Whether you have been a business owner for years or are aspiring to own your own company, legal issues or questions will inevitably arise. There are numerous, if not thousands, of laws dictating how to operate a business. Whether it is a Mom and Pop storefront or a large corporation, it is important to understand the various types of business law. Here are the 4 most common practice areas of business law.
1. Tax Law
From the moment a business is created, tax law becomes an important issue. From formation to income or revenue, it is important to file the proper tax forms with state and/or federal tax agencies. Even unintentional business tax errors can cause business owners costly problems. Even if a business is not facing negative tax issues, a business lawyer may be helpful. The correct attorney can also ensure a business is not overpaying taxes and can work in conjunction with a business’ CPA or accountant.
2. Contract and Litigation Law
Contract and litigation law is often what comes to mind when people think of business law. Contracts and litigation are often closely intertwined with one another. In addition, both of these areas of business law can branch out to extremely specific subcategories depending upon the complexity of the scenario.
However, in general, contract law can be attributed to the formation of legally binding agreements and the execution (or carrying out) of those agreements.
Litigation often comes into play when a dispute arises between two parties. Litigation is often costly, time consuming, and stressful for many business owners. Litigation or time spent in the courtroom is definitely an area of business law that requires the help of an experienced professional. A good place to learn more information is at the Hoffer Adler website.
3. Employment Law
Employees are often the backbone of a company. Employment and labor law is crucial for business owners to understand, no matter the number of employees. Topics such as health insurance guidelines, work conditions, fair pay and hiring practices all come into consideration under employment and labor laws.
4. Bankruptcy Law
Unfortunately, not all businesses are successful. Whether it is a result of economic conditions or poor management, a business may be forced to file bankruptcy. A reputable business lawyer will understand how to successfully navigate the bankruptcy process, file the proper type of bankruptcy, and attempt to “save” as many of the business’ assets as possible.
Whether your business is small or large, business law is an important topic for many entrepreneurs. Although these are perhaps the most common types of business law, there are hundreds of more subtypes of this area of law.