
Understanding a company’s legal needs starts with distinguishing between business law vs corporate law. While business and corporate law overlap, they serve different purposes. Business law addresses the broad range of legal issues affecting companies of any size or structure, from contracts and employment to regulatory compliance. By contrast, corporate law focuses on corporation formation, governance, and operation. In short, corporate law is one component of the broader business law umbrella.
At Berluti McLaughlin & Kutchin LLP (BMK), we help businesses across Massachusetts navigate business and corporate legal matters. Our team counsels entrepreneurs, executives, and family-owned companies on creating and maintaining businesses. We combine practical guidance with sophisticated legal strategies to help our clients protect their interests and grow their businesses. Whether you need help launching a new venture or resolving a high-stakes conflict, we are here to be your long-term strategic legal partner.
Distinguishing Business Law vs Corporate Law
Given the overlap between corporate and business law, some people wonder, Is business law the same as corporate law? In short, no. Corporate law is one aspect of the broader category of business law.
Yet, because corporate law is so complex and business law covers such a wide range of topics, lawyers may use the terms distinctly. When we do, business law generally deals with legal aspects of day-to-day operations, while corporate law typically focuses on the framework governing corporations. Many lawyers who practice corporate law also practice business law and vice versa, but not all do.
Thus, the primary difference between business and corporate law lies in their scope and focus, particularly with respect to:
- Company structure—a business entity’s legal structure, including corporations, limited liability companies (LLCs), partnerships, and sole proprietorships;
- Governance and foundational documents—documents that establish a business and govern how it is run;
- Regulatory compliance—compliance with regulations establishing what a business can, should, must, and must not do;
- Contracts and transactions—contracts between businesses and others, including selling businesses or business assets;
- Employment and labor law—issues related to hiring, firing, compensation, and employee treatment; and
- Disputes and litigation—legal intervention when conflicts arise between the business, individuals who operate the business, other businesses, or individuals.
In short, corporate law typically involves internal goings-on, while business law involves external goings-on.
Specific Differences Between Business Law and Corporate Law
While corporate law zeroes in on the specific needs of corporations, business law offers broader coverage for businesses of any structure. Corporations fall under a different regulatory framework than other business types, particularly concerning taxation. Business owners must register corporations with the government, while sole proprietorships and partnerships do not require registration. Yet, LLCs require registration and are a unique business entity type that combines the benefits of entities that do not require registration with the benefits of entities that do.
Specifically, when comparing corporate law vs business law:
Overlap | Business Law | Corporate Law | |
Entity Structure | Establishing the business and advising on structure options | Advising on which entity type best suits a business owner’s goals and plans | Advising on whether to pursue a C or S corporation, how to treat an LLC like a corporation, and what that treatment means |
Governance and Foundational Documents | Drafting and reviewing business documents like bylaws, operating agreements, and articles of incorporation | Typically less technical, may cover broad details about decision-making, ownership, and power distribution | Typically highly technical, may cover specific details about decision-making, ownership, and power distribution |
Compliance | Ensuring internal and external legal compliance, including tax laws | Greater focus on employment laws and state-level reporting requirements | Greater focus on securities laws and federal-level reporting requirements |
Contracts and Transactions | Drafting, reviewing, and enforcing contracts between the business and others, and obligations within the business | Typically covers a wide range of contracts, such as vendor agreements, service contracts, and leases | Typically covers corporate transactions like mergers and acquisitions, stock sales, and corporate financing |
Employment and Labor Issues | Establishing policies, drafting documents, and resolving disputes related to employing workers | Typically covers employment contracts, workplace policies, and similar documents | Typically limited to high-level issues like executive compensation, board decisions, and special incentives |
Disputes and Litigation | Resolving disputes within the business and between the business and others, including pursuing or defending against litigation | Disputes between the business and employees or external parties, such as breach of contract, fraud, and employment disputes, such as claims of illegal discrimination or retaliation | Disputes between shareholders, directors, partners, and others involved in internal business operations |
Frequently Asked Questions (FAQs)
What Is the Difference Between Business Law and Corporate Law?
Business law covers legal issues that affect any business type, such as contracts, employment, and general compliance. Corporate law is a narrower field typically focused on corporate entities, governance, and legal obligations.
Can the Same Attorney Handle Both Business and Corporate Legal Matters?
Yes. Many attorneys, including those at BMK, are well-versed in both areas and provide integrated legal solutions for businesses of any type.
Is Corporate Law a Subset of Business Law?
Yes. Corporate law is generally considered a subset of business law dealing with specific issues within corporate entities.
Whether you are launching a startup, expanding a family business, or facing a dispute within your company, BMK is here to help. Our attorneys offer decades of combined experience and a client-centered approach built on responsiveness, integrity, and strategic planning.
We provide sophisticated legal counsel that aligns with your business goals and helps your business thrive. Contact Berluti McLaughlin & Kutchin LLP today to schedule a consultation. Let us be your trusted guide through the complex business and corporate law landscape.