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Texas Business Formation Questions & Answers
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
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
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
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
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... View More

Nels Hansen
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... View 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
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... View 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
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... View More

1 Answer | Asked in Consumer Law, Business Formation and Legal Malpractice for Texas on
Q: Hi Can I use the word "dental clinic" in my teeth whitening business name? I'm not using dentist or dentistry..Thanks

I'd like to use the name dental in my teeth whitening business name.

The word dental means: Of, relating to, or for the teeth: - Is this illegal? Thanks

Peter N. Munsing
Peter N. Munsing
answered on Sep 9, 2016

I think the Texas Dental Associatioon would view it as holding yourself out as a dentist. Because "clinic" is defined as a place that renders outpatient treatment, you could have problems with state agencies. Further, if you aren't a dentist I hope you have a good liability insurance... View More

2 Answers | Asked in Business Formation, Business Law and Contracts for Texas on
Q: I am trying to create a hold harmless agreement with subcontractors, but I'm not currently an LLC.

I am not currently and LLC, but I am trying to create a hold harmless agreement with some subcontractors. Should I have them sign one now with me as an individual and then have them sign one later to my LLC?

Peter N. Munsing
Peter N. Munsing
answered on Aug 29, 2016

Whoever the contract is with. But you really want to pay for a consultation to review these questions with a business attorney

who focuses their practice on business formation. Your accountant can also have insights.Doing it all yourself off of the web, with all due respect to the vast...
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1 Answer | Asked in Business Formation for Texas on
Q: I'm wanting to start a non profit to help spay/neuter/vaccinate dogs locally. Can Justia help with the paperwork?

I am currently the only person willing to solicit donations for our local pound to get the animals in good health and get them adopted out. City does not provide any assistance other than an Animal Control officer and a place to put the dogs. I solicit for food, blankets and monetary donations for... View More

Anton Pal Montano
Anton Pal Montano
answered on Aug 9, 2016

Congrats on the work you are trying to do. Before setting up a 501(c)(3), please consider that running a nonprofit will involve a lot of tax accounting work each year as you make your annual tax reports to the IRS. An attorney can certainly help you with the formation of the nonprofit corporation... View More

1 Answer | Asked in Business Formation for Texas on
Q: Can I buy a plumbing franchise with ok credit?
Anton Pal Montano
Anton Pal Montano
answered on Jan 22, 2016

Buying a franchise can be a good way to enter into a business. Unfortunately, it is difficult to answer your question without more information. Much of the relationship between franchisor and franchisee is contractual. Thus, each franchisor may have specific requirements regarding credit for... View More

1 Answer | Asked in Business Formation for Texas on
Q: Choosing right type of contract

hi, I am planning of developing a software with help from my friend who has a company. We want to develop this product which is my idea through my friend's company developers. After product is completed I will market and sell it and we will share the profits. What kind of contract/agreement... View More

Adam Studnicki
Adam Studnicki
answered on Aug 29, 2015

The name of the contract isn't as important as the contents, and the contents are very important to protect you. Talk to a local business lawyer about getting a contract in place (that addresses IP ownership, rights, responsibilities, insurance, indemnification, revenues and many other... View More

1 Answer | Asked in Business Formation for Texas on
Q: Forming an Entity Question

If a client comes to you seeking to form an entity for his one-man business as a consultant in the oil & gas industry, would you suggest that he form an LLC or an S-Corp?

The client's projected annual gross income is $450,000. He has business expenses, but no employees. Would... View More

Adam Studnicki
Adam Studnicki
answered on Aug 29, 2015

Talk to a CPA about which tax situation is best. An LLC can be taxed as a sole proprietorship (if it only has one owner) or an s-corp (or a c-corp). A business lawyer can help with the entity selection and formation.

Please Take Notice: I am not your lawyer unless we enter into an...
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1 Answer | Asked in Business Formation for Texas on
Q: I would like to import classic cars (over 25 years older) and wine from Spain to USA. What type of company do I need?

I am a USA citizen.

Adam Studnicki
Adam Studnicki
answered on Aug 29, 2015

A business lawyer can advise based on your specific circumstances. I'd also talk to a CPA.

Please Take Notice: I am not your lawyer unless we enter into an engagement agreement in writing. This is general information that is given for legal education only. It is not legal advice, and...
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1 Answer | Asked in Business Formation for Texas on
Q: Do you have a certificate of conversion of a for profit corporation to a non-profit corporation form???
Douglas J. Shumway
Douglas J. Shumway
answered on Aug 5, 2013

The most up to date forms can often be found on the applicable State's website relating to corporate filings. There might be a few attorneys out there that still use their own forms that they update from time-to-time to comply with changing statutes, but most corporate lawyers just utilize... View More

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