Business Law Articles

Discover and learn the latest valuable business law articles for ideas, practical information, DIY from a network of leading business and corporate lawyers.

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How Can You Prove a Verbal Agreement in Court?

A verbal agreement can be legally binding, but proving its existence requires strong evidence like correspondence, witness testimony, or performance records. Written contracts remain the best way to prevent disputes and ensure enforceability in legal proceedings.

How Can I Prove a Seller Lied on a Disclosure?

A seller's false disclosure can affect property value and legal standing. Identifying misrepresentations, gathering evidence, and consulting experts help protect buyers' interests.

Where Can I Find a Small Business Lawyer Near Me?

Find a small business lawyer by leveraging professional networks, legal directories, and online resources to compare expertise and pricing. Ask key questions about experience, fees, and communication to ensure the right legal fit for your business.

What Should I Do if My Business Partner Is Making Decisions Without Me?

Your business partner making decisions without you can impact your role and company success. Assess your partnership agreement, document exclusions, and seek legal advice to protect your interests.

What Is Promissory Estoppel? Legal Definition and Examples

Promissory estoppel prevents a party from denying a promise when another party has reasonably relied on it and suffered harm. Courts may enforce such promises even without formal consideration to ensure fairness and prevent financial injustice.

What Is the Role of a Board of Directors and How Are They Elected?

A board of directors sets a company's strategic direction, oversees management, and protects shareholder interests. Elected by shareholders, board members ensure compliance, manage risks, and guide corporate policies for long-term success.

What Is the Cost of Goods Sold and How Does It Affect Gross Profit?

Cost of Goods Sold (COGS) represents direct expenses in producing goods, impacting gross profit by determining profitability. A higher COGS reduces gross profit, affecting overall financial performance and business competitiveness.

What Is Straight-Line Depreciation and How Is It Used in Accounting?

Straight-line depreciation allocates an asset’s cost evenly over its useful life, ensuring consistent expense recognition in financial statements. Businesses favor this method for its simplicity, accuracy, and alignment of expenses with revenue across accounting periods.

What Is Net Profit and How Is It Calculated in Business Accounting?

Net profit is the remaining revenue after deducting all expenses, taxes, and costs, indicating a company’s profitability. Calculating it accurately helps businesses optimize pricing, streamline operations, and improve financial health.

What Is Net Income and How Is It Calculated in Accounting?

Net income shows a company's profitability after subtracting expenses from revenue, making it a crucial financial health metric. Businesses and investors analyze net income to assess stability, guide decisions, and evaluate overall performance.

What Is a Non-Disclosure Agreement and Why Is It Important in Business?

A non-disclosure agreement (NDA) is a legal contract that protects confidential business information from unauthorized disclosure. Businesses use NDAs to safeguard trade secrets, maintain competitive advantages, and ensure trust in professional relationships.

What Is a Lien and How Does It Affect Property Ownership?

A lien is a legal claim on property that secures debt repayment, affecting ownership and financial flexibility. Unpaid liens can complicate sales, refinancing, and creditworthiness, requiring resolution before transferring property rights.

What Is a Hold Harmless Agreement and When Is It Used?

A hold harmless agreement shields one party from liability for damages caused by inherent risks in contracts. Common in high-risk industries, these clauses protect businesses, landlords, and contractors from legal claims.

What Are Retained Earnings, and How Are They Reported in Financial Statements?

Retained earnings represent a company’s net profits after dividends, influencing financial stability and growth. Businesses report them in the shareholders’ equity section of financial statements.

What Does LLC Mean, and What Are Its Benefits?

An LLC provides limited liability protection and pass-through taxation, shielding owners from business debts while simplifying tax obligations. Forming an LLC requires choosing a state, selecting a name, appointing a registered agent, and filing necessary documents.

What Does DBA Mean, and How Do You Register It for Your Business?

A DBA lets businesses use a different name without changing their legal structure. Registering requires checking availability, filing paperwork, and meeting state rules.

How Does an NNN Lease Differ from a Gross Lease?

An NNN lease shifts costs like taxes, insurance, and maintenance to the tenant, reducing landlord responsibilities. A gross lease includes these expenses in a single rent payment, offering cost predictability for tenants but higher landlord involvement.

How Does a Subsidiary Differ from a Parent Company in Corporate Structure?

A subsidiary operates as a distinct entity under a parent company, which oversees strategy, financial support, and compliance. Parent companies benefit from diversification, streamlined operations, and tax advantages while maintaining varying levels of control over subsidiaries.

How Do Revenue vs. Profit Impact a Company’s Financial Health?

Revenue reflects total earnings from sales, while profit accounts for expenses, revealing a company’s true financial health. Differentiating them helps businesses optimize strategies, ensure sustainability, and drive long-term success.

How Does Gross Profit Reflect Business Profitability?

Gross profit shows how much revenue remains after production costs, reflecting business profitability. Strong gross profit signals cost efficiency and financial health.

How Does a General Partnership Differ from a Sole Proprietorship?

A general partnership involves two or more individuals sharing ownership, responsibilities, and liabilities, while a sole proprietorship is owned and operated by one person. Partnerships offer shared decision-making and credibility, whereas sole proprietors retain full control but face unlimited personal liability.

How Is False Advertising Defined Legally?

False advertising laws prohibit businesses from making deceptive claims that mislead consumers into purchasing products or services. Consumers may file lawsuits, seek financial compensation, and hold companies accountable through federal and state regulations designed to prevent fraudulent marketing practices.

What Are the Differences Between a Sole Proprietorship and a Single-Member LLC?

A sole proprietorship offers simplicity but exposes personal assets to business liabilities, while a single-member LLC provides liability protection with additional costs. Choosing the right structure depends on factors like asset protection, taxation, and long-term business goals.

What Services Do Corporate Governance Lawyers Provide?

Corporate governance lawyers ensure businesses comply with legal standards, protect shareholder rights, and maintain ethical operations. They influence board decisions, draft policies, and navigate complex regulations to uphold corporate accountability and credibility.

How Can I Get Financial Help Starting a Business?

Small businesses can secure funding through grants, loans, and corporate programs without repayment. Federal, state, and private organizations offer financial assistance for various industries and needs.

W2 vs 1099: Key Tax Differences

W-2 and 1099 forms define tax obligations for employees and independent contractors. Proper classification prevents IRS penalties and ensures compliance.

How to Trademark Your Business Name

Protect your business name with trademark registration to ensure exclusive rights and safeguard your brand identity from infringement. Follow our step-by-step guide to navigate the trademarking process effectively while avoiding common pitfalls.

What Is an LLC Certificate of Good Standing and How Can You Get One?

A Certificate of Good Standing is a document issued by the government that certifies that a business has filed all reports and paid the necessary fees with the Secretary of State's office.

What Does Fiduciary Duty Mean in a Legal Context?

Fiduciary duty is a legal obligation of the highest degree for the person in trust to act in the beneficiary's best interest.

Service Charge vs Tip: Is the service charge the same as a tip?

A service charge is mandatory, and a tip is at the discretion of the customer. Under California law service charges are not considered tips. Service charges are the amount a customer is required to pay in addition to the beverages and foods purchased at a restaurant. Service charges belong to the restaurant and not to the employees.

California Attorney: 75 Affirmative Defenses to Breach of Contract

Affirmative defenses are legal defenses which give you a good reason for not being held responsible for breaking the contract. This article examines 75 affirmative defenses to a claim for breach of contract.

When Is a W-9 Not Required?

A W-9 is not required when payments to a vendor are under $600 in a calendar year. Payments made through credit card processors or platforms like PayPal also do not require a W-9.

Is Small Business Loan Secured or Unsecured

A secured loan places the burden of risk on the borrower. An unsecured loan shifts the burden of risk more to the lender. A small-business loan is secured when backed by specific collateral, typically business assets, such as equipment, inventory or real estate. Secured loans, including those secured by the Small Business Administration (SBA), typically range from $50,000 to $5 million.

Where Can I Cash a Business Check?

Business check may be cashed at a check-cashing service: Walmart Money Center, Payday Advance, Ingo Money, Moneytree, Money Mart, ACE Cash Express, Speedy Cash, etc.

Do I Need a License to Sell Homemade Food in California?

In order to run a homemade food business in California, an individual must get a permit from the county health department. There are two types of permits to choose from.

What is Double Taxation? Types, Causes, and Solutions Explained

Double taxation occurs when the same income is taxed twice, impacting individuals and businesses. Explore its types, causes, and solutions like DTAs and exemptions.

What Does Net Income Mean for Businesses and Individuals?

Net income, often called "the bottom line," measures financial health by showing the remaining profit after expenses and deductions. For individuals and businesses, net income is a critical metric influencing budgeting, performance assessment, and decision-making.

What Does It Mean to Commingle Funds: Legal and Financial Risks

Commingling funds blends personal and business finances, risking legal liability and corporate protections. Proper separation safeguards assets and ensures accurate financial tracking.

What Is the Difference Between an S Corp and a C Corp?

Compare S Corp and C Corp structures, focusing on taxation, ownership, and key benefits. Understand how these distinctions impact businesses.

What Is a Business Plan Executive Summary?

An executive summary in a business plan outlines your company's mission, market positioning, and financial projections in a concise format. It highlights key points to capture investors' interest, acting as a compelling introduction to your business plan.

Average Revenue For Small Business

Small businesses with no employees have an average annual revenue of $52,000. The average small business owner makes $73,000 a year. In general, the average revenue is around $52,000 per year for a company with a single owner/employee.

Is it illegal not to pay taxes when being paid under the table?

While some employers pay employees in cash, paying employees under the table in California is illegal.

What Is Trademark Dilution? Understanding Its Impact on Well-Known Brands

Trademark dilution threatens the uniqueness and reputation of famous brands, often through tarnishment or blurring. Understanding dilution laws and defenses protects businesses from costly legal battles and potential brand damage.

What Is the Legal Definition of False Advertising?

False advertising involves untrue or misleading claims about products or services, violating laws enforced by the FTC and state authorities. Companies face legal consequences like fines, lawsuits, and cease-and-desist orders for deceptive practices under statutes like the Lanham Act and California's False Advertising Law.

Payment Upfront Meaning & 5 Tips for Getting Upfront Payments from Customers

Upfront payments can be beneficial to many small business owners. Upfront payments protect the owner emotionally and financially. There is no fear of customers disappearing without paying for products or services. It is also a great method by which to build trust with customers. It can also help improve cash flow, thereby letting the business grow and flourish.