Business Law

Business Law

Commercial law, also known as business law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. It is often considered to be a branch of civil law and deals with issues of both private law and public law.

Commercial law includes within its compass such titles as principal and agent; carriage by land and sea; merchant shipping; guarantee; marine, fire, life, and accident insurance; bills of exchange and partnership. It can also be understood to regulate corporate contracts, hiring practices, and the manufacture and sales of consumer goods. 

In the United States, commercial law is the province of both the United States Congress, under its power to regulate interstate commerce, and the states, under their police power. Efforts have been made to create a unified body of commercial law in the United States; the most successful of these attempts has resulted in the general adoption of the Uniform Commercial Code, which has been adopted in all 50 states (with some modification by state legislatures), the District of Columbia, and the U.S. territories.

Various regulatory schemes control how commerce is conducted, particularly vis-a-vis employees and customers. Privacy laws, safety laws (e.g., the Occupational Safety and Health Act in the United States), and food and drug laws are some examples.

Can and/or Should a Husband and a Wife Form a Single Member Disregarded Entity?

Specifically related to a limited liability company (“LLC”), what are the pros and cons of setting up the LLC as (i) a single member disregarded entity – i.e., husband and wife owning the membership interest(s) as joint tenants with right of survivorship; vs. (ii) a partnership – i.e., husband owning a 50% membership interest and wife owning a 50% membership interest? Most certainly when answering this question, consult with a tax professional, a legal professional, and the IRS.gov website where the IRS Tax Products Coordinating Committee has answered the underlying question.