Business Registration

• State business laws require registration of your business. Different statutory laws regarding operations will apply depending on whether you decide to register the business as a sole proprietorship, C corporation, S corporation, partnership or limited liability company (LLC). Tax law treatment will vary depending on the form of registration.
  
  

Contracts

• A new business will enter into legally binding contracts, which can be written or oral. The law governing a contract is based on the jurisdiction where it is signed or the state law that the parties who signed the contract have agreed to. Bankruptcy laws can affect a contract's terms.
  
  Article 2 of the Uniform Commercial Code (UCC) is also noteworthy for product-based business operations, since the UCC's provisions govern the sale of goods. The UCC covers matters such as delivery, implied and express warranties, return of defective goods, risk of loss, and breach of contract.
  
  

Wrongful Acts

• A business enterprise is subject to laws related to torts, or wrongful acts. This includes negligence, intentionally wrongful acts and strict liability. Vicarious liability and "respondeat superior" legal principles determine whether a firm will be responsible for the actions of an employee that has injured a third party. "Respondeat superior" is a Latin term that means "let the master answer."
  
  

Employment Law

• To avoid litigation risks, a business must understand its legal obligations as it relates to employees. This includes distinguishing between employees and independent contractors, since the legal obligations for each will differ. To avoid wrongful-discharge claims, a company should have policies and procedures in place that account for federal and state civil rights laws related to discrimination. Firms must also comply with laws related to hiring international employees.
  
  

Other Laws

• A basic understanding of intellectual property law can help a business protect its own property and reduce the risk of violating the rights of others. Intellectual property covers copyrights, patents, trademarks and trade-secret protection. Unfair-competition laws aim to prevent deceptive and false business practices--particularly in advertising and sales.