We are independent & ad-supported. We may earn a commission for purchases made through our links.

Advertiser Disclosure

Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.

How We Make Money

We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently from our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.

What is the Difference Between Corporate and Business Law?

By Christopher John
Updated May 16, 2024
Our promise to you
MyLawQuestions is dedicated to creating trustworthy, high-quality content that always prioritizes transparency, integrity, and inclusivity above all else. Our ensure that our content creation and review process includes rigorous fact-checking, evidence-based, and continual updates to ensure accuracy and reliability.

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

Editorial Standards

At MyLawQuestions, we are committed to creating content that you can trust. Our editorial process is designed to ensure that every piece of content we publish is accurate, reliable, and informative.

Our team of experienced writers and editors follows a strict set of guidelines to ensure the highest quality content. We conduct thorough research, fact-check all information, and rely on credible sources to back up our claims. Our content is reviewed by subject matter experts to ensure accuracy and clarity.

We believe in transparency and maintain editorial independence from our advertisers. Our team does not receive direct compensation from advertisers, allowing us to create unbiased content that prioritizes your interests.

The difference between corporate and business law is that corporate law is a body of law focusing on how corporate entities are formed and managed. Business law is a general category that covers several areas of law such as employment law, contracts, taxes, and commercial transactions. All these areas affect business and business entities. Examples of business entities may include partnerships, limited liability companies (LLC), and sole proprietorships. Corporate and business law relate because a corporation is a type of business entity.

To understand the difference between corporate and business law, it helps to look at each category separately. Corporate law concerns the operations of a corporation, the duties of its management, the rights of shareholders, and other problems that apply mainly to corporations. Laws treat a corporation as a separate entity from its owners. A corporation has various powers such as entering contracts, filing a lawsuit, or getting sued. The owners of a corporation are shareholders and they have certain rights under corporate law.

For example, the directors and management of a corporation decide whether to authorize a corporation to make a distribution of dividends to its owners. A dividend is a share of profits that a corporation provides to its shareholders. The owners or shareholders of a corporation have the right to receive dividends. If the corporation does not authorize a dividend, the owners have the right to sue the corporation. A student studying corporate law would learn about the laws affecting this type of issue.

In contrast, business law includes several areas of law. For instance, a person studying business law would likely learn how employment law affects all types of business entities. Employment law concerns business practices such as hiring people, firing employees, and how a business entity must treat its employees. A business that does not follow these laws may end up in court defending against a lawsuit.

Business law also includes tax law. Business entities have to pay taxes like any ordinary person. So, a student in business law would learn about the tax obligations and tax advantages of the various types of business structures.

One way to understand the difference between corporate and business law is by seeing that business is an activity. It involves the selling and buying of goods and services, manufacturing, distribution, and a vast array of other activities. In contrast, corporate law is concerned with the activities of a corporation only.

MyLawQuestions is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.

Discussion Comments

By Sporkasia — On Feb 03, 2014

Drentel - In general, business lawyers deal with a wider area of the law practice than corporate lawyers, but they sometimes play in the same ballpark. Actually, people who train in business law and earn a degree and license to practice sometimes decide to focus their talents in a smaller arena such as corporation law.

If a lawyer can get a job at a large corporation, he or she the potential to earn a high salary, which makes corporate law more attractive than small business law for many people.

By Drentel — On Feb 03, 2014

While I have used the services of law firms to help with business issues, I didn't know there was a difference between a business and corporate lawyer before reading this article.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.

MyLawQuestions, in your inbox

Our latest articles, guides, and more, delivered daily.