If you’ve ever been confused as to what business law entails, read on. The world of business law is important and vital to countless business owners, as it keeps them safe from a host of issues and problems, and allows everyone to operate with the same rules of running or owning a business. If you’re interested in starting your own company or are considering purchasing a business and are in need of a dedicated and seasoned business lawyer, call Brian Loomis. With many years of experience and passion for providing excellent service for all of his clients, Brian Loomis is committed to you. If you’re in the Springfield, Missouri area, contact Brian Loomis Law now.
Business Law 101
Business law encompasses everything that has to do with starting, forming, and running a business. This includes relationships with the public, other business owners, competitors, and the government. Business law also includes tax law, intellectual property, real estate, sales, employment law, bankruptcy, and many other forms of legal discipline. It can be confusing to understand exactly when you need to hire a business lawyer, so we’ll discuss more in depth when you’ll need to seek out legal advice and for what purpose.
Starting a Business
Starting a business is many a person’s dream, whether it involves creating a huge and successful company or hiring a few employees to run a small store. Whatever your desire may be, there are laws in place that need to be followed and understood so that you won’t make costly mistakes. These laws include rules about running certain types of companies, such as corporations, partnerships, and limited liability companies (LLCs). For example, if you want to start your own candy making business, you need to decide what type of company it will be. Is it a partnership, such as an agreement with your son, wife, or best friend? Or is it more of a sole proprietorship, meaning it’s only you starting, running, and marketing the business? What types of papers or information need to be filed before you begin the actual candy making process? Usually these laws differ from state to state, so you’ll need to research the unique laws of your state to understand better what you need to complete before opening your store’s doors for business. These state laws are referred to as “business entities.” Whatever type of business entity you decide on will determine what you will pay for the federal income tax. Obviously, federal income tax is a federal law, but it does apply to your state and business model. If you’re unsure of what type of business model to choose, contact a business lawyer to explain the laws and stipulations of your state so you can make an informed decision.
Choosing a business name also includes careful decision making and attention to the laws that apply. If you choose a name, before you can actually call your business by it, you have to ensure that it’s not already taken by someone else. This involves checking with a trademark office because this is part of intellectual property law. The government covers all intellectual property law and if you infringe upon anyone’s rights or business name, you can lose your business. The next step is checking if you need any special licensing or permit for your business. If you’re still interested in starting your own candy business, you’ll probably have to be approved to make food that will consumed by the public and many different laws apply to food service. You also have to understand how, when, and where you can advertise your business and what you can say on your ads. Usually, advertising falls under consumer protection law, which can be both state and federal law. As you can see, business law has countless facets and understanding the ins and outs of it can induce an instant headache. It’s important to have a business lawyer with you every step of the way to help you navigate the tricky waters that are the business world.
Buying a Business
Okay, so you want to buy your uncle’s hardware store that has been in the family for decades. While this may seem like a simple handover of the store keys, it’s not actually that simple. It’s important to detail whether or not you’re buying the business (meaning the business title and rights) or the store (meaning the physical location) or both. You need to discuss with your uncle and his business lawyer what his wishes are and what the sale will actually include. If you’re purchasing both, then you’ll have to consult real estate laws in your area to understand how the transfer of ownership will take place. You’ll be owning the physical store location, and if you want to ever renovate or change the storefront, you’ll have to understand the real estate laws and how they pertain to your actual location. You’ll also have to check out the property laws in your state in case you’re interested in purchasing the stock and equipment in the store. If your uncle wants to simply give you the leftover stock, then he’ll need to detail this in the sale of the store. If you’re required to purchase it, then this will be a different purchase than the sale of the store. In case you want to keep the existing staff and employees who already work in the store, you’ll also need to examine employment law as well to understand their rights and your new role as their boss. As you can tell by now, this is an extremely detailed and complicated process.
If you want to hire your best friend and his son as new employees, then you’ll need to discuss contract law with your business lawyer, as you’ll be making new agreements with other people and it’s important to know what contracts you have to adhere to since you took over your uncle’s contracts as well. As there are so many different options and unique cases that surround contracts (which are defined as a legally binding agreement between two or more individuals and is enforceable by a court of law), often breach of contracts happen and can land you in a huge legal mess. If you’re wondering what a breach of contract involves and how to avoid it, discuss every contract, including ones you have inherited and any new ones that have been made, with your business lawyer. Your business lawyer will also offer valuable legal advice as to who to enter a contract with, when to enter a contract, and how to avoid hiccups or frustrations. If you do find that you’re in the midst of a legal battle concerning a breach of contract, your business lawyer will also be able to interpret the contract and offer legal advice.
Starting your own business or purchasing an existing one is an exciting fulfillment of a dream for many people, but the actual creation or acquiring of a company is a drawn out and meticulous process. This blog has only scratched the surface of business law and the countless components that make up the many different elements of it. If you’re interested in starting your own business or purchasing a company and you’re in need of legal advice, call Brian Loomis Law now. Brian is proud to offer incredible service and experienced legal help in Springfield and surrounding areas. Contact him today!