Business law

The Principles Of Small Business Law

If you are the owner, or the prospective owner of a small business, you are going to have to understand and abide by how small business law pertains to you. The very first item to be considered is the structure of your business. Your decision here can play a very important part in how the business is operated and how it reports its profits and losses. It can be set up as a sole proprietorship or as a limited liability company (LLC), which is usually preferred, or as a regular C corporation.

Any business agreements between owners should be handled by an attorney as well. These agreements can define duties and responsibilities. There may be stock agreements that will need to be drawn up to bring order to that area of the company. Sales agreements for sales people, non-compete contracts, and employment agreements are also items that will need to be in writing.

If any buildings are to be purchased or leased, an attorney will need to be consulted to advise the owner in this area as well. A legal error here could be very costly and devastating to a small business. There may be zoning laws that would come into play in the purchase of a property, and they may not come into play until years later when the business decides to make a change or addition to the property.

There may be local laws that pertain to advertising and marketing that would cause problems, unless fully looked into from a legal standpoint. Hiring and firing of employees may come under the jurisdiction local labor laws, and having an attorney that understands small business law in this area can be very important in being certain that proper procedures are followed. A Dallas business lawyer can weave through the fine prints  to make sure your business is following what is stipulated in local laws.

One area of small business law that every business owner needs to be sure is taken care of is the collection and the payment of any local and state sales taxes, if applicable. If you have an online business of any kind, there is more and more emphasis in this area for the collection of sales taxes, and you will need to be kept up-to-date in this area.

If you provide employee benefits, you will need to comply with ERISA, a federal law that protects employees in this area. If you manufacture anything, the OSHA regulations monitors the safety and health of your employees, and you will also have to be aware of any environmental issues you may be causing.

In summary, being in business today requires the business owner to be on top of a great many things that legally can help or hurt, and with the help of a good attorney, it can be very difficult to navigate.


The Effects of Business Law on Companies and Individuals

Business law is often referred to as mercantile or commercial law, and governs many of the business transactions and dealings that happened between commercial industries and individuals. Typically, business law will fall into two specific areas. These include commercial entity regulations such as partnerships, company laws, and bankruptcy. The other area involves commercial transaction regulations through contracts.

Business laws are essential to many companies in their efforts to perform legal transactions. It is often based on legal fundamentals including personal responsibility, and liability. Nearly every statutory rule in business law is designed to protect the investor, consumer, and creditor.

Sole Proprietors

Business law uses an effective tool for creating and regulating legal business entities. This could include a sole proprietor, who bears all responsibilities and risks of operating a business on their own, along with taking profits. The laws are designed to help limit liability.


In designing a partnership, business law is used to define how to share profits and manage the company. It defines exactly how liability of all the debts of the firm will be jointly split, and how any tortious action or contracts of the firm will be handled appropriately. Business laws help define fiduciary relationships between partners, and how to legally interact with one another.

Business Contracts

In fact, business law affects every day lives when contractual dealings have been undertaken. In most incidences involving business, a contract is a specific type of commercial bargain that it usually involves exchange of services or goods at a price. The contract provides a legally binding agreement that is made by at least two individuals or companies.

The contract under business law is enforceable by judicial courts. The contracts designed under the laws can be oral or written. There must be an unqualified acceptance of the offer, along with the intention to create a legally binding relationship. In addition, the contract must include a valuable consideration (a financial amount) and the general consent to do business outside any aspect of fraud.

Business law, that helps design contractual relations, serves as the cornerstone of nearly every type of commercial transaction. It is often the scope of today’s business laws that regulate the sale of goods and products, the implication of terms and conditions, the effects of business performance, and any breach of a contract, with the potential of any remedy to a party that shows harm or damage.