Business law is just a catch-all term used to describe things generally associated with a business entity. Business law can include contracts and forming an LLC or corporation. It could also mean creating employee handbooks, non-compete clauses, mergers, purchase orders, licensing, dealing with the Secretary of State, and so on.
It is important that you understand exactly what it is that you are getting into. Whether you are an employee or employer, it affects you. The best example of business law for employers is the formation of the company itself. In this day and age, there are many business entities that have special protections and privileges. You can read about that here.
For instance, depending on where you incorporate, or how you file, you may have a much lower tax rate. Depending on what business entity you form, you may have complete freedom from the liability of the business. This means that you will not be individually responsible for the debts of the business.
Despite all of these protections and privileges, 73% of all businesses are sole proprietorships. This is a business entity that has no protection whatsoever for the individual and maximizes taxation. While attorneys may seem like an expensive option at first, one consultation with someone who knows what they are talking about may save you tens, or hundreds, of thousands over the years! You will also have the peace of mind that the debts of your business are not your own.
Other things to consider with business law are whether your workers are employees or sub-contractors; whether you will be held liable if they do something bad; and, whether you are really getting a good deal with a business you are working with.
An employee will often give up their rights by not understanding their employee agreement. They may feel trapped later when they find out they have a non-compete clause. Or, when they are responsible for debts they believed were not theirs.
“An ounce of prevention is worth a pound of cure” so the saying goes. Addressing these issues before it becomes an issue is the best way to combat them. However, many times an issue is not spotted until it appears too late to fix it. It is not too late. It is never too late to try to get help. If you need help for your business, or if you are an investor or employee needing help, contact us.
Business law is what we do.