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Texas Business Formation Questions & Answers
1 Answer | Asked in Business Formation for Texas on
Q: I do not want to pay high business taxes in New Jersey - can I open a new LLC in Texas without a physical address there?

I would like to operate worldwide with partners and employees remote and distributed worldwide. We will be a staffing agency and IT advisory consulting firm. I want to headquarter it in Texas but have no physical office.

Allison Higgins
Allison Higgins
answered on Dec 22, 2020

Yes, you can use a registered agent instead of a physical office address. You'll have to pay a small fee, usually around $50/year for the registered agent. Many people do this when they run a business from their home.

1 Answer | Asked in Copyright, Business Formation and Business Law for Texas on
Q: I have celebrities on my clothing brand. could I get sued?

I want to start a clothing business and I have celebrities on some of my clothing. could I get sued? if so how could I get around that? If I still decide to proceed with this particular design should I file for an LLC?

Allison Higgins
Allison Higgins
answered on Nov 9, 2020

Hi there. Unfortuntely there is not a clear yes or no answer to your question without more information. It depends on how the celebrities are portrayed and if your products fall under fair use or satire exceptions, among other things. You should speak with a Texas trademark and copyright lawyer to... View More

2 Answers | Asked in Consumer Law, Business Formation and Business Law for Texas on
Q: Do I need to incorporate as a nonprofit to market my business as one when I won't be accepting donations or grants?

Hello!

I want to convert my marketing business into a nonprofit organization.

My mission is to utilize economic development to improve the conditions of local communities, creating successful small businesses that give back to the community.

That mission is obviously... View More

Kacie Marie Czapla
Kacie Marie Czapla
answered on Nov 2, 2020

If you want to hold yourself out as a non-profit, then yes, you must be a non-profit. To become a non-profit, you must (1) create an entity with the Secretary of state and (2) file a 501(c)(3) application with the IRS. You cannot do this without an attorney and/or a CPA. Try to find an attorney who... View More

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1 Answer | Asked in Business Formation for Texas on
Q: Do I need a LLC or PLLC for a licensed for HVAC company in Teaxs?
Allison Higgins
Allison Higgins
answered on Oct 25, 2020

Hello. Thanks for reaching out with this question. According to the Texas SOS website, A/C contractors can only create LLCs or for-profit corporations. It is advisable that you contact a licensed attorney and/or accountant to help determine the best business structure for your goals.... View More

1 Answer | Asked in Banking, Business Formation and Business Law for Texas on
Q: Can payments made out to my actual name be deposited in the LLC bank account as a pass-through then pay myself a salary?

I'm an insurance agent hired as a 1099. I formed the LLC w/ S corp tax designation, but my agency can't pay my LLC unless it is licensed with the state. That requires I carry a 500k E&O policy, which costs approx. 1k/yr. Would I be able to deposit checks made out to my name into... View More

Kacie Marie Czapla
Kacie Marie Czapla
answered on Oct 6, 2020

I don't see any reason why you could not do this provided you 1) ensure your salary is reasonable based upon fair market comps 2) issue yourself a W-2 at year end 3) pay estimated payroll tax payments monthly (or bi-monthly depending on how often you are paid...ask an accountant) 4) file 940s... View More

1 Answer | Asked in Business Formation and Business Law for Texas on
Q: Can I open a gym out of my garage for profit?

My roommate wants to start a gym out of our garage

Tim Akpinar
Tim Akpinar
answered on Aug 11, 2020

A Texas attorney could advise best, but your question remains open for two weeks. As a GENERAL matter, it could depend zoning laws, municipal ordinances/codes, and other possible regulations or community guidelines. It sounds like the property is yours, but if you rent, the terms of a lease could... View More

1 Answer | Asked in Business Formation, Business Law, Contracts and International Law for Texas on
Q: Can I hire international contractors for video content creation for my online only business?

I want to start an online yoga studio that provides live classes and video library of the recorded live classes. For this, I plan on working with yoga teachers from around the world.

My question is, can I form my business as an LLC and hire them as independent contractors to provide me... View More

Jane Kim
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answered on Aug 7, 2020

Yes.

A business can tap into sub-contractors' labor and may solely rely on sub-contractors. It signifies that you do not have much control over their work. A good overview of what factors would be considered an independent contractor v. employee can be found here-...
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1 Answer | Asked in Business Formation, Business Law and Securities Law for Texas on
Q: How do I obtain a copy of my public record in Walker County Texas; Doc no. 00025169 vol no 01248 page no. 00354?

I need to refile this in the Texas Secretary of State.... I need Instructions how to transfer this into the UCC Financial Filing Dept.

Tri Minh Nguyen
Tri Minh Nguyen
answered on Apr 29, 2020

The recording information looks like it's a real property recording. You can pull the information here:

https://walkertx.search.kofile.com/48471/Home/Index/1

Good luck.

1 Answer | Asked in Business Formation and Business Law for Texas on
Q: How do I file a SS4- Application for a EIN by Fax/mail?
Tri Minh Nguyen
Tri Minh Nguyen
answered on Apr 29, 2020

Hello. You can now file the SS-4 application online. Have you tried this yet? This process allows you to receive an EIN immediately. https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

Here's the fax info:

Internal Revenue Service

Attn:...
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1 Answer | Asked in Business Formation for Texas on
Q: I consulted (without a K) for a tech company that's struggling. They owed me money so I quit. Can I compete w/ them?

I found a tech solution to their problems. The CEO was impressed but the Board rejected my concept. CEO later told me they didn't 'get it.' He was very angry. After I quit, the Board fired all but two guys: an engineer and the CEO The company is failing but still exists on paper.... View More

Tri Minh Nguyen
Tri Minh Nguyen
answered on Apr 14, 2020

Hello. Generally, non-competes should be in writing because they should express a time limit for the non-compete and what the scope of the non-compete should be. If you signed a document that includes a non-compete clause or a non-compete language, then you'd want to analyze that language... View More

1 Answer | Asked in Business Formation for Texas on
Q: Can a managing member of a LLC be removed with out their authorization?

This is filed with the Secretary of State in Texas

Tri Minh Nguyen
Tri Minh Nguyen
answered on Apr 13, 2020

Hello. Good question. When an LLC is formed, there should have been an LLC company agreement or operating agreement. This agreement usually sets out when and/or how a managing member (if a member-managed LLC) or manager (if a manager-managed LLC) can be removed. Have you checked the agreement?... View More

2 Answers | Asked in Copyright and Business Formation for Texas on
Q: Is my companies name too similar to a larger, more well known company and could there possibly be issues down the road?

I am creating a Men’s athletic wear clothing store called Freshletics. However, after doing some research, I came across a very large athletic wear company that specializes in woman’s athletic wear but also does men now. Is this name to similar to use and could there be legal trouble down the... View More

Barbara Berschler
Barbara Berschler
answered on Apr 5, 2020

It is great that you want to examine this trademark issue before you launch your business. Coming to the appropriate answer will save you a lot of money and grief. You should work with a local trademark attorney to help you investigate whether your name/mark would infringe the mark of the other... View More

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1 Answer | Asked in Products Liability, Business Formation and Small Claims for Texas on
Q: Quick question, I have not received my refund for almost four months from Adidas. I've called them more than 3-4 times!

But no luck! I wanna sue them, cause this has been going on for a long time and every time I call them, they say they are sorry and they are going to refund it and all! But nothing... Even local shops just would refund in a day or two, but every time I call them, they say it is in the process and... View More

Tim Akpinar
Tim Akpinar
answered on Mar 23, 2020

A Texas attorney who deals with consumer rights issues could advise in the most meaningful manner here. But your question remains open for four weeks. Keep in mind that in pursuing a lawsuit, your time lost from work/school in going to court, handling paperwork, etc. could run you more than the... View More

1 Answer | Asked in Criminal Law and Business Formation for Texas on
Q: if a non profit organized as a religious organization who's religious believes are not in line with parts of a state cod

or federal code, can you exempt those codes in the by laws or purpose of incorporation?

Kiele Linroth Pace
Kiele Linroth Pace
answered on Feb 22, 2020

No. Firmly held religious beliefs did not spare Rastafarians from prosecution for possession of marijuana, nor did they spare fundamentalist Mormon Warren Jeffs from being sentenced to life in prison for having sex with the little girls that he supposedly "married" in his freak church.

1 Answer | Asked in Business Formation for Texas on
Q: Could I use Golden Ticket in my business name if its a Transportation Company?
Robyn T. Williams
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Robyn T. Williams pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on Feb 15, 2020

You may be able to use the name Golden Ticket for a transportation company or "golden ticket" in your business name. The complete answer to your question depends on use of that name, or names that would be confusingly similar, in the same trade channels.

Currently, there are 39...
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Q: Can I sue American Airlines for losing my luggage resulting in irreplaceable loss of property, psychological harm?

AA l ost my luggage during a international move (relocating for a job) and as a result, I have lost irreplaceable documents such as diplomas and other property. I am looking to apply for graduate school so this may have an impact on my application eligibility. Furthermore, I will never be able to... View More

George W. Wolff
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George W. Wolff
answered on Feb 13, 2020

Probably not

1 Answer | Asked in Criminal Law, Tax Law, Business Formation and Business Law for Texas on
Q: How does a non-profit change leadership and what happens to the EIN when a new owner comes and the old leaves?

I am the founder of a Texas non-profit corporation (Corporated in the State of Texas) and also Chairman/CEO. I applied for the EIN being used under my own info (Name, SSN) on the IRS site. I’m stepping down completely from operations due to conflict of interest with the board and need help in how... View More

D. Mathew Blackburn
D. Mathew Blackburn
answered on Jan 22, 2020

Non-profits don't have owners. They a board of directors and officers. When you applied for the EIN you listed yourself as a responsible party that can be changed by filing a form 8822-B or by filing Form 990.

You can't establish a non-profit under your SSN so you may have an...
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1 Answer | Asked in Business Formation, Business Law and Tax Law for Texas on
Q: What is the best option for a non-resident to form a legal entity with a resident partner? A partnership LLC or C-Corp?

Asking in terms of taxation as well as any other legal issues.

D. Mathew Blackburn
D. Mathew Blackburn
answered on Oct 3, 2019

Best is a relative term. Because it's TX state tax is irrelevant. We're not concerned with the state claiming residency against the non-resident owner's will.

The next step is assessing liability and compliance. Generally that's an LLC. But it's heavily dependent...
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2 Answers | Asked in Business Formation, Contracts, Land Use & Zoning and Real Estate Law for Texas on
Q: Can an individual place restrictions on property they are selling if no restrictions were on it before?

My wife and I purchased a 10 acre tract in Polk County on FM 3126 outside Livingston city limits, not in a neighborhood, no HOA or zoning. The land sale contract states "The property shall be used exclusively for agricultural or single-family residential purposes." If we decide to build a... View More

Tammy L. Wincott
Tammy L. Wincott
answered on Aug 13, 2019

I suggest you see if the seller will amend; otherwise, you signed a contract with them and they can hold you in breach of that contract.

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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
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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.

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