Business Law: Definition, Different Types, Importances, Becoming a Business Lawyer
Business law is the law that governs what happens in commercial matters, and there are two main types: the regulation of commercial entities and the regulation of commercial transactions. Laws have evolved over the centuries, and have had to adapt to changes in technology and society.
Types of Business Law
Here are some of the most common types of business law:
>Employment Law
In today’s modern workplace in particular, it is essential for any company with even one employee to keep up with current labor laws. Are you required to provide health insurance or workers company insurance? Has your business discriminated against an employee, or stood by while an employee committed sexual harassment against another employee? There are many areas in which your company may face significant financial liability, not to mention the potential loss of reputation when employees are treated unfairly.
>Immigration Law
There are more and more occasions when immigration law becomes an issue in modern business. Temporary employees, full-time employees, and those working on special occasions may be from other countries. You need to know if you follow the law when dealing with foreign labor.
FMCG sales
The Uniform Commercial Code contains the laws that govern financial transactions in the United States. The blog deals with everything from contracts to fraud to leases to secure transactions. Ambitious in its goal of unifying the laws in one place, the Code is actually quite complex. Lawyers spend a lot of time learning how the UCC applies to actual business practice and can advise companies on how to stay compliant with the laws while still being productive.
Contract Drafting / Negotiations / Litigation
Whether it’s to rent a property or sell a product, contracts help ensure that the parties making a deal are on the same page. Lawyers can help make sure that your best interests are represented when your business enters into a contract.
Antitrust
Antitrust laws help ensure that different firms in the market operate on a level playing field. Some companies use unfair or deceptive practices in order to gain a greater market share, and it can be difficult to identify unfair behavior in your company. A business attorney can help you ensure that your business operates ethically while helping protect you from unfair actions by other businesses.
Intellectual property
Companies may need to patent unique products in order to protect this business in the marketplace. Otherwise, anyone could sell a product your company worked so hard to make. Creative work will be protected by copyright laws, and you will need to apply for protection if your work is identified with a unique logo.
Taxes
Businesses may have to pay and/or calculate several types of taxes:
Income taxes on company profits, which can be paid as personal income taxes for a sole proprietorship, one-person limited liability company, or through a partnership tax return. Partners who earn a profit from the business must report this income personally as well.
Sales tax on services and/or products. Each state has different rules and there may be more complications when selling across state lines. If your business has state income tax, you will likely be required to set up a system to collect, report, and pay the taxes that you collect on a regular basis.
Property tax on any real estate owned by your business. You may end up paying capital gains tax if you sell company-owned property.
Self-employment taxes, so that business owners continue to pay in Social Security and Medicare. Usually, employers take these taxes out of their employees’ salaries.
Employment or payroll taxes, including FICA Social Security and Medicare taxes and workers compensation taxes.
Dividend taxes for corporate shareholders. This is a type of income tax that depends on the profits received from the company.
Production taxes on some of the products your business uses, such as fuel.
Bankruptcy
Sometimes companies are forced into a bad situation due to circumstances beyond their control. There are several types of options, with different requirements and profiles. A business attorney can help find the best solution to what seems like an impossible problem and will have experience with the advantages and disadvantages of each option.
Examples of Business Law
Here are just some examples of how lawyers can help your business:
Business Configuration
A business law attorney can advise you when starting your company regarding how to form and register your company. You will need to choose your business structure and decide how and where your business will operate. Your attorney will help make sure your business is protected from the start.
Shrinkage
Unless you have some experience with legal jargon, you may not understand all of the complex terms in a contract. Sometimes the parties will try to take advantage of you by introducing clauses that are against your interest or even changing the terms of the contract. Your attorney will make sure that your rights and interests are protected.
Lawsuits
Many businesses don’t consider hiring a lawyer until a lawsuit has been filed, but having a lawyer help how your business operates can help you avoid many lawsuits. Sometimes a lawsuit is inevitable, and your attorney will mitigate the damage to your business. You may want to negotiate a settlement or go to trial and deny liability entirely, and your attorney will help you get through the complex process of litigation.
Cronus Law, PLLC proudly serves residents, families, and businesses in and around Phoenix, Arizona and surrounding cities. Our lawyers have experience solving a variety of legal problems in many areas of civil and criminal law. If you need a flexible and knowledgeable attorney to help you find an innovative solution to your real estate issues, feel free to call us at (480) 739-3421 or visit our website, so you can see our areas of work and learn more about our attorneys.
Why become a Business Attorney?
Business law usually happens outside of the courtroom. There may be a few hearings here or there before boards or regulatory committees get approvals. However, there are very few long and difficult days to spot in the adversarial courtroom. When conflicts occur, the company may not hire its own business attorney to deal with them. Alternatively, they may refer the matter to a litigant with years of courtroom experience.
Because business law focuses on transactions, it’s a great option for lawyers who don’t care about high-pressure courtroom situations. With business law, an attorney can have a full and complete practice without ever setting foot in a courtroom for a litigation procedure. Lawyers who pay attention to detail thrive in business law. Helping a company set policy, complete a registration, enter into a contract or come up with terms on a business transaction often comes down to the nitty-gritty. Lawyers who can focus on detail thrive in a business law preparation.
In-house Consultant or Law Firm
Some lawyers work as employees of the companies they serve. Large companies tend to hire their own team of lawyers. The word for these types of business attorneys is an in-house counsel. They assist their companies in all aspects of business law as per the needs of the company.
Other business attorneys operate their own law firms. They exist to serve companies that may not be large enough to have their own in-house legal team. A law firm may also serve firms in a specialized area of business law. For example, a law firm may exist to assist companies only with their intellectual property needs. Another company may assist a company in setting up a corporate entity and submitting the appropriate documents to the state.