Law is definitely complicated for people who don’t have any background about it. What makes it tricky is the fact that ignorance of the law is not an excuse. Therefore, it is necessary for people to get some basic knowledge to avoid getting into some unwanted trouble.
There are different kinds of laws and one of them is Business Law. In starting or running your own business, you need to check these laws and here are the basics:
What is Business Law?
It’s composed of laws that dictate how to form and run a business. Covers all laws that has something to do with how tot start, buy, manage and close or sell any type of business. These are basically the laws that all businesses should follow. It includes state and federal laws.
It also includes some administrative regulations.
Starting a Business
In starting a business, there are some laws you need to consider which can be affected by your decisions.
Business Entities. There is a law based on different types of businesses such as corporations, partnerships and limited liability companies. For instance, when you start your own business, you need to decide whether it’s a partnership or not and what are the important documents you need to consider.
Federal Income Taxes. The type of business entity you choose affects how you pay your federal income taxes.
Intellectual Property Law. Your need to carefully in choosing your business to make sure that nobody else has the same name as yours. This consider will fall under patents, copyrights and trademark.
Licenses and Permits. You also need to verify the type of licenses that you might need for your specific business. You also need to consider the type of permit you might need to fully operate your business.
Consumer Protection Law. In advertising your business, you also need to consider the law. You need to advertise properly for the benefit of your customers.
Buying A Business
Real Estate Law and Property Law. In buying a business, you need to check whether you would own the store or own all the equipment in the store.
Employment Law and Contract Law. You need to check whether you you would still be handling employees of the previous owner. Also, if you consider hiring your own employees, you need create new agreements or choose to uphold previous ones.
Breach of contract. It’s pretty common for businesses to dispute on agreements so, it’s necessary to create a good contract. A wise person would agree to a contract if he or she has a clear understanding of the content.