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Posted on November 28, 2023 in entity formation
It’s a common misconception that corporate and business laws are interchangeable, but the reality is that both are separate entities that include their own regulations. While it may appear that business and corporate laws address all types of businesses, they only cover specific entities and don’t cross over. A Las Vegas business lawyer can provide a comprehensive explanation of how the two vary.
Whether you’re looking to start a corporation or business or want to understand the differences between the two before pursuing legal action, review the guide below to help you understand the two concepts.
Corporations differ from businesses since they are managed by shareholders. Because of this, corporate law involves treating the corporation itself separately from the shareholders. In this instance, corporations can file a lawsuit or enter into a contract, and corporate law attorneys are responsible for handling these issues specifically.
Should there be any disputes involving the corporation, such as a violation of the rights of its shareholders, then a corporate attorney can be brought in to handle the situation.
Business law relates to the regulations surrounding what a business can do, such as selling or distributing products and property. Business attorneys are brought in for matters related to businesses, not corporations, such as business litigation, business valuation, tax obligations, and more. If your business does not adhere to laws set by the local and federal government, your business could experience lawsuits, fines, and other issues.
Overall, corporate law may be viewed as a subset of business law, but both types of law are unique. Many people confuse the two types of law, while others believe both types of law relate to the same topics.
You may operate a business or corporation or be an employee for either place. You may have a legal matter you’d like to pursue, yet you are unsure who to speak with regarding your concerns. Depending on your situation, you’ll want to speak with either a corporate or business attorney or someone who can handle both types of cases.
Business attorneys typically handle cases that don’t involve corporations. For example, if your business needs to create new employee contracts so you can hire more people, you’ll likely speak to a business attorney for help. You can also contact one to handle legal disputes against one of your competitors. If your business does run into these types of issues, you can contact a Las Vegas business law attorney so they can determine how to move forward.
Meanwhile, corporate attorneys are more well-versed in handling problems with corporations or businesses wanting to go corporate. For example, if your corporation is dealing with bankruptcy or is struggling to navigate the incorporation process, business attorneys may not be the most efficient at helping you through this.
However, corporate attorneys have more specific knowledge in this field and can assist your corporation. These attorneys also know how to help businesses merge with other companies legally and fairly.
While you can theoretically navigate Las Vegas’s legal system on your own, this is challenging and not recommended for multiple reasons. Your business or corporation likely has a lot going on and plenty of work to do. Rather than handle your legal troubles on top of what your company is already doing, consider speaking with a qualified and knowledgeable business litigation attorney who can work on your defense for you.
A: No, business law and corporate law are separate types of law, though many people are understandably confused by the two. Corporate law addresses legal matters pertaining to corporations only, whereas business law relates to more broad business-related issues such as bankruptcy, employee contracts, and more. While the two types of law can appear to be the same, both come with their own types of regulations.
A: Businesses aren’t required to have an attorney, but they should consider hiring one for many reasons. The main reason is that if your business ends up facing a legal problem or dispute, an attorney can begin working on creating a defense for you while you continue to conduct business. If you don’t have an attorney, you’ll have to gather your own evidence, build your own case, and defend yourself in court on top of your daily tasks.
A: Corporations are managed by shareholders, while businesses are not. Corporations have the legal right to enter into a contract, and they can also file lawsuits. However, corporations can also have lawsuits filed against them, and if a shareholder’s rights are violated, corporate attorneys can be brought in to address the problem. People involved in corporations should take some time to understand their rights so they’ll know what to do if they need a corporate attorney’s help.
A: Business law usually involves five different areas of law. These types of law are contract, labor, accounting, environmental, and tax law. When a business has an issue regarding any of these types of law, business attorneys can get involved and begin building a case. It’s beneficial to learn at least some aspects of each type of law before starting a business to be better prepared for any legal troubles.
Corporate and business law can be confusing to make sense of, especially since there are many intricate details to think about and consider. You may not have the resources to create your own legal defense, but you don’t have to do this alone.
Our staff at Ken R. Ashworth & Associates have assisted many businesses across Las Vegas with their legal needs, and we’re prepared to help you as well. While you focus on your business and staff, we’ll work behind the scenes, gathering relevant information that can be used to help your case proceed smoothly. Learn more about what we can do by contacting us today.
