What Is U.S. Business Law?

by Marcello Viridis, Demand Media

Generally, any law that affects how a business is run in America can be considered part of business law in the United States. Accordingly, it can include subjects from bankruptcy to information privacy law. A few traditional areas, however, form the core of U.S. business law and are required knowledge for any deeper understanding of the field.

Business Organizations

Business associations are the laws that regulate the formation, functioning and demise of a business. The key focus in business organizations is with publicly held companies, including the requirements of formation, the role and duty of directors and company officers, and the power of shareholders. Business organizations also include the laws surrounding partnerships, limited liability corporations and closely held companies.

Tax Law

Tax law deals with all the rules, regulations and requirements as set forth in the federal Internal Revenue Code as well as specific state tax codes. Without a deep understanding of tax laws, a business may find itself in violation of the law, whether underpaying corporate income tax or unable to take advantage of a benefit allowed in the law such as the "pass through tax" of an S-corporation.

Securities Regulation

Securities regulation focuses on how stocks or securities are issued and managed. Specifically, it deals with the Securities Act of 1933, which details, among other points, what a company must do in preparation to offer stocks (initial public offering), and the Securities and Exchange Act of 1934, which created the Securities and Exchange Commission and regulates what companies report and how they manage their stocks after the initial public offering.

Intellectual Property Law

Often, a company's main source of revenue is the result of a product or process that it exclusively designed or manufactured on its own. Intellectual property law regulates how a company can protect itself from the theft or unauthorized use of its creations. Key areas in the law include copyright, trademark and patent law.

Corporate Finance

Corporate finance deals with the fundamental principle of what a company and its stock worth. The law outlines what financial tools are used to determine value, the duties that directors have to ensure value and the legal rights that various parties, including shareholders, have in regard to securities and dividend payments.

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