Every business owner must deal with legal issues at some point in the company’s life. Maybe you are ready to charter your company or have an opportunity to merge with another organization. Perhaps you are considering hiring new employees or retiring. Navigating these types of situations requires in-depth knowledge of local and federal business laws.
A Texas business lawyer can handle all the legal matters for your company so you can focus on running your operation. Reach out to our firm to learn more about what our skilled attorneys can do for you and your company.
If you are a future business owner, you must decide what type of legal structure to use for your company. Some of the most common types of legal entities include, sole proprietorships, partnerships, limited liability companies (LLCs), C corporations, S corporations, and professional corporations.
The sole proprietorship is the simplest type of business entity. Owners work alone, and the tax structure does not distinguish between the person and the business. You are not required to register your business with the state when you form a sole proprietorship. However, you will need to register a trade name if it differs from your given name.
Partnerships are made up of two or more owners. You and your partners do not have to charter the company with the Secretary of State. Although, you should execute a partnership agreement to detail each party’s rights and responsibilities.
To start a limited liability company, you file a Certificate of Formation with the state and pay a filing fee. If you are running an LLC, you can benefit from executing an operating agreement that dictates how the company will be run.
Limited liability companies feature a pass-through tax structure. The Texas Secretary of State requires LLCs to submit annual reports.
C corporations file Articles of Incorporation with the state along with a filing fee. These business entities are run by shareholders, an elected Board of Directors, and appointed management.
S corporations are an Internal Revenue Service (IRS) designation that allows owners to choose a tax structure. The number of shareholders is limited, as is the type of business conducted. Both C and S corporations are governed by shareholder agreements and bylaws.
Professional corporations are generally owned by licensed professionals, such as accountants, physicians, and attorneys. Like LLCs, corporations are required to submit annual reports.
The IRS requires business entities to obtain an Employer Identification Number (EIN) if they intend to pay employees. Even sole proprietors may need an EIN to open a bank account. Additionally, you will need the proper zoning permits and occupational licenses no matter what legal entity you choose. A local business attorney can help you determine the best legal structure for your company.
As a business owner, you should anticipate potential problems with your employees. One of the best ways to avoid future conflict is by executing employment contracts with confidentiality, non-disclosure agreements, and non-compete clauses.
Additionally, it is useful to have a handbook that details expected workplace behavior and processes for reporting and resolving issues of discrimination or harassment. If an employment dispute arises, our experienced lawyers can help you protect your business.
Mergers and acquisitions (M&A) is an important area of corporate law. You might decide to negotiate a merger or acquisition to grow your company, decrease competition in your industry, or allow key management to sell out and retire. An attorney skilled in corporate law can advise you during negotiations for these significant business deals.
Contracts are essential in most industries. These agreements protect all parties involved in a business deal. Our legal team can represent your best interests when drafting and negotiating contracts. A seasoned business attorney can also provide legal counsel in a breach of contract case.
Copyrights, trademarks, and patents protect creative work such as art, music, books, and plays. They also safeguard inventions, logos, designs, and phrases associated with a product. A business law attorney in Texas can protect your company’s intellectual property through registration, licensing, and litigation.
When you operate a business in Texas, you must comply with state corporate law and federal statutes. A legal professional from Sparks Law can help you understand these laws and protect your company’s future. Contact our office today to set up a consultation with a Texas business lawyer.