Business Law

Talking about business laws in microscopic detail would need a couple of months of your time! There is indeed a plethora of legislation that governs small businesses, ranging from state to county laws. Some are relevant to your business even today whereas others are outdated and have not been enforced since the early part of the last century!

It is not possible for any single entity, including your local law enforcement department to know them all. Yet, it is vital that you are familiar with at least the most important laws that pertain to your business. As usual we’re here to help.

Business laws fall into certain categories as listed below:

o Business formation laws – these laws pertain to the structure of the business. For example a sole proprietorship is regulated very differently from a corporation.

o Tax laws comprise laws pertaining to all taxation issues, whether it is the filing of returns or the payment of sales tax, corporate tax and other similar levies.

o Employment laws – these govern recruitment and retrenchment of employees, wages & workers’ compensation, unemployment benefits, workers’ rights and related issues.

o Trademark and patent laws – these laws pertaining to ownership of intellectual property such as inventions, trademarks and patents.

o Environmental laws – Companies engaged in the recycling of material and the discharge of hazardous waste must comply with environmental regulations.

o Consumer protection laws – these protect the consumer from fraud or unfair business or advertising practices.

Headache, already? Here are a few tips to help you deal with it.

One size doesn’t fit all. We just talked about some of the important legal categories under which you will find regulations that affect most businesses. In addition, specific laws may apply depending on the type of activity involved. If, for example, you are selling company stocks you will need to adhere to the Securities Law, but for a medical practice, there’s an entirely different set of rules that come into play. State laws may also dictate how contracts and legal documents are to be written and enforced.

Start at the beginning. Just as you craft a business plan in stages, look at the whole legal puzzle bit by bit. Begin with the laws pertaining to the basics of starting a business. Do you need a business license or a special permit? Are you planning to hire employees or will you go it alone? If your business sells goods, it will need to pay sales tax. Look at each business aspect carefully to understand which category of laws apply to it.

Know only what you need to. If you are in business by yourself, for example, you won’t need to bother with laws governing workers and staff until you are ready to hire additional people. Likewise, if you are in a service business, you typically won’t need to bother yourself with removal of hazardous waste.

See the bigger picture. As your business grows, so will the number of applicable laws. Always examine the legal angle when you plan new projects and initiatives. Also, discuss all potential significant legal matters with your advisor.

Ensure compliance. Be unafraid to ask questions of your legal advisor and do not assume something is legal just because it is a common trade practice. Also talk to the local Chamber of Commerce or other business owners to make sure you are on the right side of the law.

Make amends. Finally, should you find that you’ve contravened a law without intending to, take remedial measures. The law is quite lenient with first time offenders – of course, it also depends on the nature of the violation.

Having to deal with laws and legislation may seem a drag, but there’s no denying their importance. Taking adequate steps to ensure that you have to run into them only as much as you need to!

Running a business – whatever type of business it may be – is not an easy task to do as this involves all the complexities of B2B and B2C relation. This is the main reason why every step you make, as a business owner, needs careful planning before it is executed to ensure that no problem will arise along the way. You need to make it sure that all transactions you make comply with all the legalities and technicalities as mandated under the law. But how can you do that when you are not an expert in business law? Well, business lawyers (persons who specialize in business law) can surely help you on that and there are many good business law firms in town that offer legal services for various businesses. But what are these legal services you can get from these firms? You can have the following:

Licensing – this is one of the primary requirements when putting up a business and a business lawyer is the right person that you should work with when obtaining license to operate, he can give you legal advice and can work in your behalf to ensure that your business complies with the licensing laws.

Entity Formation and Infrastructure – under this service, a business law firm can assist you with the formation and dissolution of various forms of entities. It can also help for the establishment of the right infrastructure based upon your business’ needs. Legal works such as shareholder agreements, buy-sell agreements, stock option plans are some areas that a business lawyer can help you with.

Mergers and Acquisitions – you can ask for help in dealing the difficult process of closing mergers, acquisitions, and other similar transactions.

Commercial Transactions – a business lawyer can also help to address your need in negotiations, structuring and implementation of various commercial transactions (e.g. manufacturing, development, consulting, and distribution agreement).

Capital Raising – a business law firm can also help you with business transactions like debt and securities and other private placements. It can also help in preparing the necessary legal requirements that must be complied with before staging any capital raising transactions.

Bid Protests and Dispute Resolution – this is another service you can get; they can also represent you in dealing with the complex process of bid protests and dispute resolution, which could include prosecuting and defending your business based on your legal rights.

Business law is one of the branches of the huge field of law. There are many things one has to keep in mind when starting a business; let it be a small or a large business. Breaking these laws may land you in deep trouble, so it is always advisable to have some basic knowledge of both small business law and business corporate law. With this knowledge, you are sure of being able to run your business smoothly without any hindrance from the law whatsoever!

One of the most important areas to consider in business law is employment law. If you don’t comply with all the employment laws and regulations, it is highly likely that you will end up in lots of trouble! There are different laws that actually rule the employment basis of both the regular employees and the contract employees of a business. Some of the employment business laws that have to be met by you are FLSA, the Fair Labor Standards Act, The Immigration Reform and Control Act of 1986, Americans with Disabilities Act, the Civil Rights Act of 1966 and the Equal Pay Act of 1963. However, these laws are not connected to the various state employment business laws that you may find to your business! These laws are a different thing altogether. To confirm that your business meets all the employment laws, it is always better to checkup with your HR department.
To run a business, it is important to have a business permit or a license. If you do not have one, there is a high possibility of you having to shutdown your business and to pay hefty fines and penalties. Moreover, in addition to federal business law it is required that you meet the state business law regulations too. And if you have an international based business, you have to be aware of the different international business laws and how they can affect your business, you and your bottom line. You at least have to meet the general international business laws, import laws, any specialized export laws and laws of the country you maintain business with.

Those running online businesses may be of the impression that there are no business laws pertaining to the internet. However, this is not so. There are many internet and online business laws that have to be followed to maintain any online business. The reason for these laws is that the internet explosion over the past decade has forced the government to introduce internet compliance laws to maintain some law and regulation over the internet. So if you by any chance run a website make sure that you abide the internet business laws. If you don’t do so, there is a high possibility of your site being shut down and of you, in the mean time, facing criminal prosecution and huge fines.

Remember that it is not advisable for you to try and comply with all the business laws on your own. There are numerous laws, and the best mode of avoiding falling into any trap would be to get the help of some professional business law firm. These tips are just to give you an idea of the types of business laws existing. However, even if you do hire a business law firm, it is also better, and important for you to have some basic knowledge of business laws!

If ever you are wondering what particular services you can get from a business law firm, the following can help answer the questions you might have in mind. I have gathered some of notable legal services below.

A business law firm can help address issues concerning the following:

Civil litigation

A business law firm can help in civil litigation. This has something to do with addressing issues like purchase and sale contract breaches, service and supply contract breaches, shareholder and partner disputes, trade secrets, fraud, etc. It can provide representation to clients in all forum of dispute resolution, including jury trials, arbitration and mediations.

Construction Law

It is also able to provide client support in all aspects of construction law including contract review, bid protests, construction claims, prevailing wages and labor disputes, negotiation through project assistance, business formation and licensing. Dispute resolution can be through litigation, mediation or arbitration.

Corporate and business

For corporate and business issues, it can help clients in entity formation and infrastructure, commercial transactions such as manufacturing and supplier agreements, merger and acquisitions.

Estate planning, trust and probate

Clients go to business law firm for estate planning, trust and probate issues. Some of these issues that a law firm handles include assets and healthcare decisions, ensuring children, ensuring estate, issues on concerning inheritance, etc.

Intellectual property

For intellectual property issues, a business law firm can help in litigation, which includes trade secret, unfair competition, patent, and the like. It can also provide assistance for your technology transaction needs like licensing, manufacturing, development and distribution agreement.

Labor and employment

For labor and employment, it can represent employers in all facets of employment law, which include defending employment discrimination, wrongful termination, unfair completion, sexual harassment, and the like. It can also help in labor relation issues such as includes organizing union campaign and terminating union contract, etc.

Real estate law

A business law firm is also capable of providing assistance for real estate issues such as property purchase and sales, real estate litigation, commercial leasing, title issues, easement and license dispute, as well as real estate broker and agent commission disputes.

So, now that you know some of the services a business law firm can give the next challenge you may face is knowing which particular legal service provider to choose the moment you will need these services. As a general rule of thumb, it is imperative that you are able to check its reputation and the following criteria can help: years in service, number of complaints, number of good reviews from both previous and current clients, and certifications.

The generic term “business law” covers every aspect of commercial interactions today. In its broadest sense, the term can be defined as the group of laws, regulations, and practices that apply to commercial entities such as companies, corporations, and partnerships. These statutory requirements involve the entire spectrum of interactions from forming a new enterprise, negotiating contracts, arranging financing, meeting all government requirements, and any other topic or activity that impacts, directly or indirectly, the operation of a business.

In this highly specialized area, the legal practitioner has to have a broad spectrum of knowledge in order to represent the interest of his or her commercial clients adequately. It is easiest to view this type of practice from the life cycle of a business operation to understand its scope.

Starting a New Enterprise

One of the most important aspects of business law is how to set up a new corporation or company. The law of corporations, local licensure requirements, as well as dealing with contracts for the space that the company will occupy, all require various legal formalities to be met even before the doors can open for the first customers. Employment laws for employees have to meet federal and state requirements.

Financing agreements are an essential part of the stage of the business cycle. Legal practitioners will negotiate with lenders, ensure that all forms are filed properly with the Federal, State, and Local authorities, and help establish the necessary record keeping that may be required for that particular operation.

Day-to-Day Transactions

Once things are up and running, business law attorneys will be involved in many daily transactions. Handling the negotiations of contracts and representing the client in various legal actions that may involve issues of breach of contract, liability, and statutory violations are just some of the matters where lawyers in this field may be called upon.

As the company grows, concerns involving secured transactions, securities (stocks and bonds), SEC filings, and other related subjects would also become part of a commercial lawyer’s practice. As governmental regulations continue to become more complex, making certain that a commercial client is in compliance requires an even higher level of diligence from practitioners in this legal field.

Changing or Merging the Operation

One of the most dynamic areas of business law today is that of mergers and acquisitions. It is difficult not to look at the financial news without learning about the latest buy-out, merger, or hostile take-over of one company by another. At the heart of this activity are the lawyers who represent the concerned parties. In addition to involving the transfer of ownership and financial arrangements, it is often necessary to obtain government approval to complete the deal. It is no wonder that specialists in this area of the legal profession are highly sought after for their expertise.

All aspects of 21st-century commercial enterprise involve the application and practice of business law. Navigating the complex legal waters is best accomplished by the retention of a competent, experienced counselor who understands the legal complexities of running a successful operation today.