Although the terms “corporate law” and “commercial law” are sometimes used interchangeably, there are actually important differences between them. Understanding the distinctions can help you get the appropriate legal advice and representation, whether your organization has transactional or litigation needs.
Manhattan business law is complicated, both in the corporate and commercial context. But hiring the right law firm to serve your company can give you the peace of mind necessary to focus on making it into a success. For all your New York legal matters, count on Levy Goldenberg LLP.
The Basics of Corporate Law
In general, corporate law is concerned with various business entities and the ways in which they are structured and governed. How the company’s owners and directors run the business is at the heart of corporate law questions. As an umbrella term, corporate law involves various types of businesses such as:
- Partnerships
- Limited liability companies (LLCs)
- S corporations
- C corporations
- Sole proprietorships
- Nonprofit organizations
Overall, corporate law is mainly concerned with New York corporations and LLCs. The legal issues that may arise for any given business include:
- Entity formation: How the business is established and what the tax, liability, and other implications are for various entities (e.g. S corporation versus C corporation).
- Business leadership: This includes the board of directors, officers, and shareholders of a corporation and the members of an LLC.
- Governing documents: Among these are articles of incorporation, bylaws, operating agreements, and shareholder agreements.
- Management: The respective powers and authorities of the key individuals within each business must be clearly stated.
- Dissolution: Sometimes, the legal issues at stake concern how to properly wind down and ultimately dissolve a business.
- Mergers and acquisitions: Corporations that wish to merge with or acquire another business, or are targeted for the same, implicate legal concerns.
Much of the law in this area is transactional, although certain matters can trigger litigation. Your Manhattan business attorney should understand the applicable state federal laws and regulations that control such issues.
The Basics of Commercial Law
Commercial law deals with the actions and processes that a company undertakes to carry out its business objectives. This area of law addresses business activities like selling products, manufacturing goods, and contracting for services. Among the various matters that fall under commercial law are:
- The Uniform Commercial Code (UCC): The UCC regulates sales, leases, checks and other negotiable instruments, bank deposits, credit, lending, secured transactions, and more.
- Unfair competition and antitrust laws: Businesses are prohibited from engaging in certain unfair tactics, including forming monopolies.
- Product liability: Consumer protection agencies are interested in regulating businesses to ensure their products will not harm the public.
- Workplace safety: State and federal regulations are responsible for keeping workplaces safe and avoiding accidents.
- Wage and hour laws: The minimum wage, overtime, and various recordkeeping provisions are just part of this category.
- Intellectual property rights: Included in this area are patents, trademarks, branding, trade secrets, and more.
- Anti-discrimination: All Manhattan businesses should understand the laws that prohibit discrimination and the agencies that enforce them.
A great deal of commercial law is administrative or regulatory in nature, although agencies like the Department of Labor may initiate a lawsuit against a business.
Helping You Appreciate the Differences
Corporate and commercial attorneys can sometimes provide the same or similar legal services. For instance, either one may assist your business in filing the appropriate paperwork for its entity formation. But the main difference between the two is the focus: while corporate law deals with how a company is structured and how it operates, commercial law in general concerns the transactions, sales, and other activities of the business.
Your Manhattan business may require legal counsel to assist with any of the above-mentioned items, or more, which may fall under corporate or commercial law. Regardless of the issues facing your company, you can depend on the seasoned guidance of Levy Goldenberg LLP. Connect with us now to learn more.