What is Business Organization Law?

What is Business Organization Law?Business organization law refers to the body of law that is responsible for the creation, management, and dissolution of businesses.

There are various ways to organize businesses, and each type of company structure involves a specific set of rules to be followed. Each type of business structure has its own benefits and limitations as well.

The scope of work of a business attorney involves determining the correct business structure for their client, completing paperwork filing, managing any organizational problems, and helping to dissolve the business if required.

Skilled and knowledgeable lawyers at SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) law firm provides professional legal advice and services to clients in Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and surrounding locations.


Assisting Clients to go into Business

Starting a new business involves determining the business structure and filing the necessary paperwork. The business founders rely on business organization attorneys to assist them in assessing the advantages and limitations of each possible business structure.

Furthermore, they seek help from their attorneys to draft the required paperwork and file it properly with the state.


Types of Business Structures

The state where the business intends to file will determine the type of business structure that a new organization can choose from. In most states, new entrepreneurs can choose from the following types of business organizations:


Sole Proprietorship

A sole proprietorship is a company owned by a single person. This structure offers the owner full control. However, sole proprietorship also makes the owner personally and financially liable for the operations of the enterprise.



A corporation refers to a business structure that is fully independent of its owners. A corporation can undertake most business-related functions similar to a person, such as entering into contracts, purchasing and selling products, and hiring personnel. The business founders will need to draft articles of incorporation to start a corporation.


Limited Liability Corporation or Limited Liability Company

A Limited Liability Corporation or Limited Liability Company offers some of the advantages of small business ownership such as legal protection for liabilities and debts and pass-through taxation.


S Corporation

This business entity is a type of corporation with distinctive characteristics. S Corporation owners can report profits and losses on their personal tax returns. They have limited liability and usually avoid double taxation which is possible with traditional corporations.



Partnerships are quite similar to sole proprietorships. However, more than one person is involved in this business structure. A partnership usually begins by filing papers with the state and cautiously defining the partnership terms.



An individual or group may be interested in organizing a charity to limit the legal liability for the organization’s work and to avoid taxation liabilities that are applicable to corporations. In order to properly start a charity, there may be requirements at the state and federal levels.


Most Business Organization Law is State Law

Primarily, state laws determine business organization. Each state can decide the types of business entities that are permissible and the regulations associated with those entities.

After a company is set up, there may be local and federal regulations to comprehend and follow. But at the inception level, business organization regulations fall mainly within the state of the business’s location.


Experienced attorneys at the SBEMP law firm serve clients from Palm Springs, Palm Desert, Rancho Mirage, Inland Empire, Orange County, San Diego, New Jersey, New York, and nearby locations for a range of legal practice areas.For more information or to request a consultation please contact the law offices of SBEMP (Slovak, Baron, Empey, Murphy & Pinkney) by clicking here. 

SBEMP LLP is a full service law firm with attorney offices in Palm Springs (Palm Desert, Inland Empire, Rancho Mirage), CA; Costa Mesa (Orange County), CA; San Diego, CA; New Jersey, NJ; and New York, NY.

DISCLAIMER: This blog post does not constitute legal advice, and no attorney-client relationship is formed by reading it. This blog post may be considered ATTORNEY ADVERTISING in some states. Prior results do not guarantee a similar outcome. Additional facts or future developments may affect subjects contained within this blog post. Before acting or relying upon any information within this newsletter, seek the advice of an attorney

Comments are closed.

Coachella Valley

Palm Springs
1800 East Tahquitz Canyon Way
Palm Springs, CA 92262
Indian Wells
74785 Hwy 111, Ste. 105
Indian Wells, CA 92210
Costa Mesa
650 Town Center Drive, Ste. 1400
Costa Mesa, CA 92626
SBEMP Attorneys LLP