Legal Specs

Basic Concepts of the Business Law in Los Angeles

03 Jul 2008

When deciding to engage in a business venture in the United States, Los Angeles is one of its states to be considered. It is one of it states where there is an abrupt raise on economic condition.

What is Business Law?

Business law commonly known as commercial law is a body of law that governs business and other commercial transactions.

Business law is divided into different subjects such as:

• Contracts
• Corporation
• Securities Law
• Antitrust
• Secured Transaction
• Commercial papers
• Income Tax
• Pension and Benefit
• Trust and Estates
• Immigration Law
• Labor Law
• Employment law and bankruptcy

If you are interested in putting up a business, the following are the different business structures you have to consider.

• Sole proprietorship – A business owned and managed by a single individual. The owner is solely liable for all business debts and obligations.
• Partnership – This is owned by two or more individual who agreed to contribute money and property to engage in business transaction. The partners are the liable individuals for all the business debts and obligation. But the liability of each partner depends on whether a partner is a capitalist, industrialist or limited partner.
• Corporation – A business entity owned by shareholders. In this kind of business structure, there is separate personality between the shareholder and the corporation. The shareholder cannot be held liable for the debts and obligations of the corporation.

Yet, when such separate personality doctrine is used by the corporation in fraud of its creditors, the shareholder can be held liable under the doctrine of piercing the veil of corporate entity. This means that the creditor can sue the shareholder if such separate personality doctrine is used to escape its liability from its creditors.

• S Corporation – This is a special type of corporation created through tax election.
• Limited Liability Company – A new type of legal structure that provides a limited liability feature of a corporation and tax efficiencies and operational flexibility of a partnership.
• Non-profit – This is engage in activities of public and private interest.
• Cooperative – A business organization owned and operated for the benefit of those using its services.

Why do you need a business lawyer?

If you are planning to engage in any of the different business structure mentioned you need the assistance of a competent and credible attorney.

Business lawyers are expert in different topics and help you in any issues regarding business transaction such as:

• Business formation and organization
• Business negotiation
• Planning
• Acquisition
• Merger
• Divestiture and sale of business
• Business litigation
• Setting company policies
• Business mediation
• Business Transaction
• Contract negotiation and enforcement
• Drafting and reviewing contracts and agreements
• Permit Application
• Stock Issuance

Common issues encountered in business?

Just like any transaction, business transaction is not exempted with any problems such as:

• Contract and licensing dispute
• Commercial lease dispute
• Employment dispute

If you want to experience the best legal assistance in putting up your company in Los Angeles, rely on the expertise of our Business Law attorneys. Just log on to our website and fill out our free case evaluation form.