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Texas Business Formation Questions & Answers

1 Answer | Asked in Immigration Law, Business Formation and Business Law for Texas on

Q: Legal ways I can get a green card while in year one or two at the University no matter the cost

Because I want to start up legal businesses while in school

Deron Edward Smallcomb answered on Mar 15, 2019

There are definitely options if you are willing to invest a significant amount of money in the USA. Feel free to contact us or another experienced immigration lawyer for assistance.

1 Answer | Asked in Business Formation, Business Law and Contracts for Texas on

Q: A friend has 2 companies under her LLC. I want to start a third business under her LLC. What would it take?

Is it a good idea to add a third? Does it matter if I my company is for companionship for the elderly and the friend companies are more toward selling product?

Abraham C. Bloomenstiel answered on Jan 22, 2019

Thanks for your question. Unfortunately, this is a difficult question to answer without more information. It would help me to know the type of LLC your friend has and what ownership or relationship your friend's LLC or other two companies under it will have with the new business that you want to... Read more »

1 Answer | Asked in Business Formation for Texas on

Q: Can I conduct business in a different state than the one I am incorporated in?

Matthew Valley answered on Sep 15, 2018

Generally speaking, yes. However, the state you want to do business might require you to register your business with them, to obtain a license for your type of business, to register for sales tax, etc. You should consult an attorney in the jurisdiction you are wanting to do business in to see what... Read more »

1 Answer | Asked in Business Formation for Texas on

Q: I have a DBA w/an EIN. I want to start another business. Do I need an LLC to house them? Or can they stand alone?

I am looking to do the smart thing for structure and taxes. I have an existing DBA with EIN. I want to start a second business. Do I need to create a parent company LLC or something for them to be subsidiaries of, or can they stand alone? Thanks much!

Stefan Dunkelgrun answered on Aug 7, 2018

You could create a parent company entity, or you could create standalone entities. Both would be viable strategies, depending on your concerns and the risks related to the businesses.

The appropriate type of entity is very much dependent upon the situation. An LLC may not be the...
Read more »

1 Answer | Asked in Business Formation for Texas on

Q: I live in TX, but am buying a property in KY with a newly formed KY LLC. Do I need to qualify the LLC in Texas?

Further, I am applying for an EIN with the IRS. The website is asking where my physical address is - would that be the KY initial registered office, my home address in Texas (where I work), or the property address that I'm in contract to purchase?

Benton R Patterson III answered on Jun 29, 2018

There are specific requirements governing when a business entity must register to conduct business in Texas. An attorney would need to know all the facts about the business to answer this question. The address of the business is not the registered agent's office. Typically, the business address... Read more »

1 Answer | Asked in Copyright, Trademark and Business Formation for Texas on

Q: How should I legally start structuring a record label business, register trademark and copyright?

Id like to start it with two other people, get an estimate for how much it would cost to trademark, copyright and would you be able to give me some steps to start with the structuring?

John Espinosa answered on Jun 1, 2018

This is a very complex and specific question that cannot be fully addressed on here. As a starting point, this government resource explains the basics of copyright and trademark in the music industry:

https://www.uspto.gov/learning-and-resources/ip-policy/musicians-and-artists-profile...
Read more »

1 Answer | Asked in Contracts, Employment Law, Business Formation and Education Law for Texas on

Q: Starting a after school program at a school district. Wanting to know how to get a contract developed between partners.

Wanted to know what type of business would be better: non-profit or a LLC. Should I have a lawyer look over contract between my company and the school district. Do I need another company to handle taxes and payroll.

Benton R Patterson III answered on May 14, 2018

An attorney would need to know more about the program to advise on what type of business structure to use. There are many factors to consider when forming a business. It would be best to have a lawyer review a contract with a school district.

1 Answer | Asked in Business Formation for Texas on

Q: Will others be barred from using my business's name if I file a certificate of formation?

Benton R Patterson III answered on May 8, 2018

If you register a business name in Texas, the Texas secretary of state will not let someone else register the same name in Texas. However, someone could register that name in another state or use it as a trade name. Registering a business name does not provide trademark rights. If you want to... Read more »

1 Answer | Asked in Tax Law and Business Formation for Texas on

Q: Hi, I am planning to convert my Sole P into an LLC here in Texas. And I also have about 21 sales tax permits. I plan to

Hi, I am planning to convert my Sole P into an LLC here in Texas. And I also have about 21 sales tax permits. I plan to not file my LLC in those other states. But what about sales tax expense? The sales tax permit would be under a Sole P so how do I take that sales tax expense under account if the... Read more »

Benton R Patterson III answered on Apr 23, 2018

Most states require companies that sell products in the state to register to conduct business in the state. An LLC that is not properly registered to conduct business and intermingles transactions with a sole proprietor has a decent chance of losing its ability to shield the owner or owners from... Read more »

1 Answer | Asked in Real Estate Law, Business Law and Business Formation for Texas on

Q: Do we need to start a new LLC for a building and land in TX and do we need both in the new LLC's name?

Our accountant is advising us to move the newly constructed office/warehouse building that our company built into another LLC for protection. The one issue that she had was that the building was built on one of the partners properties and it is still legally in his name but the building was build... Read more »

Benton R Patterson III answered on Apr 20, 2018

Texas law does not require you to put the building in an LLC, although doing so may provide liability protection. An attorney would need to understand the entire situation and review the title documents to advise on how to structure the LLC and what assets it should hold.

1 Answer | Asked in Banking, Business Formation and Business Law for Texas on

Q: My friend and I want to open a join business account. We will be opening it with a DBA but I'm concerned about banking

My credit union says that no institution has the option to restrict withdrawals from a joint account unless both parties sign for the withdrawals. However, a contract I've created gives such an option. How valid is a notarized contract in this case if institutions do not offer mandatory signatures... Read more »

Benton R Patterson III answered on Apr 20, 2018

Generally, a contract is only binding on the parties who sign the contract. If the bank is not a party to the contract, it does not have to follow it. You and your business partner can contractually agree to limit the money each of you can withdraw from the account. However, you would not be... Read more »

1 Answer | Asked in Copyright, Business Law, Trademark and Business Formation for Texas on

Q: Posters with Brand name logos on it. Can I use them in a retail store that I'm opening?

A store is going out of business, I'm wanting to buy the brand name products and posters that advertise them.

Benton R Patterson III answered on Feb 20, 2018

Most likely, you can sell the products. Generally, you are free to resell what you rightfully purchased. There is a possibility that one of the brands may have brand use guidelines that restrict how you can market their products. An attorney would need to know more to give a certain answer to... Read more »

1 Answer | Asked in Business Formation for Texas on

Q: Should a contractor (doing office work) form an LLC?

I currently work as a contractor for a small company and I'm the only employee. My job includes placing orders, sourcing and book keeping. Should I set up an LLC and let my current employer contract through my company or continue work as a contractor?

Benton R Patterson III answered on Jan 29, 2018

If you don't do anything to create liability, probably not. Depending on how much money you make, there may be tax advantages to having your income pass through a business entity that is taxed as an S corporation.

1 Answer | Asked in Business Formation for Texas on

Q: Do I need to hire an attorney to create an LLC?

Benton R Patterson III answered on Jan 29, 2018

The state of Texas does not require a person to hire an attorney to organize an LLC. But, there are so many mistakes that can be made, it is unlikely that an LLC, or any business entity, formed and managed without legal counsel will be effective in the long run or in the face of litigation.

1 Answer | Asked in Business Formation and Tax Law for Texas on

Q: I created an LLC. I submitted a 2553 to become an s-corp. What do I do for franchise taxes?

Jack Ternan answered on Nov 17, 2017

If you created the LLC in Texas, the Comptroller's office normally sends a mailer to the registered agent's address with information on how to file franchise tax reports and pay any amounts owed.

1 Answer | Asked in Business Formation, Business Law and Trademark for Texas on

Q: What does it mean when a company name is trademarked?

I am opening up a Offroad company in Texas called Kaos Offroad period but I found on your website that name is trademarked. What exactly does that mean? Does this mean I cannot open my shop under that name?

Benton R Patterson III answered on Sep 7, 2017

It depends on whether consumers are likely to be confused about the source of the trademark owner's goods/services. If both companies sell off-road equipment, you are likely infringing on the other company's trademark, even if you successfully register the business name in Texas.

1 Answer | Asked in Business Formation, Trademark and Business Law for Texas on

Q: Can a trademarked name hold title as a grantor of personal property being deeded to grantee an Llc?

Benton R Patterson III answered on Sep 6, 2017

A trademark is not a legal entity and cannot hold title to other property.

1 Answer | Asked in Bankruptcy, Business Formation and Foreclosure for Texas on

Q: Should my mortgage company foreclose my house if I filed for bankruptcy and informed them about it with my case #?

In Texas, if I filed for bankruptcy, informed my mortgage company about it with my case # and got jailed for a different reason before the bankruptcy got concluded, should it be in effect or should my mortgage company foreclose my house? Do I have any legal option if the mortgage company foreclosed... Read more »

Nels Hansen answered on Aug 4, 2017

If this was your first case the mortgage company should not have foreclosed while the automatic stay was in place. The automatic stay is in force from the time the case is filed until it is lifted or your case is dismissed. Getting locked up does not terminate the stay. Having your case... Read more »

1 Answer | Asked in Business Formation for Texas on

Q: What's the fastest way for me to incorporate my new business? How long will it take?

Glenn B. Manishin answered on Jul 20, 2017

There are many online incorporation firms that will handle the paperwork for C Corp. or LLC formation, typically in about 2-3 business days or quicker with expedited service. You do not need to be a Texas corporation to do business in the state, just registration as a "foreign" company with an... Read more »

1 Answer | Asked in Business Formation for Texas on

Q: More than a year ago. I hired a business consultant.

The contract finish and he would not send me my business plan. He would not answer my calls, emails,nor messages. What can I do?

I my business cannot take a next step because of him.

Glenn B. Manishin answered on Jan 17, 2017

The refusal to deliver the contracted business plan is a breach of contract. You can sue the consultant and claim damages of the difference between what you paid him and what it costs to have another consultant prepare the business plan, plus restitution of what you paid under the contract and, if... Read more »

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