Have you ever found yourself in a business law situation and didn’t know where to turn? Maybe you’re thinking about starting your own business and want to make sure you’re doing things by the book. Or maybe you’ve been in business for a while but find yourself wondering if you’re really doing everything correctly.
Don’t worry, you’re not alone. Business law can be confusing, and it’s important to get answers to your questions before moving forward. To help you out, we’ve compiled a list of the five most common questions experienced business law attorneys are asked daily.
1. What is the difference between a sole proprietorship and a corporation?
A sole proprietorship is a business owned by one person, while a corporation is a business that is legally separate from its owners. This means that if the business is sued, the owner’s personal assets are protected.
2. I’m thinking about starting an LLC. What do I need to do?
LLCs, or limited liability companies, are businesses that offer their owners protection from personal liability. If the LLC is sued, only the assets of the LLC are at risk—not the assets of the owners themselves.
To start an LLC, you’ll need to file articles of organization with your state government and pay any associated fees. You’ll also need to draft an operating agreement that outlines how the LLC will be governed and how profits will be distributed among its members.
3. My small business is being sued by a bigger company. Do I have any recourse?
Yes, you do have recourse—but it depends on the specifics of your case. If you believe that the other company is trying to take advantage of your size, you may be able to file an antitrust suit against them.
Alternatively, if you feel that they’re violating your intellectual property rights, you may want to file a patent or trademark infringement suit instead.
It’s important to speak with an experienced attorney who can help you determine which course of action makes the most sense for your business.
4. Can I fire an employee who’s not meeting my expectations?
The answer to this question isn’t always black and white. Generally speaking, you can fire an employee at any time and for any reason—but there are some exceptions.
For example, if an employee has an employment contract that guarantees them their job for a certain period of time, you may not be able to fire them without cause until that contract expires. Additionally, if an employee belongs to a protected class (such as race, gender, religion, etc.), you may not be able to fire them without facing discrimination charges.
Again, it’s important to speak with a business law attorney before taking any action so that you can avoid any legal ramifications down the road.
5. Do I need insurance for my small business?
The answer to this question depends on several factors, including the type of business you have, where your business is located, and what kinds of risks your business faces. For example, if your business deals with sensitive customer data (such as financial information), you may be required by law to purchase cyber insurance in case that data is hacked or stolen. In general, though, most businesses should have some form of liability insurance in case they’re sued for damages by someone who wasn’t employed by the company (such as a customer).
Business law can be confusing—but it doesn’t have to be! These are just a few of the most common questions asked. If you have any other questions or concerns about business law issues affecting your company, don’t hesitate to contact a business lawyer today.