As an entrepreneur, understanding the legal landscape is critical for your company's success.
Many companies hire a business lawyer to navigate the complexities of business law and address legal matters. But entrepreneurs and small business owners seldom have those kinds of resources.
So you might seriously be wondering if you can handle the legal stuff on your own—or if you need to consult someone. If you are asking what does a business lawyer do to get an idea of the tasks and responsibilities they normally handle, read on. Here’s the role of business attorneys and how they impact your venture.
The role of a business lawyer
A business lawyer, often called a commercial or corporate lawyer, is not just a legal advisor; they are a strategic partner who helps a company minimize risk and manage the legal aspects of running a business.
Business lawyers might work within law firms that specialize in corporate and commercial law, or they might work for a company directly. They act as advisors and advocates, providing guidance, supporting a company's growth, and protecting it from legal risks. Business lawyers assist with mergers and acquisitions, guiding companies through the legal process. They also negotiate and advocate on behalf of clients for disputed contracts. Their expertise spans various areas, ensuring that your company operates smoothly and within the bounds of the law.1
Business lawyers play a crucial role in helping growing businesses navigate legal affairs.
So, how does this relate to entrepreneurs?
They offer advice on how to structure your new business
One of the first steps in starting a business is to choose the appropriate structure for the business type.
Business lawyers guide entrepreneurs through formation, including filing necessary paperwork and drafting foundational documents. A business lawyer educates clients on the different structures and their implications, such as sole proprietorship, partnership, S-Corp, and LLCs.
Established businesses benefit by having a business lawyer review their policies and agreements to prevent disputes and strengthen their legal standing. They explain how each option affects liabilities, taxes, and operational flexibility. The foundational advice provided is crucial for setting a company up for success.
Types of business structures
- Sole Proprietorships: Simple but offer no personal liability protection.
- Partnerships: Involve two or more owners sharing profits and liabilities.
- Limited Liability Companies (LLCs): Flexible and protect personal assets.
- S Corporations: offer pass-through taxation with corporate liability protection.
- C Corporations: Separate legal entities, suitable for larger companies seeking investors.
They draft and review contracts
Contracts are the backbone of business transactions. Business lawyers provide essential legal services and are skilled in drafting and reviewing legal documents to ensure they protect your interests.
They help develop and write contracts, including contractor agreements, that clearly outline the terms of agreements, whether a company is hiring employees, negotiating sales or entering into a partnership. By thoroughly reviewing contracts, the risks of disputes are minimized, and it ensures compliance with applicable laws.
Here are some common types of contracts they handle:
- Business entity agreements: These contracts establish the structure of a company, such as partnerships, LLCs or corporations. They outline ownership, responsibilities and profit-sharing arrangements.
- Nondisclosure agreements (NDAs): This agreement protects sensitive information shared between parties, ensuring confidentiality during negotiations or partnerships.
- Employment contract: Business attorneys compose contracts for employees and independent contractors, covering terms of employment, termination clauses, and compensation.
Other contracts include sales agreements, commercial lease agreements, vendor and supplier agreements and partnership and joint venture agreements.
For more on this, check out What is Contract Law, and Why Does it Matter in Business?
They establish regulatory compliance
One of the most critical functions of a business attorney is ensuring regulatory compliance.1 This means understanding the laws that apply to a company's industry, from employment regulations to environmental laws. Business lawyers will then teach the company and employees how to navigate the complex regulatory landscape.
They are skilled at navigating complex rules to help avoid legal pitfalls that could lead to costly fines or litigation. A proactive approach is essential for maintaining a business's operational integrity and reputation. Afterall, ignorance isn’t much of an excuse if you break a law.
Common compliance areas include:
- Employment laws (wages, anti-discrimination, workplace safety)
- Environmental regulations (waste disposal, emissions)
- Tax obligations (federal, state, local)
- Industry-specific regulations (healthcare, financial services)
They protect intellectual property
Today's markets for businesses are very competitive, and protecting intellectual property (IP) is vital.
Business attorneys assist many businesses, including small businesses, in securing patents, copyrights and trademarks to safeguard their brand identity and innovations.
They guide your business through registering your IP and help enforce their rights if someone infringes upon it. IP protection is crucial for maintaining a competitive edge and ensuring a company owns its property.
They establish employment policies
As a business grows, hiring employees is a necessity. Business attorneys provide guidance on employment contracts, workplace safety, sexual harassment and compliance with labor laws.
They help navigate discrimination claims, employment rights and termination procedures. Ensuring that employment practices are legally sound enables a company to create a positive and safe work environment while minimizing the risk of legal disputes.
They resolve legal disputes
Conflict is an inevitable part of running a business. Whether you have a disagreement with a partner or a supplier, business attorneys can represent your interests.
Business attorneys address a range of legal issues that arise during the lifecycle of a business. They help resolve problems and disputes through mediation, negotiation, or litigation when an issue arises, ensuring the company is protected. Their ability to navigate conflicts can prevent a wrong decision that might cost money, time and stress.
Here are some of the issues a business lawyer can handle...
- Contract disputes: When conflicts arise over the terms of a contract, business lawyers step in to negotiate resolutions or represent clients in court.
- Compliance: They ensure businesses comply with local, state, and federal laws, including regulations, environmental laws and industry-specific rules.
- Employment issues: They handle workplace disputes, sick leave, wage and hour issues, discrimination claims, and compliance with labor laws.
Other issues they handle include mergers and acquisitions and litigation.
They keep the business in compliance with financial laws
Financial compliance is another critical component of business operations. Understanding tax obligations is crucial for all business owners. Business attorneys provide insights into tax laws. This helps business owners ensure financial compliance and navigate the complexities of tax compliance and planning. They ensure that the business complies with tax regulations, thereby minimizing the risk of audits and penalties. This guidance is essential for maintaining the business's financial health and stability.
They review and negotiate property agreements
Whether a business owns property, buys property, leases office space or develops real estate, a business lawyer plays a critical role in protecting the company's interests.
Real estate transactions can be legally complex, and missteps can lead to long-term financial consequences. In real estate, business attorneys negotiate sales, explain any confusing real estate terms and handle property disputes. They can also help with any problems related to the violation of tenant laws for lease agreements.
The most common practice for a business lawyer in real estate matters is contract review and negotiation. Business attorneys carefully review purchase agreements, lease terms, and financing documents to ensure the terms are fair and favorable. They negotiate on behalf of the company to clarify responsibilities, rent increases, maintenance duties, and terminal clauses.
Specializations in business law
Business law covers many specializations. Some important areas include:
- Corporate law: Covers business structures, governance and big transactions like mergers.
- Contract law: Governs agreements between businesses or individuals.
- Real estate law: Involves buying, selling or leasing property for commercial use.
- Securities law: Deals with raising money by selling stocks and complying with investor rules.
- Intellectual property: Protects patents, trademarks and copyrights.
- International business law: Focuses on global deals and foreign regulations.
- Bankruptcy law: Helps companies restructure or close in an orderly way.
- Administrative law: Involves working with government rules that affect businesses.
Why business lawyers matter more than ever
As you can see, an experienced business lawyer is well worth hiring if you can swing it. There are more angles to the law than most people realize. If you are going to start your own business, you’ll want a solid awareness of which legal grounds you are stepping onto.
That doesn’t mean you need to study business law or take the law school admissions test (LSAT) to succeed as an entrepreneur. It just means the more you know, the better off you’ll be. And maybe as you begin the process of launching your business venture, you’ll know when to involve a legal professional.
For entrepreneurs, understanding what a business lawyer does isn’t just useful, it’s a smart step toward running a stronger, more resilient company.
If you'd like to learn more about the intersection between business and law, check out What is a Fiduciary? Understanding Ethical Responsibilities in Finance—another important area of crossover!
1Joseph Haddad, What Does a Business Lawyer Do? (11/29/2025) https://www.jjh-law.com/what-does-a-business-lawyer-do/
