Business Law deals with matters relating to the formation and financing of business enterprises.

• Choosing a Form for Your Business
  Business enterprises can be set up in a variety of different forms including:
  
  • sole proprietorships
  • partnerships
    
  • corporations

• Sole Proprietorships
  The sole proprietorship is the simplest and most common form of business entity. A sole proprietorship is a business that is conducted by a single individual owner (the "sole proprietor"). Sole proprietors can conduct business under their own name by simply doing business.
  
  
• General Partnerships and Joint Ventures
  A general partnership is a business enterprise entered into by two or more persons who do not form a corporation or any other type of business entity to operate the business. If two or more individuals start a business together with the understanding that each will share in the profits of the enterprise, they are considered a general partnership even if they didn’t specifically intend to start a general partnership.
  
  
• Limited Partnerships
  A limited partnership is a partnership in which the duties and obligations of the partners are divided between "general partners," and "limited partners." Usually, the formation and operation of limited partnerships are regulated under state statutes, defining the obligations and duties of these classes of partners and imposing other obligations. For example, limited partnership statutes usually require that a certificate of limited partnership containing specified information be filed in designated government offices and be kept current.
  
  
• Limited Liability Partnerships
  Limited liability partnerships are partnerships in which the liability of all the partners is limited. Generally the partners in limited liability partnerships are not responsible for the debts, obligations, or liabilities of the partnership resulting from negligence, malpractice or wrongful acts, or misconduct by another partner, employee, or agent of the partnership. However, a partner of a limited liability partnership is liable for other partnership debts and obligations as well as for their own negligence, malpractice or wrongful acts, or misconduct, and that of any person under their direct supervision and control.



• Corporations
  A corporation is legal entity wholly separate and apart from its owners (the shareholders or "stockholders"). Corporations are formed by filing a "certificate of incorporation" or "articles of incorporation" with the Secretary of State.
  
  
• Limited Liability Companies
  A limited liability company, or "LLC," is an unincorporated business entity that is similar to both corporations and partnerships.

  Like a corporation, the formation of an LLC shields its members from personal liability for the debts and obligations of the company.
  

• Purchase and Sale of a Business
  Starting up a business can be a difficult venture because of the many unknowns involved in a new enterprise. For example, there is often a significant time lag between the "grand opening" and development of a client or customer base sufficient to meet overhead expenses and generate a profit.
  
  
• Financing a Business
  Small business start up costs are often financed with personal funds including savings, loans from family members, and even credit card advances. If a business is to grow, it is usually necessary to obtain larger amounts of financing than these methods can provide. Businesses are financed in a variety of ways.
  
  
• Franchises
  Many new business owners choose to purchase a franchise business because of the assistance they can obtain from a company with experience in the business being started.
  
  
• The Importance of Attorneys and Accountants in Business Planning
  Whether a business is started over the kitchen table or is a multi-million dollar high-tech startup, operating a small business can raise numerous legal and financial questions.