Question

Why does business law play a vital role to small business owners?

Answer 1

Business law is necessary for small as well as big business owners to shape business in good direction.

1) trademark law : this is mandatory to follow for each business owner to select an appropriate name of business entity which is unique. If it is name matching with other entity then it may be problematic and may led to legal proceedings by another entity as theft of trademark or logo , motto, or name.

2)employment law : it's also necessary to aware about this type of law for small and big business owners as employees social Security through employee provident fund, bonus law for employee ,laws for afe and good place of work for each and every body, law realted to corporate Social responsibility . Some of these law applicable after certain limit or number of employmee in business ,quantity of turnover or or net profit.so small company or business must be aware about these things.

3) tax law : this is duty of each and every citizens ,corporates of any size to follow rule and regulations related to tax. If any companies or business not follow these law then they may faces legal proceedings and may cause damage to reputation and growth of business as well as investment chances may be left out from hand.

4) license and permit :environmental impact assessment and clearnce, land use permit and operation license,other type of license related to business specialisation necessary for making business a legal entity .

5) legal entity : this type of law decided about type of ownership, business legal structure like sole proprietorships, partnerships, C corporations, Limited Liability Companies etc. This type of rule or law must be followed to know about how much tax you have to pay,to decided about tax benefits ,risk management , capital or investment attraction etc after taking structure and size of business into account.