Running a business requires the help of law professionals from forming the business to managing employees and even in the case of bankruptcy. Business and commercial law are essential parts of a functioning business, so if you plan on starting a business, this is useful information you should know.
Business Formation
When starting a business, there is a lot of legal paperwork to sort through. Depending on the type of business, each one is unique and different and has its own legal needs. The main categories of businesses are sole proprietors, partnerships, corporations, and LLCs. Each of these businesses varies in their legal needs: sole proprietor businesses require little legal aid because there is no separation between the person and the business because the person is the business. This makes the business owner personally liable if anything goes wrong, meaning that they cannot blame and try to sue other entities if something goes wrong or the business goes under.
Forming a partnership or a corporation requires much more legal intervention at the beginning because it encompasses the merging of two or more business entities. This means lots of legal negotiations and contract formation. Similarly, LLCs, or Limited Liability Companies, are a combination of both. They enjoy all of the benefits of a partnership with the minimal liability of a corporation, giving the business owners more choice in how they want to run the business.
Writing Up Contracts
Forming a business requires planning and organization around operations, hiring, and production of products or services. No matter what kind of business you are starting, commercial and business law contracts can be drawn up to your specific needs. These contracts hold vendors accountable to your business and ensure that employees are clear about their responsibilities, pay, and work conditions. They are essential to keep a business running and prevent it from encountering certain legal issues. With the right legal team, your business can have all of its contracts drawn up and signed under one roof, starting the business process off on the right foot.
Intellectual Property Rights
Big corporations and small business owners may both have intellectual property rights if they have created a new product or service. In order to apply for patents, licenses to distribute, copyrights, or trademarks, businesses should work with business and commercial lawyers who can negotiate with the institutions that give out these kinds of titles. This is an important way to safeguard your business’s ideas and keep your revenue strong if you are marketing a product or service that no one else has ever thought of before. Business and commercial law can also come into play if a rival business tries to steal your intellectual property. Your attorneys can take them to court and that can lead to monetary compensation as well as intellectual property protection.
Bankruptcy
Businesses that have a rough patch and may have to file for bankruptcy can seek legal assistance to help them through this hard time. Business lawyers can help walk you through bankruptcy law so that you can file correctly.
The business world is intertwined with the legal world, so if you want to start a business, you should be as well versed in business and commercial law as much as possible, especially regarding your specific type of business.