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 […]
Category: Business Law
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 […]
Are Email Agreements Binding in Texas?
The question of whether an agreement reached through email is legally binding in Texas is common, and the answer, as with many legal issues, is: it depends. In Texas, the medium of communication does not determine whether a contract exists; the content of the communication does. Therefore, an email can absolutely constitute a valid and […]
What Happens When One LLC Member Dies?
The death of a member in a Limited Liability Company (LLC) can create immediate operational and legal challenges for the surviving owners. For a closely held, multi-member LLC, what happens next is determined by two main factors: the Operating Agreement and, if that document is silent, state law, which often forces the matter into probate. […]
How to Protect Your Texas Hunting Property from Liability
Using a Single-Purpose LLC and a Lease Structure to Separate Risk Owning rural land in Texas and leasing it for hunting can be a great income stream — but it also comes with serious risk. Hunting operations combine firearms, vehicles, alcohol, dogs, and unpredictable wildlife. One accident could lead to a lawsuit that puts your […]