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Texas Business Law Questions & Answers
2 Answers | Asked in Business Formation, Business Law and Real Estate Law for Texas on
Q: Options after unauthorized real estate sale by LLC partner.

I was a member of an LLC based in Texas that held real estate in Missouri. My partner, without prior communication or my knowledge, sold the real estate. Given my position in the LLC, what are my options?

John Michael Frick
John Michael Frick
answered on Jul 10, 2025

It depends on whether the company agreement of your limited liability company (LLC) requires your approval to sell the real estate.

An LLC can be either member-managed or manager-managed. Whomever manages the LLC--who is called the "manager"--is the person, or people if more...
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2 Answers | Asked in Business Law, Contracts and Civil Litigation for Texas on
Q: Being sued after independent contractor's accident with my truck, no injuries or damages.

I am being sued for monetary compensation because an independent contractor I hired had an accident with my truck. There were no injuries or damages due to the accident, and no insurance was involved. What should I expect in this situation, and what steps should I take?

John Michael Frick
John Michael Frick
answered on Jul 9, 2025

Your question is unclear. Why would anyone be suing you if there were no injuries or damages? Is your own independent contractor suing you, or is a third-party suing you because your own independent contractor was operating your truck?

In any event, you should immediately tender the...
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3 Answers | Asked in Civil Litigation, Workers' Compensation, Business Law and Personal Injury for Texas on
Q: How can a sole proprietor in Texas protect assets from a personal injury civil suit without worker's comp insurance?

I am a sole proprietor in Texas and am facing a civil suit for personal injuries claimed by an employee. I did not have workman's compensation insurance at the time of the injury. I have not sought any legal advice yet, nor do I have any asset protection strategies in place. Is there any way... View More

John Michael Frick
John Michael Frick
answered on Jul 1, 2025

It is likely too late now to try to protect your assets from this suit. Any transfer of your assets into a family trust, family limited partnership, family LLC, or to another person can very likely be set aside by your injured employee as a fraudulent transfer now. While a new workers'... View More

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2 Answers | Asked in Trademark, Business Law and Intellectual Property for Texas on
Q: How to sell a registered trademark in use?

I want to sell a trademark that is registered with the United States Patent and Trademark Office (USPTO). I'm looking for potential buyers, and the trademark is currently in use for a product. What steps should I take to sell it effectively?

John Michael Frick
John Michael Frick
answered on Jun 27, 2025

You should hire an attorney who practices in the area of intellectual property law to discuss with you the typical contents of an intellectual property transfer agreement so that you know what types of terms and conditions are common in this type of sale. Market your trademark to potential buyers... View More

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Q: Can I patent a unique permanent jewelry linking technique?

I have created a form of permanent jewelry that involves hand wiring the last link, using handmade links for each piece. This method is unique in creating permanent jewelry from linked jewelry, and as far as I know, it hasn't been done before. I want to know if this is something that can be... View More

Peter D. Mlynek
Peter D. Mlynek
answered on Jun 16, 2025

Yes, this is something that could be patented. Yes, patenting is the most suitable form of intellectual property protection for this type of work.

You should find a patent lawyer who will be able to help you. The patent lawyer does not have to live close to you -- you can hire someone in...
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2 Answers | Asked in Business Law, Civil Litigation and Securities Law for Texas on
Q: Can I file a fiduciary negligence claim against Landa Holdings, Inc. for account access issues and no distributions in Texas?

I am an investor in Landa Holdings, Inc., which manages several LLCs. For over six months, I have been unable to access my online accounts to manage my investments, and the company has not provided any timeline for resolving this issue. Additionally, I haven't received any distributions due to... View More

Richard  Frankowski
Richard Frankowski
answered on Jun 15, 2025

First check your investment contract. If it contains an arbitration clause, you will probably have to file your claim in arbitration. If it does not, you should be able to file in court. You may want to make a formal demand for books and records before filing suit. Good luck.

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3 Answers | Asked in Business Formation, Business Law and Real Estate Law for Texas on
Q: Can a tenant pierce the corporate veil of my Texas LLC?

I have a single-member LLC in Texas that owns a rental property. The LLC has a separate bank account where rent is collected and expenses are paid. However, the mortgage and property insurance are in my name, with the LLC listed as an additional insured on the insurance. I'm the managing... View More

John Michael Frick
John Michael Frick
answered on May 28, 2025

You have already taken the most effective step by holding the rental property in an LLC instead of in your individual name. It is hard to pierce the company veil in Texas. Merely holding the mortgage and insurance in your individual name is not dispositive. A plaintiff would have to prove that... View More

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3 Answers | Asked in Divorce, Family Law, Real Estate Law, Business Formation and Business Law for Texas on
Q: Is inherited asset purchased property considered separate, or must it be split in divorce?

I am in the process of getting a divorce in Texas. After getting married in the Netherlands, I inherited a large sum of money from my mother in June 2019, which I used to purchase a house and a business. Both properties are jointly titled in my wife's and my name, which I did because I wanted... View More

John Herbig
John Herbig pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on May 28, 2025

Your inheritance would be considered separate property, and had you bought a house with that money and not put it in your spouses name, it would more than likely have remained your separate property, but once you put the home and business in both of your names, the Court will more than likely... View More

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3 Answers | Asked in Divorce, Family Law, Real Estate Law, Business Formation and Business Law for Texas on
Q: Is inherited asset purchased property considered separate, or must it be split in divorce?

I am in the process of getting a divorce in Texas. After getting married in the Netherlands, I inherited a large sum of money from my mother in June 2019, which I used to purchase a house and a business. Both properties are jointly titled in my wife's and my name, which I did because I wanted... View More

Steven Buitron
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answered on May 25, 2025

The money you inherited was originally your separate property. But when you used it to buy a house and a business and then put both in your and your wife’s names, the law assumes you meant to give her half.

Because of that, the court will probably treat both the house and the business as...
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2 Answers | Asked in Landlord - Tenant, Business Law and Real Estate Law for Texas on
Q: Who repairs water-damaged breaker box from landlord's leaking roof?

As a tenant operating a business in a leased commercial space, water damage occurred to our electrical breaker box due to a leaking roof, which is the landlord’s responsibility. We notified the landlord, who referred us to the maintenance person. Our lease states that we are responsible for... View More

John Michael Frick
John Michael Frick
answered on May 9, 2025

The answer to your question depends on the exact language of your lease agreement and possibly local ordinances where the premises are located. It is very important to read and understand the lease as a whole, and not to focus on single paragraphs or sections of the leases.

It is extremely...
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2 Answers | Asked in Business Law and Contracts for Texas on
Q: Am I liable for previous debts if added to a sole proprietorship's assumed name certificate after being an employee?

I am currently named on an assumed name certificate for a sole proprietorship. However, prior to this, I was merely an employee of the business and did not sign any agreements or contracts regarding the company's debts. Am I liable for any previous debts of the company?

John Michael Frick
John Michael Frick
answered on Apr 29, 2025

A sole proprietorship (i.e. a d/b/a) is not a separate and distinct legal entity from the natural person who is the owner of the assumed name. It is a natural person (i.e. the sole proprietor) conducting business under an assumed name. So there is no "company" or "company... View More

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2 Answers | Asked in Landlord - Tenant, Civil Litigation, Business Law and Real Estate Law for Texas on
Q: Seeking legal guidance on property management negligence causing $20,000 loss.

I own a rental property in Texas, and my property management company was negligent in screening tenants and maintaining the property. The tenant who signed the lease allowed multiple families to live in the house. Despite repeated complaints and monthly HOA violations, the management company failed... View More

John Michael Frick
John Michael Frick
answered on Apr 9, 2025

The success of your case will turn heavily on the language of your agreement with your property management company and the particular facts and circumstances of your case. You will need to prove how the management company knew or should have know that the tenant who signed the lease was likely to... View More

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2 Answers | Asked in Divorce, Business Law, Contracts and Family Law for Texas on
Q: Credit union refuses divorce decree, loan in ex-husband's name for awarded vehicle. Can I return it?

I was awarded a vehicle in my divorce, but the credit union refuses to acknowledge the divorce decree, stating the loan and title remain in my ex-husband’s name. They will not allow refinancing in my name, affecting my ability to register the vehicle. I’ve considered returning the vehicle to... View More

John Michael Frick
John Michael Frick
answered on Apr 3, 2025

If the loan is solely in your ex-husband's name and the divorce court did not order to pay the loan and to hold your husband harmless from any failure to pay the loan, then your ex-husband remains liable on the loan. In addition, the vehicle remains collateral for the repayment of the loan.... View More

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2 Answers | Asked in Contracts and Business Law for Texas on
Q: How should I handle contract termination due to unexpected cost increases and client requests?

I had a contract to build 15 straight stairs using white oak materials. The client originally agreed to this, but the cost of white oak increased unexpectedly right before purchasing the materials. Despite this, I decided to honor the original estimate and start the project, even though it was... View More

John Michael Frick
John Michael Frick
answered on Apr 2, 2025

You cannot terminate the contract due to the increased cost of materials unless the contract language expressly gives you that right.

You also cannot terminate the original contract due to requests from your customer for additional work, although you are not required to agree to the...
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Q: Can non-U.S. residents wholesale real estate in Texas and receive assignment fees abroad?

I live abroad and I'm interested in wholesaling real estate in Texas. Is it possible for non-U.S. residents to engage in this business? What kind of paperwork or legal requirements should I be aware of? Additionally, there may be situations where I enter into joint ventures (JVs) with other... View More

John Cucci Jr.
John Cucci Jr.
answered on Apr 1, 2025

Most non-US citizens can buy and sell land and otherwise speculate on the same. However, if you are a Chinese National, or are from a "Terrorist State" country, that type of business is NOT available for you in Texas.

The key is to manage your properties and taxes correctly. Get...
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2 Answers | Asked in Employment Law, Mergers & Acquisitions, Contracts and Business Law for Texas on
Q: Are the new company owners obligated to uphold my truck allowance agreement after a merger?

I work for a company that recently merged with another company. Three years ago, I signed an employee agreement that provides a weekly truck allowance, maintenance costs, and a fuel card for using my personal vehicle for work. The company taking over is attempting to remove these benefits without... View More

John Michael Frick
John Michael Frick
answered on Mar 31, 2025

The parties almost always can modify a previous agreement if they both mutually agree to the modification. If the parties do not agree, it depends upon what the original agreement provides whether one party can unilaterally modify the agreement. If there is nothing that gives the company the... View More

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2 Answers | Asked in Business Formation, Land Use & Zoning and Business Law for Texas on
Q: Do I need a permit to operate a pet food vending machine in Dallas, TX?

I am planning to operate a vending machine selling pet food in both indoor and outdoor locations in Dallas, Texas. I am unaware of any local business regulations or zoning laws related to vending machines. Do I need a permit for this?

John Michael Frick
John Michael Frick
answered on Mar 17, 2025

Operating a vending machine business requires compliance with various laws. In general, the operator of a vending machine requires a license from the State of Texas to operate such a business. Cities and counties regulate where commercial business are allowed to operate through zoning laws and... View More

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2 Answers | Asked in Contracts, Probate and Business Law for Texas on
Q: Probate advance company not fulfilling payment obligations.

I was approved for a loan by a probate advance company, but they've only sent one payment and haven't fulfilled the rest of the payments as promised. They've stopped responding to my emails and calls. I have the loan agreement and written communication. What steps can I take to resolve this issue?

John Michael Frick
John Michael Frick
answered on Mar 15, 2025

You can sue the lender for breach of contract. Check your loan agreement to see if you agreed to mediation, arbitration, or a particular forum for the resolution of your dispute. These type of provisions are common in such loan agreements and are almost always enforceable.

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2 Answers | Asked in Business Law, Employment Law, International Law and Internet Law for Texas on
Q: Can I sell $500,000 in cell phones for cash to an undocumented buyer?

I run a cell phone business and recently had a buyer ask to purchase $500,000 worth of cell phones in cash. The buyer is undocumented and wants the phones shipped to California. Am I allowed to proceed with this transaction, and are there any legal restrictions or reporting requirements I should be... View More

John Michael Frick
John Michael Frick
answered on Mar 6, 2025

I have a feeling that somebody wants to replicate what Mossad did to Hamas, but I don't have the answer to your legal question. This is a sufficiently odd transaction, there may not be an answer as it may implicate the laws of other nations and any advice might require knowledge of what and... View More

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1 Answer | Asked in Criminal Law, Business Law and Contracts for Texas on
Q: Have I committed a crime by using a business credit card for unauthorized purchases?

I've been using a business credit card issued by a pool technician company for pool-related expenses and gas for my truck. I ended up purchasing retail items and food from grocery stores and restaurants, which were not authorized. The employer verbally mentioned the card's intended usage... View More

John Michael Frick
John Michael Frick
answered on Mar 3, 2025

You should immediately repay any unauthorized charges in full to avoid being charged with a crime. Legally, the question is did you exceed the authority given to you by the company to use the company credit card. "Purchasing retail items and food from grocery stores and restaurants"... View More

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