When business owners create a corporation, they try to anticipate for future growth. Despite those efforts, however, the corporation may need to reorganize in order to increase profits, client base, efficiency, and/or funding. The goal of reorganizing is to lay a stronger foundation for future success. Generally, reorganization only happens when businesses encounter serious issues, …
Category: Business Law
Civil Conspiracy in Texas
Texas courts acknowledge that two or more people may conspire against another and, in the process, cause damage to that person. If someone can prove that he or she has suffered damages as a result of others’ collusion, that person may file a lawsuit on the basis of civil conspiracy. Elements of Civil Conspiracy In …
New Regulations for Food Delivery Services in Texas
When the pandemic hit, more people than ever before turned to third-party food delivery services as restaurants closed and people hesitated to go out. Services such as DoorDash and GrubHub quickly found business booming. However, restaurants and customers began to complain about some of their practices. In response to these complaints, a new Texas bill, …
New Regulations for Food Delivery Services in Texas Read More »
Assumed Names in Texas
For any number of reasons, an individual or corporation may do business under an assumed name, also known as a DBA (Doing Business As). According to SOSDirect, “By filing an assumed name certificate, you are notifying the public that a particular business entity intends to conduct business under a name other than its legal name. …
Business Disparagement in Texas
Texas law offers recourse if someone knowingly and falsely spreads information which causes harm. The focus of that false information, however, determines whether the false information is classified as defamation or business disparagement. While each can be damaging to a reputation, business disparagement differs from defamation in a critical way. Defamation occurs if an individual’s …
Franchise Agreements in Texas
A successful business may want to increase growth through franchising. This type of expansion has some real advantages, especially in Texas where economic activity has outpaced most other states in the last several years. Ideally, the franchise business model is a symbiotic relationship in which everyone benefits. In a franchise relationship, the franchisor allows the …
Letters of Credit in Texas
The primary purpose of a letter of credit is to diminish the possibility that a party does not repay a financial obligation. A letter of credit guarantees that a bank or some other financial institution will make an intermediary payment on behalf of the customer. The creditor is paid first, and then the customer repays …
Converting to a Texas Entity
Texas is a business-friendly state in a variety of ways, drawing businesses nationally and internationally. Whether the business is a corporation, an LLC, or a limited partnership, if that business chooses to become a Texas entity, it must follow certain guidelines and procedures established by the Texas Business Organizations Code (BOC). Filing a Plan of …
Texas Nonprofit Corporations
Structurally, a nonprofit corporation resembles other corporations with a board of directors whose members are exempt from personal liability. While a corporation is formed primarily to profit shareholders, a nonprofit corporation is formed to provide a public service. Contrary to widespread belief, a nonprofit organization may in fact earn a profit; however, in a for-profit …
Registering an Out-of-State Company to Do Business in Texas
Texas has a reputation for being business-friendly and for encouraging businesses from outside of Texas to work here. If a business from another state or country wishes to operate in TX it must first register with the Texas Secretary of State. Steps to Registration The first step of registration is to visit TX SOS. Registration …
Registering an Out-of-State Company to Do Business in Texas Read More »