You would either have to pay it off or you may have options to use bankruptcy to eliminate that debt. But if you started a limited liability company, then you can take out loans in the name of the business. Your company is then responsible for paying back these loans on the set schedule, but you are not personally responsible. If the business goes under and cannot afford that debt, your creditors are not going to come take your savings, your house or any of the other assets that you own. The LLC creates a level of division between you and your company so that you don’t have to worry about this type of financial risk.

Setting it up

Because it’s important to know that you set up your company properly and that you are financially protected, be sure you are aware of exactly what legal steps to take.]]> On Behalf of The Christensen Law Firm <![CDATA[Should you buy a business or start one?]]> https://www.rexachristensen.com/?p=48741 2026-03-24T07:00:46Z 2026-03-24T07:00:46Z If you're looking to start out as a business owner, you're faced with one important question. Should you start your business yourself and build it up over time, or should you go out and acquire a business that already exists? There are pros and cons to both, and so it's important to consider exactly what each will give you.

Advantages to buying a business

One of the biggest advantages of buying a business is that a lot of the work has been done for you. The business may already have solid branding and name recognition. Supply lines may be in place so that you can get parts and materials. The business may already have employees who know how to do their jobs and don't require more training. You are looking to grow the business and make it better, but you don't have to start from scratch. You can step right in and start earning money immediately.

Advantages to starting a business

When you start a business yourself, one of the main advantages is that it's not nearly as expensive, at least in most cases. Buying an existing business can be very costly and is simply not realistic for many people. But you could start your own business with a small investment and work on it on the side as you help it grow. Granted, this may mean it takes you a lot longer to get where you want to be, but it can be seen as a safer move, financially speaking. No matter what you decide to do, take the time to look into all of the proper legal steps to make this go smoothly. ]]> On Behalf of The Christensen Law Firm <![CDATA[How do I terminate a business partnership without paying through the nose?]]> https://www.rexachristensen.com/?p=48740 2026-03-24T07:00:46Z 2026-03-24T07:00:46Z A business partnership can open the door for amazing opportunities. However, as with any other relationship, it is not uncommon for business partners to get into a dispute from time to time. Usually, most disputes can be resolved and the partnership continues. However, there are times when a partner may want out of the business relationship. Of course, leaving a business partnership can greatly impact all the parties involved. As such, it is important that you figure out how to make this breakup as painless as possible. Here are three tips that can help you end a business partnership amicably.

Look out for the warnings

Sometimes, the warning signs of a troubled partnership can be quite subtle. If you notice signs such as inconsistencies, a breakdown in communication or a sudden lack of focus on the business’ goals, do not look the other way. Taking note of the signs of a potential breakup allows you to prepare for the exit before things become messy.

Avoid a hardline position

It is okay to come up with a list of issues you want to be addressed before the partnership can be dissolved. While at it, ensure that you prioritize these issues from the most critical to the least important. This will help you negotiate a better settlement when dissolving the partnership. Additionally, this also helps you reach a compromise on issues that are less important, thus building the goodwill to resolve critical issues like disposing of business assets.

Review the partnership agreement

Every partnership agreement comes with an exit and dissolution clause. Knowing the rights and obligations of each partner during the dissolution will help you craft an exit strategy without causing much drama or suffering the negative financial implications of the exit. A breakup is never easy – even in business partnerships. Knowing your rights and obligations to the partnership can help you keep emotions out of the way while ending a business partnership.    ]]> On Behalf of The Christensen Law Firm <![CDATA[Sole proprietorship versus limited liability company]]> https://www.rexachristensen.com/?p=48742 2026-03-24T07:00:45Z 2026-03-24T07:00:45Z sole proprietorship and the limited liability company. Both of these are good for businesses that are just opening, but the limited liability company offers some protections that the sole proprietorship doesn’t.

What is the primary difference between these two business structures?

The primary difference between the sole proprietorship and the limited liability company is the division between business assets and personal assets. The sole proprietorship doesn’t provide any division between those two, which means that if someone successfully sues your company, they can lay claim to your personal assets. A limited liability company establishes a dividing line between these assets, which means that the person can’t lay claim to your personal assets if they successfully sue your company. Some people believe that insurance coverage can help to prevent claims on their personal assets after a business lawsuit. While it’s true that the insurance may kick in, it’s not worth the risk for companies that come with considerable risk. Small business owners should carefully consider establishing a limited liability company to enjoy the protection of that asset division. Anyone who’s starting a business should ensure they’re doing what they need to protect the company from legal actions. There are many ways to do this. One of the first that you need to consider is the structure. Working with someone familiar with this matter is beneficial so that you can draw from their knowledge and use it to help your business move toward success.]]> On Behalf of The Christensen Law Firm <![CDATA[What should you include in your construction contract?]]> https://www.rexachristensen.com/?p=48744 2026-03-24T07:00:42Z 2026-03-24T07:00:42Z When a client contacts you to complete a job, you’ll likely give them an estimate for the project. The client then decides if your company or another will get the job. Clients who hire you for a job should expect that they’ll have to sign a contract.  A construction contract protects both parties from potential problems. It’s imperative that you have concise terms that can help you to protect your business if the client claims you breached the contract. 

Clear identifying information

Both parties must be clearly identified. You should also outline the project that you’re completing. Include as much information as you can about this so the client can’t come back later to claim that you agreed to do more than the contract stipulated.

Firm payment schedule

Put the information for the payment schedule in the contract. Write out when the initial deposit is due and include any subsequent payments. Having clear deadlines is important so you have them to fall back on if the client doesn’t pay.

Resolution clause

You may want to avoid litigation as much as possible. Using alternative dispute resolution methods, such as mediation, can help to prevent this from occurring. Make sure that you have those clearly listed in the contract so you can enforce it if the time comes.  Taking the time to get a good base contract together can make it much easier for you to utilize the contracts when your clients hire you to complete a job. Make sure that you always have the terms of the contract listed as agreed upon. The last thing you want to deal with is a messy legal situation because of the differences in a written contract and a verbal agreement. ]]> On Behalf of The Christensen Law Firm <![CDATA[Is now a good time to sell your company? ]]> https://www.rexachristensen.com/?p=48743 2026-03-24T07:00:42Z 2026-03-24T07:00:42Z Taking the leap to launch your own business has been one of the most rewarding things you have ever done. You built a successful brand, have made profits and given others employment opportunities.  With that being said, there are few business owners who run their companies forever. Recognizing when it’s time to move on can be as important as anything else. Is now the right time for you to sell up? Outlined below are some important factors to consider:

Selling as a sign of your success 

You started the business as a side project, to earn some extra money and utilize your knowledge and skills. Soon, you were making enough to be able to quit your job and focus fully on the company. Now, the business continues to expand. This was never your intention and you’re finding the expansion a little overwhelming. Going global was not your ambition, but it looks like that’s the way things are heading.  If you’re content with what you have done, then there is no shame in passing the company on to someone else. Another party may have the drive and vision to take what you started to the next level, giving you a fair price to step aside. 

Your own ambitions 

Of course, you may have the ambition to build a multinational company. While your current business is successful, it’s a niche market that is quite small and localized. There are plenty of potential bidders out there looking for successful small businesses. Selling up could provide you with some capital as well as the time to move on to your next global venture.  If you are considering selling up, then you want to make sure that you maximize the price of the business. Having legal guidance behind you will help ensure that you don’t get short-changed. ]]>