Business law governs the operation of businesses, from its formation (business organization) to its demise (bankruptcy or liquidation). Business law also governs the transactions between businesses, between business and government, and between business and the public. Traditionally, business law encompasses certain areas of law, such as business organizations, tax law, securities regulation, finance law, and bankruptcy. Business law, however, has developed through the years to include many other branches of law, such as environmental law, advertising law, intellectual property law, and labor law. With the advent of online selling, business law has expanded its claw to virtual stores, subjecting them to similar, if not the same, rules and regulations as brick-and-mortar businesses.
Business law attorneys are hired for transactional work. This means, they do not represent clients in court. Rather, business law attorneys are hired to prevent the business from getting into litigation. One of the major work done by business law attorneys is the drafting of contracts. Business law attorneys need to be experts in numerous areas of the law to make sure that a contract is drafted in accordance with the Uniform Commercial Code adopted in a specific jurisdiction. A well-executed contract means a business and the counterparty is confident that both of them will perform their obligations in accordance with the contract.
Formation of a business is a tedious job that needs the expertise of business law attorneys. Even before a business opens its doors for trading, it needs to be compliant with numerous laws regulations. Non-compliance of these regulations would mean no permit for trading or the imposition of sanctions. Choosing the type of business -- single proprietorship, partnership, corporation, and limited liability companies -- alone is already a daunting task that can only be undertaken by someone who is knowledgeable of the matter. A business can be further customized -- to "S-corps" as save taxes, or "limited partnerships" for some owners to participate solely as investors -- depending on the needs of the company. For most companies, the primary purpose in selecting a certain business form is to protect the owners from individual liability. Without the assistance of an expert business law attorney, owners may be putting all of their personal assets within the reach of creditors should they choose a business form without prior expert counsel. In addition to the formation of a business, expert counsel from business law attorneys is also needed in the drafting of internal agreements on how a company should be managed. Internal agreements are sensitive documents as it governs how owners will share profits and losses, make important decisions, and transfer ownership rights.
Another complicated matter that could arise in the operation of a business would be commercial transactions. Business owners are capable of dealing with certain commercial transactions; however, there are commercial transactions that are too complicated and touches on evolving areas of law that an expert counsel must be sought upon. These transactions may involve such laws as securities regulation or internet commerce. Aside from providing transactional services to a company, business law attorneys also provide an objective insight on the company that business owners may fail to possess as they often put their hearts into managing their business.