What is a Corporate Lawyer?
The practice of law is divided into two major categories: litigation and corporate law. Corporate law may also be referred to as transaction law. Young attorneys will early in their careers choose one of these paths. Litigators are lawyers that practice the sort of law one commonly sees on television shows. Corporate, or transactional, lawyers are by contrast less involved in conducting lawsuits. They are instead involved in the building of business ventures. What does this entail?
The primary focus of corporate attorneys is to help a business avoid litigation. They might specialize in the following areas: corporate and tax law, intellectual property, or employee benefits. The role of a transactional lawyer is to ensure all parties understand their functions and rights so that litigation is less likely to result. In some cases, a corporate lawyer might team up with other transactional lawyers who specialize in certain subcategories of business law.
In short, a litigator is more often in courtrooms, resolving disputes between parties or reaching settlements. The purpose of a corporate lawyer is to help structure business deals and ventures in a way that minimizes risk. In other words, the transactional lawyer is there to advise businesses, not sue them.
So, what are the major ways in which a corporate attorney helps businesses?
1. The Creation and Operation of a Corporation
A corporation is a legal entity, the creation and organization of which is dependent on the laws of the incorporating state. Legally, a corporation is regarded as a “person.” This means that it is possible for a corporation to sue or be sued. Shareholders are immune from certain consequences or ramifications, such as corporate debts. Thanks to its legal status as a “person,” even if a corporation suffers the death or incapacity of one of its officials, the organization of the corporation will not change.
Corporate lawyers assist with the creation of a corporation. The corporate lawyer will draft articles of incorporation, which detail the start of the company and its internal management structure. A transactional attorney will also advise companies in the form of limited liability companies, limited liability partnerships, partnerships, and business trusts. The attorney who deals with each of these entity types must be familiar with different legal rights and responsibilities, tax burdens, and organization. The attorney will help company officials determine which form of entity is suitable, as well as assist them in establishing relationships to one another. Corporate lawyers are often called upon to help with startups. They might advise on leasing office space and drawing up employment contracts as well as other official documents.
