What is Business Law?
Business law deals with the creation of new businesses and the issues that arise as existing businesses interact with the public, other companies, and the government. This area of the law draws on a variety of legal disciplines, including tax law, intellectual property, real estate, sales, employment law, bankruptcy, and others.
Business Formation and Internal Agreements
New companies must take steps to comply with the law even before opening their doors for the first time. We are routinely asked to assist clients with choosing the business entity best suited for their enterprise and form new entities on behalf of our clients by filing the necessary documents with the Secretary of State.
Businesses can be formed as corporations, limited liability companies (LLCs), partnerships, and other entities. Most of these business forms can be further customized to meet the needs of the company. Examples include corporations formed as "S-corps" in order to achieve tax savings, and partnerships formed as "limited partnerships" to allow some owners to participate as investors only.
While the selection of the appropriate business entity will depend on numerous factors, the primary purpose of most entities is to shield owners from individual liability. Operating a business that is not set up to provide limited liability means that the owners are putting all of their personal assets within reach of the business's creditors. By working with Middagh Law, PLLC at the inception of the business, this situation can easily be avoided.
Middagh Law, PLLC is also available to draft the internal agreements that will control how a new company is managed. A common example is an LLC operating agreement. This document should be drafted with care, as it governs how the company's owners will share profits and losses, make important business decisions, and transfer their ownership rights.
Navigating Complex Transactions
Some commercial transactions are within the ability of business owners to handle on their own. Others are not, especially when a deal touches on complicated and evolving areas of the law, such as securities regulation or internet commerce. In heavily-regulated industries in particular, companies rely on their in-house or hired lawyers for advice regarding the latest legal developments affecting their businesses.
Even for savvy business people, problems can develop when emotions become involved. Middagh Law, PLLC can provide valuable insight into a transaction, not only because of their legal training, but also because of the objective nature of their analysis. This allows us to spot issues overlooked by business owners and managers who may be too emotionally invested in seeing the deal go through.
Preemptive Measures to Avoid Litigation
Business law provides rules and guidance for companies to follow before disputes occur. Middagh Law, PLLC can structure transactions to minimize your company's exposure to litigation. This sort of strategic legal maneuvering can end up saving your company huge amounts of money.
Hiring Legal Counsel
If you operate an existing business or plan to launch a new one, your success may depend on obtaining the right legal advice. Middagh Law, PLLC is available to assist with everything from a simple buy/sell agreements to mergers and acquisitions. Schedule a consultation by calling (786) 395-1148 or emailing richard@middaghlaw.com.
