Corporate law encompasses the vast range of rules, regulations, rights, and responsibilities of businesses and the people who run them. Business owners may face profound ramifications if they neglect to consult a lawyer well-versed in the statutes before incorporating and when entering agreements. Here are three areas where business owners benefit immeasurably by consulting an attorney.

Why Corporations Rely on Business Lawyers

1. The Right Business Formation Is Crucial

There are several ways to structure a corporation, depending on the size, scope, and mission of the company. The two most prevalent are S-corps and C-corps. Smaller companies often go with an S-corp structure, while larger ones tend to be C-corps. The primary difference is how the corporation pays taxes. However, since taxes are a central responsibility of any corporation, this decision is no small matter. C-corps are taxed as standalone entities, while S-corps are taxed through individual tax filings by the owners. A corporate law attorney will help you assess the best structure to protect your assets and encourage growth.

2. Informal Agreements Can Be Legally Binding

Successful executives often strike deals and make agreements at the spur of the moment. However, even though a handshake over lunch seems casual, it can be legally binding in some circumstances. If you renege on informal agreements or change the terms, the other party may have a case for breach of contract. Thankfully, corporations who have in-house counsel or corporate attorneys on retainer are more equipped to avoid or quash such lawsuits.

3. Standard Contracts Are Not Enough

Cookie-cutter contracts may seem to be an effective way to save money on legal fees, but the terms in these boilerplate agreements are rarely sufficient to address the unique needs of your business. Your contracts should account for the exact details of the relationships you're entering and note the specific rights and obligations of each party. Have a corporate law attorney draw up contracts you send out and review any you’ve been asked to sign.

If you need legal guidance at any stage of your business's lifespan, from incorporation to acquisition or dissolution, trust the corporate law attorneys at MacVean, Lewis, Sherwin & McDermott, P.C. For more than 130 years, they've represented clients throughout Middletown, NY, and the Hudson Valley region. They also offer services for personal injury, elder law, criminal defense, and employment law matters. Call (845) 343-3000, visit them online, or contact them via Facebook to make an appointment.