In general, business law ensures that parties to a transaction or deal are protected. While there are many different aspects of business law, the main purpose is to ensure fairness and protection of the parties.
Business law covers many topics, including contracts, transactions and disputes, intellectual data and property, labor law, bankruptcy, income tax, confidential information, and more. There are many questions that arise regarding these topics, and here are just four of the most common among business owners.
#1 Do I Need to Hire an Attorney When Starting a Business?
Many entrepreneurs are often confused about whether they should seek legal guidance when starting a business. A soon-to-be business owner may be able to navigate the beginning stages, but it is important to consult with a business lawyer to limit your risk and ensure that you are compliant with laws.
#2 How Do I Decide Which Business Entity is Best for Me?
Choosing the right business entity and understanding the long-term impact to the success of the business makes this one of the most important decisions for a new business owner. In addition, awareness of the state and federal laws affecting each business entity make this single decision a critical reason to seek legal advice.
The main factors to consider when choosing a business entity are tax requirements, liability, applicable law, and required corporate formalities. There are several business entities available in Florida. These include corporations, limited liability companies (LLCs), general partnerships, limited partnerships, and sole proprietorships. Each entity reflects a different type of business structure and includes differing implications that should be considered.
#3 What is the Difference Between a Corporation and an LLC?
This can be a complex topic, but in short, both a corporation and an LLC protect owners so they’re not personally responsible for business liabilities or debts. However, there are considerable differences between these two types of entities.
The key differences between corporations and LLCs include how they’re owned and maintained. Corporations have shareholders and generally have more formal record-keeping and reporting requirements. LLCs have one or more individual members and significantly less reporting requirements, while allowing for more flexibilities than corporations. In general, LLCs are considered easier to start and maintain for a new business owner.
#4 Should I Have a Buy-Sell Agreement?
A buy-sell agreement details what should happen in the event of an owner’s bankruptcy, incapacitation, retirement, or passing. It also can affect the sale of one’s share in a business. It is important for businesses to have and should be prepared with the help of an experienced business attorney. Without this agreement, a company could face major difficulties.
Do You Need Assistance with Your Business?
Being a business owner comes with many exciting rewards, but also many daunting decisions. It is important to seek legal guidance to ensure that you are establishing your business properly and are satisfying all laws when creating and managing your business.
If you need assistance with your business or have questions about any potential business law matter, we can assist you. Contact Apfelbaum Law today for a consultation.
