The law dictates much of the way we live our lives. Most of us follow laws regularly without thinking much about them, from slowing down for yellow traffic lights to picking up after our dogs when they do their business during a leisurely walk in a public park. Laws aren’t designed to order us around, but to protect ourselves and help communities flourish. Keeping our cities clean and safe is beneficial to everyone.
Less familiar to the average person is how corporate laws work. Certain businesses are run by another branch of the legal system that involves corporation security and dealing with information that is not readily available to the average citizen.
Corporate Law 101: The Basics
“Corporate law” deals with business corporations: the rules and regulations by which they must operate. These laws affect everything from the ownership, formation, and management of a business.
If you’re a shareholder or a business owner, you may be wondering how corporate law differs from business law. In the latter, the focus is on taxes, contracts, and matters of employment. Corporate laws focus on “big picture” issues, from shareholders’ rights and big buying decisions. What makes corporations unique that they are legally considered separate entities. Despite consisting of owners, investors, and employees, corporate law treats the business as one unit, rather than focusing on the many individuals within it. In other words, the entire corporation is treated as one person.
What Exactly Is A Corporation?
A corporation is basically an entity, be it a company or group of people, that operate a business. If you own a share in a corporation, this gives you what is called “limited liability,” which makes you responsible for only the funds you personally contribute. Should the business fail to succeed, you would only forfeit however much money you initially invested; the rest of the company’s debts and losses are not your responsibility.
How To Incorporate A Business
Separating the assets of a business from owners and investors is what’s known as “incorporating.” This legal process allows businesses to easily transfer ownership if necessary, without risking any personal assets or having any personal exposure to risk. Thus, a company is better able to raise capital, which is fancy business-speak for getting money from investors in order to grow.
What Corporate Laws Are Used For
As corporations grow in power and profits, they can monopolize smaller markets in the same industry – sometimes taking them over and driving them out of business. Corporate laws are largely responsible for maintaining a fair marketplace so that businesses can compete in healthy ways. Keeping the larger businesses in check helps level the playing field allows multiple businesses to thrive at once, which is ultimately best for everyone.
What Corporate Lawyers Do
The main role of a corporate lawyer is to ensure that all business transactions are legal. At the same time, these transactions must work for the benefit of the company.
To perform their job well, corporate lawyers must be fluent in matters of contract and tax laws, property rights, and other laws that are relevant to the type of business that a given company is running. Businesses benefit from working with large firms that have access to extensive resources, as opposed to smaller firms that focus on niche areas of the law. Many corporations choose to hire corporate lawyers as permanent employees since their expertise is used so frequently.
Want To Learn More?
Maybe you’re a shareholder in a corporation or thinking of becoming one. Maybe you’re looking for advice on how to succeed in a competitive market. Whatever your concern, the law firm of Gary I. Handin, P.A. can help. We are a well-respected law firm in Coral Springs, Florida that is passionate about providing quality representation for all. Our compassionate and professional service is backed by several decades of experience. Our attorney and staff have vast knowledge about the workings of different areas of the law, and always at reasonable prices. To speak with an attorney today, give us a call at 954-796-9600.