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 […]
Category: Business Law
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 […]
Practical Considerations for the Number of Series in a Series LLC
Series LLC’s have become popular vehicles for separating assets within each series of a single LLC. While there is no legal cap, it’s wise to consider a practical limit. A common number mentioned in practice is around one hundred, though this is based more on prudent risk management than a legal rule. The main reason […]
Are Non-Competes Binding on Lawyers in Texas?
The Public Policy Behind the Ban In Texas, non-compete agreements for lawyers are not legally enforceable. This is not primarily to protect the lawyer, but rather to protect the public and the client’s right to choose their legal representation. The Texas Disciplinary Rules of Professional Conduct, specifically Rule 5.06(a), states that a lawyer shall not […]
Is an Offer of Admission a Binding Contract?
The season of college and private high school admissions brings a wave of excitement and tough decisions for students and parents. An offer of admission feels like a final step, but is it a legally binding contract? This question often arises when a school or a student changes their mind after an acceptance letter has […]
When Things Go Missing: Hotel Liability
When you travel, hotels offer a variety of convenient services, including laundry service. But what happens when you send out your clothes and they, along with some valuable items you accidentally left in them, go missing? A common assumption is that the hotel is liable for any and all losses. However, the legal reality is […]
The Anticybersquatting Act Explained
In the era of digital real estate, the rush to register valuable domain names has sparked a number of legal issues. Chief among them is cybersquatting—the act of registering, trafficking in, or using a domain name with bad-faith intent to profit from the goodwill of a trademark belonging to someone else. To combat this, Congress […]