Starting a Texas-based LLC with a mix of U.S. citizens and foreign investors is a common way to launch a business. While the state of Texas is generally “open for business” regardless of where the owners reside, the legal and tax landscape shifts significantly when non-U.S. persons are involved. If you are a foreign investor […]
Category: Business Law
Can Minors Sign NIL Deals in Texas?
In the age of social media influencers and high school sports stars, the ability to monetize one’s Name, Image, and Likeness (NIL) has become a major point of discussion. However, when the person in question is under the age of 18, the legal landscape in Texas becomes significantly more complex. While a teenager might be […]
Using Two LLCs For Asset Protection
Many business owners hear the advice that they should operate with both a holding company and an operating company. While it might sound like extra paperwork, this “two-LLC” structure is a foundational strategy in Texas asset protection, designed to shield valuable assets from the risks of daily business operations. The Holding Co. vs. The Operating […]
Can I Use a Nonprofit to Avoid Paying Tax?
It is a common “secret sauce” myth on social media that forming a nonprofit is the ultimate loophole to avoid paying income tax while still getting rich. While nonprofits do benefit from tax-exempt status, using one as a shell for a for-profit business is not a savvy financial move—it is a criminal one. The Reality […]
How to Transfer a DBA When Selling a Business
When a business changes hands through an asset purchase, the buyer often wants to keep the existing “brand name” or DBA (Doing Business As) to maintain the goodwill built with customers. While it might seem like a complex process, transferring an assumed name in Texas is straightforward if the right steps are taken in the […]
Can You Copyright a Dance?
The world of intellectual property often struggles to keep pace with digital culture, and the question of whether a dance can be copyrighted is a complex one. The core of copyright law is meant to protect original works of authorship fixed in a tangible form of expression, and while dance can be protected, the law […]
Can You Copyright Fashion?
The laws governing intellectual property protection for clothing design, specifically copyright, vary significantly worldwide. In the United States, it is notoriously difficult to obtain copyright protection for functional apparel. The Scope of Copyright Protection Copyright law is designed to protect original works of authorship fixed in a tangible form of expression, typically covering creative works […]
The Step-by-Step Guide to Converting Your Sole Proprietorship to an LLC
Transitioning from a sole proprietorship to a Limited Liability Company (LLC) is a smart move for small business owners seeking asset protection and potential tax advantages. This process involves a series of necessary legal and administrative steps to ensure the new entity is properly formed and separated from the owner. Step 1: Form the LLC […]
Why Small Businesses Don’t Like C-Corp Status
The C Corporation (C corp) is one of the oldest forms of business organization, and while it offers asset protection, it is widely unpopular among small business owners due to its default tax structure, which subjects income to double taxation. The Double Taxation Problem The primary reason small business owners generally avoid C corporations is […]
LLC vs. S Corp in Texas: A Fundamental Distinction
The distinction between a Limited Liability Company (LLC) and an S Corporation (S corp) often confuses small business owners, but the difference is clear: the LLC is the legal entity, and the S corp is the tax election. The LLC: The Legal Entity An LLC is a state-level legal entity that has become the standard […]