Business Law involves businesses. In general, Business Law deals with the formation of new businesses, the daily operations, its employees, and the issues that arise as existing businesses interact with the public, other companies, and the government.
This area of the law draws on a variety of legal disciplines, including Tax Law, Intellectual Property, Real Estate, Sales, Employment Law, Bankruptcy, Estate Planning, and others. Most Business Law Attorneys are proficient in transactional work and trial advocacy. In a perfect world, your business lawyer is often hired for the preemptive purpose of avoiding future litigation.
To fully understand the role of business law within the legal system, one must view businesses as entities separate from their owners and employees. Similar to individuals, business entities are subject to legal rules designed to protect employees, the public, and the marketplace.
Different types of business may be controlled by different types of laws. For example, Sales Contracts are controlled by and executed in accordance with the Uniform Commercial Code (UCC).
New companies must take steps to comply with the law even before opening their doors for the first time. Business Law Attorneys are routinely asked to form new entities on behalf of their clients by filing the necessary documents with the Secretary of State. Clients may also need assistance choosing the business entity best suited for their needs.
Businesses can be formed as Corporations, Limited Liability Companies (LLCs), Partnerships, and Sole Proprietorships, among others. Most of these business forms can be further customized to meet the needs of the company. Examples include Corporations formed as "S-corps" in order to achieve tax savings, and Partnerships formed as "Limited Partnerships" to allow some owners to participate as investors only.
While the selection of the appropriate business entity will depend on numerous factors, the primary purpose of most entities is to shield owners from individual liability. Operating a business that is not set up to provide limited liability means that the owners are putting all of their personal assets within reach of the business's creditors. By working with an attorney at the inception of the business, individual exposure can easily be avoided.
It is usually recommended that your business attorney should draft the internal agreements that will control how a new company is managed, profits are distributed, or how employees are handled. Every business that has more than one employee should have a employee manual.
A few commercial transactions are within the ability of business owners to handle on their own. However, the best advice is to let professionals do what professionals do. You should focus on building a successful business while the attorney you work with should focus on protecting your business.
Even for savvy business people, problems can develop when emotions become involved. Attorneys can provide valuable insight into a transaction, not only because of their legal training, but also because of the objective nature of their analysis. This allows them to spot issues overlooked by business owners who may be too emotionally invested or busy to legal issues on the horizon.
Jeremiah Raxter, Esq
Attorney & Counselor at Law
27851 Bradley Rd, Ste 145
Menifee, Ca 92586
951-226-5294
www.raxterlaw.com
