What to Know About Small Business Law
A business is broadly defined as a commercial organization or individual engaged in commercial, productive, or productive activities. Businesses may be either private for- profit entities or public non- profit organizations that conduct business to meet a social need or further a charitable purpose. In the United States, private businesses are not legally recognized as companies and are not subjected to the same filing and tax regulations as publicly listed corporations. Although most private companies are bound by their lease agreements, few states have laws requiring the registration of a business as a corporation. In most cases, business corporations are also only classified as a disregarded entity and are not incorporated with the IRS. However, these types of businesses may still be subjected to state and local taxes.
The most famous example of a business entity being classified as a corporation is Apple Computer. Apple has established its own trademark on the term “apple”, which it uses in many of its products including its Mac operating system and its popular iPhone. Apple has not become a publicly listed company until 1998, even though it was initially listed as a partnership between Donald Trump and two former New York investors. In that year, the company earned more than $80 million in profits.
Most other businesses, although they have not become formally listed as partnerships or corporations, enjoy some protection under federal and state laws. For instance, several states limit the personal liability of owners or shareholders of corporations, limiting them from being held personally liable for the actions of shareholders in most other ways. Many businesses are able to escape lawsuits by forming a limited liability company, or LLC, which shields owners’ personal assets from lawsuits and creditors’ claims.
Limited liability entities are different from corporations in a few ways. In an LLC, the general rule is that the owners are each responsible for their own section of the company’s assets — that is, each individual share holder owns a share of the business, but not all share holders are responsible for the business’s debts or obligations. A corporation is only one unit, and all of its owners are responsible for its liabilities and obligations. A shareholder can sue an individual owner of the business individually, but he cannot sue the corporation for any wrongdoing.
Many lawyers and accountants prefer to treat corporations and LLCs as separate legal entities, even when the business is not formally registered as a corporation. For instance, there is no longer any need to treat a sole proprietorship as a separate legal entity from a partnership unless the partners want to use their separate identities on paper. Similarly, a publicly held corporation can have several LLCs, each of which is run separately. That way, the business’s debts and obligations are managed differently, and therefore, there is less risk of lawsuits and lopsided settlements in the case of a lawsuit.
Many business owners, when forming a corporation, mistakenly believe that their limited liability will give them the right to run the business in their own name as they wish, ignoring the existence of limited liability. The main article of corporate law is that the owner of the company is responsible for all acts performed in the course and scope of the company, including negligence or acts of negligence by the officers and employees of the company. Therefore, if the corporation is sued for some wrongdoing, the main article of the law will apply and the person or entity suing will receive compensation for their damages. If a corporation is sued for some reason other than negligence, such as wrongful foreclosure or invasion of privacy, the main articles of the law will not apply, and the owner of the corporation may be responsible for those damages.
One of the main articles of the law that many small businesses do not consider is the effect of dilution of profits. Often, businesses form corporations to avoid having to pay taxes on their profits because those profits are considered taxable. However, it is important to realize that tax laws are complex and that one accountant can interpret the laws differently than another. Because of this, it is important that businesses carefully consider their options so that they do not run afoul of any part of the code.
One of the most common areas of confusion in the area of business law is the area of intellectual property law. Intellectual property is simply the property of a person or entity that does not come under the scope of a normal article of law. This includes trademarks, patents, copyrights and trade secrets. Because many businesses often have large amounts of intellectual property that they develop and protect aggressively, there are often conflicts between the owner of that property and the government. This is often the source of great disputes in business.