Updated on April 18th, 2023
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
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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?
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.
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.
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.
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.
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.
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