Business laws are a set of rules that are directed towards features of business, such as the formation of a company, mergers, and acquisitions (the absorption and control of one company by another), bailments (the transference of physical possessions from the bailor to the bailee), sales of consumers, insurance, shareholder rights, property, employment considerations, immigration law, contract drafting and negotiations, antitrust laws, intellectual property, taxes, and bankruptcy. Generally, business law is about governing deals made between individuals or companies associated with commercial matters.
State and Federal Regulation
When regulating business law, state and federal law both play a role. The federal government focuses on the stock and investment aspects of business law, protection in the workplace, laws regarding employment, and environmental safety. States can add to federal laws already set in place, and they can also make their own laws in their respective areas. For example, states can require licensing for specific businesses or professions and make policies in order to form and run a legal business.
Forming a Business
The formation of a business is where business law begins. A business becomes a legal entity once the proper paperwork has been filed, making the government officially recognizing them as one. A business lawyer, like a business lawyer in Arlington, TX, can help a business pick which entity is in their best interest; however, choosing the type of entity differs from state to state, as well as the process for filing the paperwork.
After a business is in operation, employees need to be taken into consideration. Business attorneys can give advice on how to hire and terminate employees. Businesses need to be aware of how to legally and professionally discipline and deal with disputes regarding employees. They also need to know what their terms of pay and benefits will look like, as well as payroll taxes and deductions.
Business law and immigration law may overlap when it comes to hiring employees, as a business may want to employ people from other countries. They may need international employees temporarily for an event, or they may need them full-time. Despite the reason, businesses need to know how to obtain the employees they want while keeping the federal immigration law in mind.
Contracts are prevalent in businesses. A lawyer must help draft a contract that is in the interest of their client. A contract can be a lease agreement, a purchasing agreement, employee contracts, and more. Antitrust violations happen when companies want to expand, but they do not go about it in a legal way. To avoid these violations, lawyers will educate clients on what behavior may create problems for them. Intellectual property deals with a business’s invention of a new product. Business lawyers who deal with intellectual property help companies register copyrights as well as enforce them in order to ensure that they profit from their invention.
How a Business Lawyer Can Help
Business lawyers help to minimize a business’ taxes, as well as help them act in accordance with tax requirements. They make them aware of employee taxes and deductions and special tax forgiveness or waivers that may be applicable to a business depending on its location and the type of industry it is in. Business lawyers can be there from the beginning of a business to the end of it. When a business’ financial burden is too great, lawyers help them figure out what actions need to be taken in order to help them out of it, and sometimes filing for bankruptcy is the only viable option. Since there are many different types of bankruptcy filings, a lawyer can help the business determine which one to choose, and also help them comply with its requirements.
Thanks to Brandy Austin Law Firm, PLLC for their insight into some of the different components of business law.