Business entrepreneurs must be aware of the trends in the market and have vast knowledge in managerial techniques. But to make their effort worth and safeguard their businesses, small business owners must also know the basics of business law and ensure they comply with the regulations of their industry.
In this video, corporate attorney Danya Shakfeh explains the foundations of business law and how it is involved in every aspect of the commercial activities of a company.
Starting with the business formation, entrepreneurs must select the business entity that provides the best benefits for their company.
This decision must be taken with the assistance of a business attorney and an accountant, for this will not only allow them to have a better tax management, but to a structure that aligns to their business goals.
Once the business structure has been determined, small business owners have to set up their corporate documents, which are business contracts that specify the obligations and responsibilities of the members of the company. These documents describe the procedures to follow in case of dispute, the exit of a member, and also determine the contribution and rewards of the members, along with other specifications regarding the operations of the company.
The next part is drafting contracts. It’s essential for entrepreneurs to understand the relevance of business contracts as a way of protecting their business, but also for the role they play in the business strategy, as they are tools that consolidate the business model.
It’s necessary to have contracts between the members of the company, for the business clients, and also the vendors, as they establish the guidelines that govern the business relationships and set procedures in case an agreement was not satisfied.
Another area of business law is called securities, which covers everything related to business investments. This is a highly specialized part of business law, as it is also a practice that involves high risks.
Lastly, Danya covers another part of business law, which is employment law. Entrepreneurs should be aware of their rights and obligations as employers, for this is a topic that can bring serious consequences when not handled properly.
Watch this video for a summary of business law for entrepreneurs.