Most people have heard of business law, but many people don’t really know what it is. For the most part, the only people who need to know what business law is are people who hope to start a business themselves. And if you hope to start a business, it is absolutely essential that you have some understanding of business law. This guide will explain what it is and what it is used for.
What Is Business Law?
Business law covers the area of the law that deals with business operations. It is sometimes called commercial law or mercantile law. There are two main categories of business law:
- The laws of business entities
- The laws of business transactions
The first category deals with all the laws that surround the formation and operation of a business. This includes which forms are filed, what fees and taxes must be paid, and what regulations the business needs to conform to. The second category deals with all the laws that surround transactions a business may take part in. These transactions may be between two businesses or they may be between a business and consumers.
What Business Law Is Used for
One of the most important uses of business law is ensuring that a business is fully compliant. Certain kinds of businesses need to follow certain rules, and these rules may be quite complicated. Many businesses choose to have a business lawyer, like a business lawyer in Charlottesville, VA, on staff simply to keep things straight. If you cannot afford to go that far, you should have a business lawyer in mind who you can speak with about any matters you are unsure of. Some of the most common matters where business law crops up include:
- The creation of a business – Making sure every legal matter is taken care of for a business to open initially.
- Employment – In order to have employees, you need to meet certain criteria and provide certain benefits.
- Copyrights and trademarks – If you have some type of ownership over the products you sell, this is especially important. However, this area of the law is still important for logos, brands, and slogans.
- Taxation – Businesses must pay special business taxes every year to stay operational.
- Marketing – There are laws that surround marketing which dictate what you can say and what kinds of claims you can make.
If you hope to open a business, one of the first things you should do is speak with a lawyer who specializes in business law.
Thanks to Dale Jensen, PLC for their insight into business law.