Get a Free Claim Review

Business Law Lawyer

Business Law

The creation and execution of businesses are governed by a set of laws in the US that directly or indirectly impact their profitability and sustainability. These laws impact newly created and existing businesses and regulate business transactions and relationships with other entities in the economic ecosystem. Various legal procedures come into picture when starting a business that requires the advice and guidance of a legal expert. Legal procedures impact the following aspects of a business:

Business Formation

Business laws come into action right at the very outset of starting and setting up a business. In this initial phase, business owners are required to file paperwork and declare the formation of a new entity. This phase is extremely important for business owners who legally enlist their company as a separate entity and shield themselves from personal liabilities for business-related incidents. There are quite a few business entities described under the US legislation, some of the most common types are:

  • Limited Liability Company (LLC)
  • Limited Partnership
  • General Partnership
  • Corporation
  • Non-profit corporation
  • Limited Liability Partnership (LLP)
  • Limited Liability Limited Partnership (LLLP)

The availability of these categories varies from state to state and the filing and documentation process to enlist a company also depends on the state. Enlisting the company under one of these categories depends on an array of factors that should be analyzed in detail.

Responsibility and Profitability Division

Another crucial aspect of operating a business and ensuring the avoidance of litigation filing and legal procedures is the drafting of internal agreements. When multiple parties hold a stake in the business, it is essential that the co-owners sign a legally binding agreement that defines the division of profits and losses, ownership rights, the weightage a particular party in decision making and other important aspects that are required to seamlessly run a business. These agreements are drafted depending on the type of enlisting the business is registered under.

Employment Regulations

Most businesses require employees to operate. However, the hiring and firing of employees is regulated under business laws. Businesses need to ensure that these rules are followed and the regulations regarding employee salaries and benefits are met. Business laws also define the deductions and taxations on employee payrolls which must be ensured.

Consumer Good Sales

If a business is selling and buying consumer goods, it needs to keep up with certain guidelines and regulations to function and operate legally. These laws govern what are the required standards to run a factory to what could be the maximum price to sell a specific product in a category. The Uniform Commercial Code, a model code outlining the guidelines to be followed for commercial transactions, encompasses regulations on the various topics that businesses need to follow and emulate in their practices.

Drafting Contracts and Negotiating Deals

Contracts are an essential element of operating businesses and are required at different stages. From leasing of land to acquiring a smaller business or investing in a start-up, everything requires drafting contracts. These contracts are derived from common law, an unwritten guideline that has developed after years of court hearings, and state statutes. Businesses need to identify the elements of state statutes and common law required for drafting these contracts and couple it with enforcement legislations to make contracts effective.

Besides contracts, business deals can involve the evaluation of complex laws and regulations that can impact its profitability and sustainability. Negotiating deals by overlooking these laws can result in businesses incurring huge losses.

Anti-trust Regulations

If a business is looking to grow, expand, or gain a major share of a market with an acquisition, it should ensure it uses legal ways to do so. Anti-trust regulations and laws are in place to check any business from using unfair or illegal trade practices to wipe out competition and gain a monopoly of a market. Even if a business, unknowingly fails to comply with these regulations it can be subjected to allegations of anti-trust.

Patenting Intellectual Property

Some companies rely on innovative inventions and creative work to generate revenue and profitability. To ensure no other party benefits or misuses the intellectual property businesses are required to patent and copyright their inventions and creative work under the intellectual property and copyright law. These procedures ensure that a business retains control over its invention or work and can monetize it for profit.

Taxes

Business laws in the US also make it mandatory for businesses to file taxes. There are a lot of state-based, federal, and industry-based provisions that businesses can utilize to reduce their tax burden by obtaining waivers and exemptions.

Bankruptcy

Bankruptcies can help businesses figure their way out of bad times and continue operations or get out of terrible financial debt. Businesses can file bankruptcies under various chapters defined in the US constitution depending on their need and plan of action.

Why Hire a Business Lawyer?

Hiring a business lawyer is advisable for owners of small, medium, and large businesses. Here is how a business lawyer can help:

  • Legal counsel can help business owners weigh the pros and cons of different enlisting types and choose the one that is best suited for them. Additionally, business lawyers can help stakeholders customize the enlisting type to suit their requirements.
  • With a dedicated business lawyer at their side, businesses can easily draft internal agreements.
  • Business lawyers also guide business owners in their duties and responsibilities as an employer and suggest them ways in which they can manage employees.
  • With a business lawyer at their aid, owners can easily sell consumer goods while complying with federal and state regulations based on their industries.
  • Business owners can consult their lawyers when negotiating deals, drafting contracts, and easily get contracts drafted to quickly and effectively scale their business.
  • When planning to expand or gain a major share of the market, business owners can leverage the legal expertise of business lawyers to ensure they are not subjected to anti-trust allegations.
  • Having business law expertise empowers owners to quickly obtain patents and copyright their inventions and creative work to ensure they can monetize their creations.
  • The availability of legal resources with in-depth knowledge of the system can aid business owners in obtaining significant tax reductions.
  • Business lawyers also aid owners in exploring all alternatives to get out of financial troubles. If there is no way out, lawyers help owners file for bankruptcy that is best suited to their scenario.

Sign up to The Legal Helpers to find an expert business lawyer today.