Business vs. Corporate Law

For some reason many people seem to confuse business and corporate law. They do different things.

Business law is actually referred to as commercial law, and corporate
law is usually called company law. While this might not end the
confusion as to what each attorney does that practices these forms of
law, it may clarify the fact that both forms of legal practice handle
business and commercial transactions, and the internal rules of running
a company.

Typically, a Sacramento business lawyer
handles things like contracts, commercial paper, employment law, sales
and agency, and deals with things like corporations and partnerships.
On the other hand, corporate law pays close attention to the
relationship between businesses and customers and, how things run under
the auspices of the firm’s internal rules. Anything legal, litigated or
mediated, etc. in either area of these two types of law applies to all
transactions in public or private.

Let’s take a closer look at what a Sacramento business lawyer
handles. In this particular legal arena, business law lays out how
different enterprises are set up. For instance: registration, proper
documentation and other requirements, how taxes apply to them, drafting
bylaws, articles of organization, company start-ups, buying or selling
of other firms, handling employees in the correct legal manner,
properly managing the venture and so on.

On the other side of the fence, corporate law has five things that
separate it from business law (as these areas both use the same laws
and processes). Corporate law deals with investor ownership,
transferrable shares, limited liability of shareholders, delegated
management, and the separate legal personality of the corporation. In
most instances, these “differences” apply to publically owned
corporations.

The interesting thing about corporate law is that its origin is from
the middle ages. It was employed when medieval guilds were set-up, but
not created for profit. Put another way, corporate law in the 21st
century defends the rights of the company and the shareholders when
legal matters need to be handled or the company goes under.

There are more than just the “five differences” that drive corporate
law. For example, this area also deals with the corporate constitution,
corporate litigation if necessary, the personality of the corporation,
its capacity and powers, and the duties of the director. It will also
handle things like acquisitions, insolvency, corporate crimes and
mergers.

Just be aware of the “differences” when it comes to choosing a Sacramento business lawyer for your company.

Deborah Barron is a Sacramento business lawyer, Sacramento employment lawyer, and Sacramento winery lawyer in California. To learn more, visit Lawbarron.com.