What are the benefits of a corporate lawyer?

The are many benefits of hiring a corporate lawyer for your business which includes: avoiding litigation, enforceable contracts, develop employee policies, proper licensing, etc.

Author: Brad Nakase, Attorney

Email  |  Call (888) 600-8654

The primary benefit of hiring a corporate lawyer is to help a business avoid litigation. Many corporate attorneys specializes in the following areas: intellectual property, corporate and tax law, and employee benefits. The role of a transactional lawyer is to ensure all parties understand their rights and functions so that litigation is less likely to result. In some cases, a corporate lawyer might team up with other transactional lawyers who focus on certain subcategories of business law.

The practice of corporate law is divided into two main categories: corporate law and litigation. Corporate law may also be called transaction law. Young lawyers will early in their careers take one of these routes. Litigators are lawyers that practice the sort of law one commonly sees on television shows. Corporate, otherwise known as transactional, lawyers are by contrast less concerned with conducting lawsuits. Rather, they are involved in the building of business ventures. What does this entail?

In short, a corporate litigator is more often in court, concluding disputes between individuals and groups or reaching settlements. The purpose of a corporate transactional lawyer is to help structure business deals and ventures in a way that minimizes risk. That is to say, the transactional lawyer is there to advise businesses, not sue them.

So, what are the major befits that a California corporate lawyer helps businesses?

  1. The Creation and Operation of a Company

Corporate lawyers assist with the creation of a corporation. The corporate lawyer will create articles of incorporation, which detail the start of the company and its inside management structure. A transactional attorney also advises companies in the form of limited liability companies, partnerships, limited liability partnerships, and business trusts. The attorney who deals with each of these entity types must be familiar with different legal rights and responsibilities, and organization, and tax burdens. The lawyer will help company officials determine which form of entity is suitable, as well as assist them in establishing connections to one another. Corporate lawyers are often asked to help with startups. They might advise on leasing a workplace and drawing up employment contracts as well as other legal documents.

  1. Merging and Buying

Corporate attorneys are also engaged in helping businesses with acquisitions and mergers. A merger happens when one company combines with another, and an acquisition is the act of one company buying another. Via these methods, a business may buy more property or facilities. The corporate lawyer is responsible for reviewing these purchases. He must be familiar with the company’s financial statements, current holdings, and litigation,. By knowing the company inside and out, the attorney can give advice to corporate officials regarding possible liabilities and how to appropriately proceed with merging or buying. It is the corporate lawyer’s responsibility to draw up the acquisition or merger agreement and specify the rights, duties, and liabilities of each party.

  1. Building and Growing Businesses

An attorney that specializes in venture capital is involved in helping startups find money. Along with identifying financing, lawyers associated with venture capital companies will help grow these new businesses. Their services might include writing articles of incorporation, negotiating mergers and acquisitions, and licensing. This type of law is overall not as adversarial as compared to that dealing solely with corporate mergers and acquisitions. Put otherwise, because it is largely focused on financing, venture capital is a less combative area of law.

  1. Financing Individual Projects

Another category of corporate lawyer is the project finance attorney. These lawyers focus on specific large-scale projects. These projects might include, for example, the building of a power plant, a pipeline, a refinery, or a transportation system. The project finance attorney associated with one of these projects must first establish a legal entity, which might be a partnership or corporation. This entity will exist only for the duration of the project. The lawyer will then be charged with drafting contracts and negotiating financial agreements.

  1. Securities Law

Securities law is another area in which a corporate lawyer might specialize. Under the federal Securities Act of 1933, companies that offer securities to the public must be registered with the federal government. This means that such a company has to file reports with the Securities and Exchange Commission (SEC) and make the content of these reports available to shareholders. Corporate attorneys who specialize in securities law are responsible for preparing these reports and any routine or special disclosures. Whenever something might affect the price of stock, such as poor financial performance or a lawsuit, a corporate lawyer will be well-versed in creating and issuing the needed reports.

Have a quick question? We answered nearly 2000 FAQs.

See all blogs: Business | Corporate | Employment Law

Most recent blogs:

Material Breach of Contract

A material breach of contract occurs when a party fail to perform a contract's terms making the primary purpose of the contract not met, the breach is considered material.

What Type of Business Is a Partnership?

A partnership is the simplest business structure where two or more people are owners of a business. The types of business partnerships include general partnership, limited partnership, and limited liability partnership.

What Is Company Culture?

A company culture is how things get done in the workplace. Company culture can more be described as core values or operating principles used to set the tone for the company's overall operations and success.

What is a sole proprietorship?

A sole proprietor is someone who owns an unincorporated business by himself or herself. A sole proprietorship is a business that can be owned and controlled by an individual.

Sole Proprietorship vs. LLC

Sole proprietorships are popular for self-employed professionals, freelancers, and contract workers, while LLC offers personal liability protection than sole proprietorship.

Is it legal to sell homemade food in California?

Yes, you can sell food from home so long as you have California-required health and food handling permits and business licenses. You must get a permit to sell food from home from the county health department in California. 

How to Incorporate a Small Business in California?

To incorporate a small business in California, file an Articles of Incorporation with the California Secretary of State's office. After you file the Article of Incorporation, create corporate bylaws, and elect your initial director(s).

6 Steps for Planning a Business Grand Opening

1. Create Goals for the Event, 2. Begin Planning Early, 3. Stick to the Budget, 4. Have the Right Insurance, 5. Advertise Before the Event, 6. Offer Food and Entertainment

10 Facts About Business Before Starting A Business

1) More than 50% of new businesses survive their first year in business. 2) Less than 50% of family-owned businesses are passed to their children. 3) 40% of business experience challenges in the supply chain…

S Corp vs C Corp – Differences and Benefits

The main difference between an S Corp and a C Corp is that for a C Corp, the corporate profit is taxed to the company, and the dividends to the shareholders are also taxed. In contrast, for an S Corp, the profit is taxed to the shareholder but not to the corporation. Generally, small businesses are S Corps, and major companies are C Corps, e.g., Apple, Microsoft, Caterpillar, John Deer, etc.

How to Form a Corporation in California?

To form a corporation in California follow these steps: 1) Write a one page Article of Incorporation, 2) File the Article of Incorporation with the California Secretary of State, 3) Elect corporate board of directors, 4) File Statement of Information with Secretary of State.

What are the benefits of a corporate lawyer?

The are many benefits of hiring a corporate lawyer for your business which includes: avoiding litigation, enforceable contracts, develop employee policies, proper licensing, etc.

What is Commercial Litigation?

Commercial litigation refers to litigation (lawsuit) that involves commercial or business disputes in court between two or more parties.

How to Get Rid of a 50 50 Business Partner.

How to Get Rid of a 50/50 Business Partner. One method to get rid of a 50/50 partner is to file a business partnership dissolution in the state your company was formed to end the partnership.

Personal Assistant Scam

A personal assistant scam typically involves a perpetrator putting out an ad to hire a personal assistant. Then, when the perpetrator purportedly hires the personal assistant, the assistant is asked to buy something with their own money with the promise to be repaid. The perpetuator then disappears after receiving the goods.

Fiduciary Responsibility Definition

A fiduciary responsibility refers to an organization that must put another person’s best interest first. A fiduciary duty is the highest standard of care in law. For example, a lawyer owes a fiduciary responsibility to the clients, a doctor owes a fiduciary duty to a patient, and a trustee owes a fiduciary duty to a beneficiary.

What is profit formula and how to calculate profit formula?

A business profit is revenue minus expenses. The profit formula in accounting calculates the net gains or losses incurred by the business for a period by subtracting the total expenses from the total income: Total Income – Total Expenses - Profit

What is invoice reconciliation?

Invoice reconciliation is the process of matching bank statements to incoming and outgoing invoices. The purpose of invoice reconciliation is to confirm that the data entry is correctly matched with every invoice.

What Makes a Verbal Contract Valid

A verbal contract is valid when contractual elements are satisfied, such as evidence of an offer, acceptance of the offer, and consideration which is an exchange of value between the parties.

Marketing Transport Company

The easiest way of growing your list of clients is to schedule a meeting with businesses that do a lot of shipping and introduce your transportation company. Then, engage an internet presence to market your transportation business.

What Can You Do with a Toxic Business Partner?

A bad partnership could lead to profit loss and toxic company culture. The first way of dealing with a toxic business partner is to schedule a meeting to discuss your concerns calmly.

Disruptive Business Model

Disruptive business models are disruptive innovations that bring new business ideas or technology to existing markets. A disruptive business does not fit the profile of a standard business model. Amazon is considered as one of the world's most disruptive companies.

How to Get a Business Loan with Bad Credit

For small business owners with bad credit, the easiest place to get a business loan is with the SBA. Although not easy, entrepreneurs with bad credit can get a small business loan.

How to Get a Small Business Grant

You can get a small business grant from the Small Business Administration. Also, check your local government for small business stimulus grants.

Pros and Cons of Etsy

Etsy Pro: Your products are given a large audience, and you easily sell your merchandise. Etsy Cons: You can only sell handmade or vintage merchandise, and there are many competitors.

What is a Breach of Contract in California?

A breach of contract in California arose when a party to a contract failed to achieve a legal duty the contract created. When a party to a contract fails to fulfill the terms of a binding contract, they are liable for damages for breaching the contract.

Business Equipment Leasing Pros and Cons

One advantage of equipment leasing is that you don’t need to come up with all the cash to buy the equipment. One disadvantage of equipment leasing is higher overall costs than outright purchasing the equipment.

LLC vs DBA

The main difference between an LLC and a DBA is that an LLC is a business entity, and a DBA is a registered fictitious business name. Sole proprietors, general partnerships, and LLC can register for a DBA.

Contact our corporate attorney to assist with your business.

Please tell us your story:

1 + 1 = ?

© Copyright | Nakase Law Firm (2019)