Small business is the core of any economy and plays an important role in the growth of the nation. In order to be successful in starting and maintaining a business, the requirements for licenses and permits are different in each state. This article is a part of a series concerning Business law. By jurisdiction. The first article in this series explained the basic requirements needed for starting and maintaining a business. The second article explained about general business matters such as corporate laws, franchise rules, and commercial activities.
Intellectual Property is the core of all businesses. All businesses should have some form of intellectual property, such as inventions, innovations, designs, etc. Some of the most common forms of intellectual property are trademarks, copyrights, and patents. These laws are often used by lawyers and the government to protect businesses from infringement by other entities and to encourage innovation. For example, the main article explained why intellectual property protection is important for small businesses. The third article explained why intellectual property theft is one of the biggest problems faced by businesses today.
Corporations are the core of many businesses and serve as the main shareholder. They are separate legal entities, although they often act like one. Like other businesses, corporations need to hire attorneys, accountants, and other professionals to help them run their affairs. They do not own their own assets or business, but rather must use other people’s assets to pay their bills and buy things such as supplies and raw materials. They are separate legal entities, but also share a lot of the same goals and concerns with other businesses.
Private companies are also important to many businesses because they often require special legal rights to prevent the government from taking control. A good example of this is a corporation formed in the state of Delaware but run out of that state. The Delaware statute restricts citizens of that state to do business with the corporation unless they receive written consent from the Board of Directors. In order to receive that consent, the company must demonstrate why they should have special legal rights and how that would benefit the public. Companies that do this successfully will be allowed to conduct business without fear of government intervention.
Lastly, many types of corporations are run separately from their owners. A small corporation may be run from a home office. A large corporation may be run from an office building and maintained as a separate entity from its owners. All of these types of corporations are important to protect and they all require specific legal protections.
Each of the three main articles discussed above has a different focus for its own type of business. Understanding what protection is important for each type of corporation is key to understanding the corporate law in general. Having a solid knowledge of the ins and outs of corporate law is a vital first step for new and existing businesses. The next steps to take when considering a corporate formation is to determine which type of entity best fits your needs.