Austin TX Business Law Blog

Businesses of different sizes and in different industries need to be aware of the real threat of fraud. Fraud can take so many different forms it can be difficult to consider where to even begin protecting your business from falling victim to such criminal actions. Cybercriminals, in particular, are most adept at adapting and changing their modes of operation in order to try and infiltrate businesses.
Read more . . .

A shareholder agreement is a foundational legal document for a business. Established between company shareholders, this agreement details the rights and responsibilities of the shareholders as well as detailing how the company will be set up and run. While taking the time to go through and set all of the terms of a shareholder agreement may seem cumbersome, especially when time is money, doing the work on the front end of things can be a cost-effective way of reducing the chances of expensive and time-consuming issues arising in the future.

What Is the Purpose of a Shareholder Agreement?

The shareholder agreement contains terms that will help ensure shareholders and other integral players in your company are on the same page. While such agreements can have a variety of terms and vary in degrees of specificity, the terms that are involved go to the heart of how a company operates as well as how shareholder issues are addressed and, hopefully, prevented.
Read more . . .

For the intrepid entrepreneur, starting a small business can be a rewarding and fulfilling adventure. Among many of the ways to describe small business ownership, however, the word “easy” would not usually be present. Small business ownership comes with risks.
Read more . . .

In the business world, contracts are going to come up, one way or another. Contracts in business serve a variety of purposes and can be useful both internally and when establishing relationships with vendors and clients. When properly executed, contracts can protect your business dealings and promote the sustainable growth of your business endeavors. When proper precautions are taken when contracting, however, there can be serious and lasting repercussions. The fallout can be both immediate and be felt for an extended period of time as problems further develop and potential litigation ensues.
Read more . . .

Most of us have signed an adhesion contract even if we were not aware that what we were signing was an adhesion contract. These types of contracts have the terms drafted just by one party. The signee of the contract has no input on the contract terms. As such, courts will be reluctant to enforce an adhesion contract if certain precautions are not taken because of the great disparity in bargaining power of the two parties to the agreement. Sometimes referred to as “boilerplate contracts,” adhesion contracts, when properly executed, can be extremely helpful to businesses.
Read more . . .

Sometimes there are business formalities that should be observed despite there being no legal obligation to do so. This is true, for instance, with employee handbooks. While there is no legal requirement for a business to develop and distribute an employee handbook, it can have huge benefits for your company, including protecting it from legal trouble down the road.
Read more . . .

Most of us have signed an adhesion contract even if we were not aware that what we were signing was an adhesion contract. These types of contracts have the terms drafted just by one party. The signee of the contract has no input on the contract terms. As such, courts will be reluctant to enforce an adhesion contract if certain precautions are not taken because of the great disparity in bargaining power of the two parties to the agreement. Sometimes referred to as “boilerplate contracts,” adhesion contracts, when properly executed, can be extremely helpful to businesses.

The importance of laying a solid foundation for your startup cannot be understated. In the excitement of planning for the launch of your new company, it can be tempting to press forward and leave some of the seemingly mundane tasks by the wayside. Formalities and legal protections, the things that may seem not so thrilling, can be incredibly important.

Take company bylaws, for instance. This is the document that will set forth the business of your business.

The corporate structure offers a variety of benefits. There can be major tax benefits and major liability benefits. You see, the corporate structure offers owners limited liability meaning they will not be held liable for actions taken by the corporation. In some situations, however, the “corporate veil” protecting owners from liability may be pierced if a court believes the corporation is merely a front. As such, it is critical for corporate formalities to be upheld or risk legal consequences and putting your personal assets at risk.
Read more . . .

Business succession planning involves establishing protocol for passing leadership roles down the chain of command within a company. It involves identifying key leadership roles, what those roles require, and who within the company would be fit to take over when the need arises. It is only natural for there to be some turnover in a company and this includes turnover at the management and executive level.
Read more . . .

If you are considering establishing your business as a limited liability corporation (LLC), then you are going to need an LLC operating agreement. Not only does this agreement govern the operation of your LLC, but it sets forth key details relating to the inner workings of the LLC that will be critical to clearly communicate to the LLC members. In setting forth key provisions in the LLC operating agreement, you provide clear guidance on how important matters are to be handled within the LLC.
Read more . . .