1. A Basic Legal Guide for Small Businesses Bing Rui Founding Principal brui@uschinalawgroup.com (408) 777-9768

2. 2Copyright 2003 brui@uschinalawgroup.com (408)777-9768 What Entity? Sole Proprietorship Partnership Limited Liability Company LLP Corporation

3. 3Copyright 2003 brui@uschinalawgroup.com (408)777-9768 Considering Factors in Choosing the Right Entity Personal Liability Management and Control Transferability Duration Tax

4. 4Copyright 2003 brui@uschinalawgroup.com (408)777-9768 How to avoid personal liability as a shareholder? “Alter Ego”

5. 5Copyright 2003 brui@uschinalawgroup.com (408)777-9768 How to incorporate a business? Analysis of Entity Form Name Reservation Articles of Incorporation Bylaws Initial Shareholder Minutes Initial Board Minutes

6. 6Copyright 2003 brui@uschinalawgroup.com (408)777-9768 How to incorporate a business? (cont’d) Stock Issuance Employer Identification Number Business License and Permit Bank Account Insurance

7. 7Copyright 2003 brui@uschinalawgroup.com (408)777-9768 What to discuss with your partners? A Buy-Out Agreement Events Triggering A ‘Buy-Out’ Attempts to Sell Death/Divorce/Bankruptcy Termination of Employment Control and Ownership

8. 8Copyright 2003 brui@uschinalawgroup.com (408)777-9768 How to protect your intellectual property? Trademark Patent Copyright Trade Secret Confidentiality Agreement Intervention Assignment Agreement Anti-competition Clause

9. 9Copyright 2003 brui@uschinalawgroup.com (408)777-9768 How to avoid employment lawsuits? “At Will” Offer Performance Evaluation No discrimination Do everything legally! Worker’s Compensation Overtime Pay Immigration

10. 10Copyright 2003 brui@uschinalawgroup.com (408)777-9768 Tips: Get it in writing! Write it down! Don’t sign anything if you don’t know the consequences!

11. 11Copyright 2003 brui@uschinalawgroup.com (408)777-9768 BING RUI ATTORNEY AT LAW U.S.-China Law Group Direct Line: (408) 777-9768 E-mail: brui@uschinalawgroup.combrui@uschinalawgroup.com Website: www.uschinalawgroup.comwww.uschinalawgroup.com