The Importance of Knowing Business Law

Business law includes all of the laws that determine how a business should be set up and run. It covers the laws that govern how to buy or sell, start and manage any type of business. If you are considering starting your own business, you may require an expert in business law such as Shahram Shirkhani, so you are in compliance with all state, federal and international laws and administrative regulations.

Starting a Business

There are laws that cover every type of business, including corporations, limited liability companies and partnerships. Before you start your business, you need to determine what type of business it will be. Will it be a sole proprietorship or partnership? Whichever type it is, you’ll file papers for that type. This will affect how you pay federal income tax.

Once you know what type of business you are starting, you need to give it a name. The name you select must be unique and not already used by another business. This is part of intellectual property law governed by the federal government. It is also necessary to find out if there are any licenses required for your type of business. For example, if it is a beauty salon, it may require a license or permit to operate. It’s important to be careful how you advertise your new business. This comes under consumer protection law which means you can’t say something untrue in your advertising.

Buying a Functioning Business

If you want to buy an already existing business, there are several laws to consider. If you buy the brick and mortar store, it’s real estate law. If you buy the equipment inside the store, it’s property law, and if you keep the same employees, it’s employment law. When you want to hire your own employees, it’s contract law. This means you may uphold the previous owner’s agreements or create your own. It’s important to understand the content of a contract for both the employer and employee. This is one area where the advice of a licensed attorney is invaluable. A poorly written contract can end up in a lawsuit from the employee.

How to Manage a Business

Management covers many areas, and each area has a law that governs best practices. Some of the main areas that management must understand are contract law, including benefits, insurance, taxes and firing an employee. There are government agencies that cover some management areas such as the Equal Employment Opportunity Commission that enforce employment discrimination laws.

With the proper advice from a licensed business law attorney, you won’t have any problems setting up your own business. It’s always better to get it right the first time.