Atlanta Business Law
Frequently asked questions about business law
What is business law?
Business law, also referred to as commercial law, covers everything from contracts, bankruptcy, incorporation, transactions, and taxation, to banking, finance, and intellectual property. Business law encompasses a wide range of rules, statutes, and codes, as well as numerous regulations that govern commercial and business dealings. Other areas business law pertains to include business formation, organization, negotiations, planning, transactions, acquisitions, mergers, and divestitures.
What are some benefits of incorporating?
Corporations can issue stock, and having corporate stock allows for easier transfer of interest in the business. If a business needs to raise money, it can sell shares of stock. Also, central management such as that of a corporation has advantages such as articles of incorporation and bylaws that may protect officers and directors from liability for losses caused by them in their corporate capacity.
Will incorporation avoid or lessen personal liability?
A business that is properly incorporated under law, becomes a legal entity separate from its owners. This insulates the owners so that creditors can reach only the assets of the corporation. The personal assets of the owners usually cannot be reached. In cases where there is fraud, parties may seek to pierce the corporate veil.
What does "pierce the corporate veil" mean and how do I avoid it happening to my company?
To pierce the corporate veil means that a creditor can reach the personal assets of a business owner or owners. An Atlanta business attorney skilled in business laws can help you to avoid the problems associated with having the corporate veil pierced. Business owners must not commingle personal and business assets, fail to set up the business properly, and must always sign contracts in a corporate capacity, to avoid having the corporate veil pierced.
What is ADR or alternative dispute resolution and when is it used?
ADR or alternative dispute resolution is an alternative approach to trial where parties use mediation or arbitration to arrive at a fair settlement outside of court, usually saving time and money by avoiding drawn-out court battles.
Atlanta business litigation and legal advice
Experienced business law attorneys in Atlanta can advise you on all aspects of business transaction and ensure you are in compliance with all federal, state, and local laws.
