What is Company Law?

Company law is the field of law concerning companies and other business organizations. This will include all business entities an individual can form as well as any association that can be used for economic or charitable activity.

What Company Law Covers

Examples of the main business entities: sole proprietorship, corporation, LLC, and partnership. 

Each business entity has its own advantages and disadvantages that will tailor to the needs of any owner(s). Company law is typically referred to as corporate law or business law in the legal world. This legal field is mostly transactional work dealing with contracts, formation of companies, equity distribution and employment law.

In the United States, corporations are generally “incorporated” or organized in a specific state, which will have laws and regulations for wherever a company chooses. Corporate laws will vary by state and because of these differences corporate lawyers will offer advice as to the best state to locate your business.

Many people ask about why you see so many Delaware corporations and the answer is generally not well defined. Lawyers figured out the laws in Delaware are best tailored to corporation business entities a long time ago, and additionally the state has some of the most knowledgeable employees that make incorporating a business very easy.

State law is supplemented by federal laws and regulations, which a corporation will have to comply with upon formation. These encompass tax issues, investor protection, and securities regulations if you are going to issue stock.

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