Business law is actually a very broad field that primarily deals with several different areas of conducting business. This field of the law basically regulates all these matters including commercial activities, formation and licensing, commercial agreements, business transactions, agreements, registrations and permits, legal proceedings, and other regulations related to business activities. In a more technical sense, this field is known as corporate law. It applies to both private persons and companies engaged in any form of business activity.
Corporate law refers to all forms of arrangements that may be made between persons, organizations or entities and other entities such as creditors, lenders, brokers, trustees or corporations for the purpose of making business transactions, financial commitments, etc. There are three main types of corporate structures to consider:
Sole proprietorship: A sole proprietorship is an entity formed under a state law or through a legal proceeding. An individual may be its owner, partner, director, secretary, employee or agent and it will be its own legal entity.
Partnership: A partnership is an organization where one or more partners are involved. Partners include all shareholders, members and joint-ventures. Its assets and liabilities are divided among its partners and they also share in the profits and losses made by the partnership. In most states, a partnership has to have an authorized general meeting to make decisions or make changes to the partnership agreement.
Corporation: A corporation is any kind of organized business association. A corporation must have at least one or more shareholders and be considered a separate legal entity from the owners. The corporation may carry on various types of activities. In a corporate structure, there are two primary types of entities:
It is important to know and understand the types of business structures that are available to you. This can be done by learning about the applicable laws related to the types of business structures and practices that are applicable in your particular state. You should always consult your lawyer before getting started in any of these business structures.
With all the available business structures, it is best to understand which one is most beneficial for your business. In some states, it is necessary to have an attorney with you whenever you start up a business. The lawyer can guide you on legal matters, such as the formation of your business, the location of your business, and what permits or requirements you will need. for the business to operate legally.
Before beginning any business structure, make sure that it is what you really want. The benefits of one particular business structure may not be enough to justify the costs of having it.
Always research before choosing a business structure, including the pros and cons, so that you don’t get stuck in a business situation that doesn’t suit your needs or budget. A business legal counsel will help you determine which structure is the best for your company, if you doesn’t have one just visit www.dcattorneys.org.