Many business owners discover the need for two legal experts in business: business lawyers and corporate lawyers. Although we often use these terms together, they describe distinct roles and fields of work. Having the knowledge to tell apart business lawyers from corporate lawyers allows you to contact them when you need them.
Our blog will review the main duties and differences between these two legal roles, so businesses and entrepreneurs can decide on the best legal help.
Who is a Business Lawyer?
A business lawyer or commercial lawyer, is responsible for handling the daily legal issues a business encounters. They are general advisors to organizations regarding common business issues, both for SMEs, startups and companies of any size.
Key Responsibilities of a Business Lawyer
- Contracts are Drafting and Review: Part of the work of business lawyers is to prepare and examine vendor contracts, employment contracts, service agreements and non-disclosure agreements (NDAs).
- Obtaining Certification: They guide companies in complying with state, national and local laws and in obtaining the required permits for operation.
- Dispute Resolution: Lawyers in business law resolve disagreements involving customers, partners, workers, or competitors, often by negotiating, mediating, or arranging arbitration.
- Guidance on Employment Law: They recommend practices for hiring, firing and other employment policies, as well as whether the company is staying within the legal limits of labour laws.
- Matters related to taxation and regulation: A business lawyer may offer advice on taxes, filling out forms and compliance with laws that direct daily company activities.
When Do You Require a Business Lawyer?
If you fall into any of these situations, you might find you need a business lawyer:
- You want to start a business and you need to think about the best business structure.
- Reaching the drafting or negotiating stage for commercial contracts
- Dealing with a workplace disagreement or an alleged unjust dismissal
- Requirement of support with regulatory filings
Who is a Corporate Lawyer?
A corporate lawyer is skilled in corporate law which sets out the rules for corporate companies. They are mostly responsible for designing the structure, governing and funding of corporations.
Important Duties Performed by a Corporate Lawyer
- Company Formation and Implementation: Having a corporate lawyer ensures that a business is legal, that articles of association are established and that the best type of company for your needs is chosen.
- Corporate Governance: They check that a company follows all the legal guidelines of governance, including what directors must do and how to hold shareholder meetings.
- Mergers and Acquisitions or M&A: Lawyers working for corporations manage the legal aspects of business mergers, acquisitions, amalgamations and joint ventures.
- Matters Connected to Securities and Shareholding: They explain share issuance, how to manage relationships with shareholders and ensure securities laws are followed.
- Corporate Financing: They take care of legality for investments in cyber security, loan agreements, funding rounds, convertible notes and more.
When Do You Need a Corporate Lawyer?
You might have to hire a corporate lawyer if you deal with any of these situations:
- Doing business by forming a corporation or adjusting an existing enterprise
- Looking for investment from others or offering company shares
- Working toward a merger, acquisition or joint venture
- The process of making corporate policies or shareholder agreements
- Managing problems linked to corporate governance or the board
Key Differences Between Business Lawyers and Corporate Lawyers
| Feature | Business Lawyer | Corporate Lawyer |
| Focus Area | Day-to-day business operations and legal compliance | Legal aspects of corporate structure, governance, and growth |
| Client Type | Small businesses, startups, and individual entrepreneurs | Corporations, investors, and high-growth companies |
| Common Tasks | Drafting contracts, resolving disputes, and employment matters | M&A, restructuring, investor deals, shareholding issues |
| Legal Scope | Broader across business law and regulatory compliance | Specializing in corporate law and transactional matters |
| Involvement | Regular operational involvement | Periodic strategic involvement |
Choosing the Right Legal Professional for Your Business
- Identify Your Legal Needs: Decide what legal services you are seeking. Whenever your business requires a customer contract or an employment policy, a business lawyer can help. When you’re planning to issue shares or negotiate a merger, a corporate lawyer is likely needed.
- Consider the stage of your Business: At first, startups and small businesses only require the help of a business lawyer. As soon as the company starts seeking investment or forming important ties, a corporate lawyer becomes necessary.
- Consider a law firm with a diverse team: Many law firms provide both business and corporate legal services. Therefore, companies can obtain legal assistance from the start until their needs change.
Conclusion
Business lawyers are not the same as corporate lawyers, though they often support and back each other’s work. A business lawyer helps your company stay compliant and work smoothly and a corporate lawyer handles the important concerns and plans that affect your company’s structure and future. Your decision about a lawyer should be based on where your company stands and what you’re planning. It’s usually helpful to select a firm with experts in both business and corporate law for ongoing compliance and positive results.
FAQs
1. Can a corporate lawyer prepare commercial contracts?
Nonetheless, their main attention is on issues affecting companies. Common commercial agreements are better managed by business lawyers.
2. When forming a company which type of lawyer should I approach?
If you need to form a company, a corporate lawyer is your ideal choice.
3. Can a start-up rely on having both business and corporate lawyers?
At the outset, your business requirements might only need a business lawyer, but as your start-up expands and searches for substantial funding, it’s more important to retain a corporate lawyer.
4. Can one individual practice both business and corporate law?
Yes. In particular, those who work in solo or small firm practices may be experienced in serving both consumer clients and business clients.
5. How much do clients pay business and corporate lawyers for their services?
How much you pay depends on who is doing the job, where it’s done and how involved the task is. Some agencies bill their customers hourly, but others provide packages tailored to start-ups and businesses.
