Legal Question in Business Law in California

Re: Leaving a job / Contacting the clients I've worked with.

I have been a seasonal tax preparer in California for 15+ years and have worked at a very small tax office. My former employer/boss just sold the business. I am considering starting my own tax business and would like to bring many of my long time clients with me.

I work seasonally and always become technically laid off/unemployed after tax season, although I've been returning to the same company the following tax season.

In older years, I'd always sign a new employment contract at the start of each tax season. But last employment contract was signed in January 2019 for the 2019 tax season. There was a 2 year non solicit and non compete clause as well has a clause not allowing me to use customer data (name, SSN, addresses, etc after my employment ends). I've continued to work seasonally, but my employer became very "lax" and didn't prepare new annual employment agreements for subsequent years (2020 to present).

And I don't see any clause in the 2 page 2019 contract that it would transfer to any new owner.

The new owner has communicated via one email that he would like me to work again next tax season, I'm thinking this may be a good time to start a business of my own.

I'm wondering if is legal for me to contact my old customers? Is it OK to "announce" my new business and let them know of my new address/email/phone as long as the letter/email is worded correctly? What about phone calls and emails?


Asked on 11/21/24, 1:38 pm

1 Answer from Attorneys
Richard Bryan Richard Bryan Attorney PC

Great question.

Realistically the new owner has little or no recourse against you. That doesn't mean he couldn't try and sue you, which would cost you both money, but at the end of the day he will not win. That being said, my advice as a business owner myself and knowing something about the tax preparation business, is to call the guy up and thank him for his email, and be straight about wanting to start your own shop, and how could you work together. You really need to get clear in your own mind first what it takes to start a business, and whether you're cut out for it; have the working capital and business plan and understand the risks, etc etc.; whatever licenses you need from California or the IRS. Are you straight about all of this?

Hope that helps.

Good luck.

Read more
Answered on 11/25/24, 10:14 am


Related Questions & Answers

More Business Law questions and answers in California