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Business Law

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Doing business goes hand in hand with responsibility and liability. To run your business correctly, you need to know the business law governing the state where you base your business.

Business Law Differences

Business Law differs from state to state in the US.

Learn what your law mandates regarding your contracts, your transactions, and the applicable laws affecting the operations of your business in connection with salaries and wages, employment of workers, and relationship with your government. It is imperative.

Business law relates to other laws regarding your business, such as tax, bankruptcy, and intellectual property rights.

It also governs some transactions between businesses and corporations or between owners and employees.

When doing business, you need to know your liability as to the business owner or as a partner in the case of a limited liability company.


More than 13 million – or nearly 60% – of all small businesses
have experienced significant legal events in the past two years


Knowing what rights are enforceable and what provisions of the Uniform Commercial Code apply in your state and to each transaction will save you from any inconvenient and costly future litigation if and when a problem arises.

Knowing your obligations and responsibilities under the relevant business law will also save you from government fines. It will help you pay your taxes or renew your business license on time.


Read What problems might you face while setting up a business?

The 7 Major Categories of Government Business Law

Federal Business Laws constitute seven primary categories. However, depending on your specific trade, each type may not apply directly to your business.

1. Tax Code

For most small business owners, government regulation queries nearly always begin with taxes.

However, there’s more to taxes than just paying them. First, you need to know which business taxes to pay and when to pay them. Second, you must know how to plan your business to account for future tax payments. Finally, it can spare you a lot of headaches when writing the government a check.

Find out more: “How a tax attorney assists small businesses.”

2. Employment and Labor Law

If your business develops and you hire workers or freelance contractors, you will learn more about the vast array of federal and state labor laws.

Thankfully, if you’re starting, you’ll exploit the Department of Labor’s FirstStep Employment Law Advisor.

3. Anti-monopoly Laws

Any time a company conspires with its competitors, third-party vendors, or alternative relevant parties, it will breach anti-monopoly – or antitrust – laws.

4. Advertising

A good advertising strategy will do wonders for your business.

However, before you dive in, you’ll need to confirm that you’re playing by the rules and adhering to business law.

For example, you’ve got to make sure any claims you make in your ads aren’t mendacious or deliberately deceptive.

5. Environmental laws

Depending on your trade or business, you might become familiar with numerous environmental protection laws.

It is particularly pertinent if you’re marketing cleaning products, food, or something that claims to be natural, organic, or eco-friendly.

6. Privacy

Businesses with staff and workers end up amassing sensitive personal data about their workers.

As a result, there are various rules and regulations about how employers should save and secure this information and ensure they follow business law.

7. State Licensing

We’ve focused on federal laws and government regulations on the business thus far. However, that doesn’t mean that there aren’t ample state regulations to understand your small business.

Several state and local governments have their regulations for businesses. So it’s often just as important to get a grasp on them as it is on their federal counterparts.


Important: The articles available on are neither legal advice nor a replacement for an attorney. The contents are general information and guidance concerning different legal issues. We make sure that these articles prove helpful to you, but we do not promise or guarantee that they are suitable for your condition. We also do not take responsibility for any loss that might cause to you using these articles. Hence, we strictly suggest you get expert legal advice. Consult or hire an attorney in case of any doubt.