Many people think that they understand what business law is all about. However, they become confused when the discussion changes to include corporate law. Some business owners use both business and corporate law interchangeably, assuming that they are mere synonyms. Is that the proper position of things?
As a business owner, it’s essential to understand the similarities and differences between both branches of law. By widening your comprehension of both areas, you will begin to better appreciate your job roles and responsibilities. It will also help you determine what kind of lawyer you need for different situations in your work.
In this article, we’ve discussed the scope of business and corporate law. You’d also understand the difference between law branches and why you need a lawyer to structure your company. For more information on business and corporate law, you should seek advice from our experienced Hartford business attorneys.
What’s Business Law?
In simple terms, business law refers to the rules and regulations governing the formation and running of a business venture. Some people also refer to this as commercial law. It deals with business creation and operations, tax law, contracts, bankruptcy law, intellectual property, sales, real estate, etc. Commercial law also involves the management of various business entities.
In Connecticut, commercial law focuses on regulating sales, negotiable instruments, debits and credits, secured transactions, etc. In essence, commercial law deals with rules governing the sale, purchase, and distribution of goods. Once you start a business, you must adhere strictly to these laws.
What Does Corporate Law Entail?
A corporation is a business entity that derives its legitimacy from the laws of the state where it operates. It has a legal personality that is distinct from the people who formed it. Corporate law is the rule that controls this form of business entity.
In essence, corporate law entails all the activities that regulate the operations of a corporation. That includes the rights of shareholders, duties of the corporation management, etc.
Are There Any Differences Between Business and Corporate Law?
The mixup between what business and corporate law entail is understandable. That’s because they meet in so many areas and are so interwoven that it can be difficult to tell them apart. In fact, companies and businesses need experts in both branches of law to develop a solid operational structure. However, the difference between business and commercial law lies in their scope.
While commercial law provides rules of product purchases and sales, corporate law is less broad in scope. Corporate law deals with the formation and regulation of companies. It includes mergers and acquisitions, shareholder rights, investor rights, etc. While there are elements of commercial law in corporate law, not all aspects of commercial law involve corporate law.
Business, as an activity, involves various aspects of the law. For example, in commercial law, you must consider employment laws, tax laws, and many more. However, under corporate law, only the activities of the corporation are considered. By understanding the differences between corporate and business rules, you can avoid many mistakes and expenses at your job.
Common Terminologies in Business and Corporate Law
The following are some of the majorly used terms in law practice in Connecticut:
- Sole Proprietorship: A sole proprietorship refers to a business that is owned and managed by one person.
- Securities: Securities are a broad name for business instruments like shares and bonds.
- Voting Rights: These are rights that shareholders have that enable them to vote for their shares.
- Good Standing: When a business is in good standing, it has complied with all the laws that guide it.
- Partnership: Unlike sole proprietorships, a partnership exists when two or more people co-own a business.
- Winding Up: This refers to the processes involved in dissolving a company. These processes include paying off creditors, selling off assets, and distributing unsold ones. After winding up, the company no longer exists.
For more business terminologies, contact our Hartford business lawyers.
Consult With the Best Business Attorneys in Hartford Now!
Whether you own a business or manage a corporation, you need an expert team of lawyers to run smoothly. Our experienced business lawyers at Aeton Law Partners are precisely the best-suited attorneys for your Connecticut business. Do you need to identify risks in your business, or do you need some help with legal documentation? No other attorneys do those better than us.
We offer top-notch business and corporate legal advice for our clients. We’d also represent your interests in claims and lawsuits. Give us a call today, and let’s give your business the formidable structure and protection it deserves.