As an entrepreneur, it is crucial that you be aware of all the regulations that apply to your line of business. Business law is a branch of legal studies that specializes in learning all the rules that dictate how to create and manage a venture. Here's an overview of what this legal practice entails and why it is necessary in the modern world.
Disciplines of commercial law
Commercial law is quite broad, but it focuses on a few key disciplines that are essential for the normal running of an enterprise. The varieties mainly include taxation law, intellectual property, employment, and sales law. An attorney with a specialty in any of these areas will assist the entrepreneur to avoid future lawsuits as they interact with other players in the market.
New venture formation regulations
It is mandatory for amateur entrepreneurs to be conversant with existing laws before they open their doors to clients. Businesses can exist in a variety of forms namely corporations, partnerships, limited liability companies and sole proprietorship. Attorneys are therefore necessary to assist their clients to fill the requisite documentation and file them with the state authorities.
Managing internal operations
A business lawyer will come in handy where an entrepreneur needs to outline the domestic agreements that will govern how the entity operates. This measure is mostly applicable to the case of a limited liability company. A memorandum of association is a sensitive document that details how owners will share profits and losses as well as dividend payouts. When disagreements arise, the stakeholders can always refer to this report for clarification.
Managing Complex transactions
When it comes to commerce, some operations are easy to handle while others are complex. People in the line of intellectual property and image rights do encounter a lot of challenges due to the existence of patents and copyrights. This situation leads many firms to assemble legal teams to provide direction on market developments that influence their operations. Commercial lawyers need to be on red alert to detect any significant changes that happen in the business world.
Hiring a legal expert
Legal representation does not come cheap; you will most likely part with a significant amount depending on the caliber of lawyers you assemble. However, this expense is small compared to the cost of non-compliance. You can opt to hire attorneys on a part-time or a full-time basis. Large organizations will have multiple legal experts serving the firm throughout the financial year.