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 […]
Category: Business Law
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 […]
The Spearin Doctrine in Texas
Construction projects do not always go smoothly, to the consternation of property owners and construction companies. Sometimes the surprises are unforeseeable and unavoidable, but sometimes they are the result of carelessness, miscommunication, or poor planning. Given the time and expense of these projects, the courts have often been involved in determining liability when construction projects […]
Consulting Agreements in Texas
Businesses often make use of outside professionals, also known as consultants, to provide expert advice and opinions to improve a company’s operations. Many consultants are former employees who may prefer a more flexible job description or who may wish to focus on more than a single project. They may also be independent contractors who provide […]
Texas Employment Agreements
Most employment relationships in Texas are not expressly defined in a written agreement. Employees and employers generally have the right to end employment “at will,” as they choose, if that choice is not based on illegal reasons, such as race, age, or gender discrimination. Even though written employment agreements are not required by law in […]
Texas Distribution Agreements
When a company creates a product for sale, that company must determine the best way to distribute that product. Some companies choose to sell products themselves, but many companies work with people outside of the company to sell the product. Known as distributors, these companies work independently, sometimes buying products to sell with a markup […]
The Purpose of the Railroad Commission of Texas
The Texas Railroad Commission, also known as the Railroad Commission of Texas, performs an essential role in Texas, but its title is deceptive. Created in 1891 when the cattle industry was a dominant force in our state’s economy, the TRC at that time regulated the railroads which brought Texas cattle to markets across the country. […]
Bills of Sale in Texas
Having written documentation that verifies the change of legal ownership is always a smart idea. A written record that details the transfer of personal property is also known as a bill of sale. In Texas, a bill of sale is not legally required; however, creating or obtaining one is a valuable way to verify a […]