A corporation is a formally registered legal entity, which United States law treats much like a person. Similar to human beings, companies can sue and be sued — and are subject to certain rules designed to govern their behavior. Corporate law encompasses these regulations. Find out what it entails, and why you might need a lawyer specializing in this area, below.

Why Do People Create Corporations?

A corporation shields business owners and shareholders from personal liability. If someone is hurt by a product created by the company, for instance, they can sue the company, but not the individual. Corporations also have tax advantages, such as the deductibility of health insurance premiums paid on behalf of an owner, and savings on self-employment taxes.

Different types of organizations exist. A close corporation is owned by only a few people and isn’t publicly traded, while a public corporation is on the stock exchange. An S corporation, meanwhile, enjoys certain tax benefits but lacks typical stock options.  

What Does Corporate Law Cover?

On one level, corporate law encompasses all of the legal issues that a business might face. This could include employment contracts, intellectual property, and product safety — to name a few possibilities. 

On another level, corporate law addresses the requirements a corporation must meet to benefit from the tax benefits and other advantages such a legal body receives. This could include holding an annual meeting with shareholders, for example.

For these reasons, a lawyer is useful when creating an entity. They can advise on which type of corporation is best depending on a few factors, such as the number of shareholders and whether you expect your business to own real estate. They can also suggest locations based on tax advantages, since corporations don’t have to be incorporated in their home state.

Don’t leave your budding business in inexperienced hands. For knowledgeable corporate law counsel in northeast Georgia, trust Adams, Ellard & Frankum P.C. The Clarkesville-based firm is known for providing professional services at affordable rates, and they pride themselves on giving each client personalized care. Whether you need assistance choosing a business structure or protecting your company from liability claims, their experienced team will provide the legal counsel you need. To schedule a consultation with an attorney, call (706) 754-2171 today.