A business is a person under the law, with rights and obligations dictating how to start, buy, manage and close or sell the business. Most owners are savvy enough to know and follow the general business laws. However, operating a business will necessarily require the advice of an attorney to ensure the full protection of the laws and to plan profit margins.
The umbrella of business law first includes deciding the type of business organization. Will it be a partnership? Will it be a corporation or limited liability corporation? The type of entity will affect the federal income taxes and, of course, reporting requirements.
Next, the type of business will determine whether any special type of license is required, and the local and state laws will determine how to advertise and operate, including for example consumer protection laws.
What if you are deciding to buy a business? Should you buy the assets, real estate or just the stock? What about the current employees? Property law, tax planning and employment law issues govern the details you should consider.
Every business is based upon contracts and you will need to ensure you are protected by legally binding agreements. How do you plan for a potential breach of contract? A good business will plan for contracts with a good understanding of the content and a strategy for future events.
Finally, managing a business involves employment and contract law. How to hire, fire and discipline employees. What kind of benefits, if any, should a business offer to its employees? Do all employees need to be treated the same? State and federal laws govern the daily operations and strict compliance is necessary to avoid the pitfalls of discrimination and other violations of the laws.