Austin TX Business Law Blog

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.
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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.
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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.
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Have you heard that the FTC has proposed a ban on non-competes? It’s true! The Federal Trade Commission (FT) proposed a new rule in January of this year that would ban employers from imposing non-competes on their workers. Employers throughout the U.S. should be aware of these proposed rules and their status as they work their way through the comment period, which is open through March 20, 2023.

FTC’s Proposed Ban on Non-Competes

The rule proposed by the FTC would put a general ban on employers using non-compete clause.
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Those in the business world, owners, entrepreneurs, and employees, should have a basic understanding of business law as this are of the law obviously can have a big impact on their lives and livelihood. Here, we’ll take a look at some business law basics to get a better understand of what this robust area of the law entails and how it impacts those at varying levels in the business world.

Basics of Business Law

First thing is first, business formation is a key aspect of business law and it can be difficult to wade through. There are a number of different types of business entities and each have their own set of liability, taxation, and other issues that can have powerful ramifications for a business and those involved in a business. Entrepreneurs looking to establish a business should familiarize themselves with the various types of business entities and what types may best suit their needs.
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Owning and operating a business is taxing. There is always something to do and there are always things on that seemingly never ending to-do list that keeping getting pushed to the next day or the day after and so on and so forth. This means that even when everything is going smoothly for your business, there never seems to be enough time. Throw a business dispute in there and it becomes the proverbial wrench in the operation. The fact is most businesses can be seriously impacted by a dispute arising.
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There is no way around it, starting a new business is tough. It does, however, come with big potential rewards. You have the opportunity to be your own boss and build something from the ground up. Business start-up leaders pour their hearts, souls, time, and money into these ventures and the payoffs can be significant on a number of levels. Before launching your business start-up, you would be well served to confront and tackle some of those top challenges that all business start-ups seem to be facing these days.
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As a legal entity, a corporation will exist indefinitely unless steps are taken to formally end its existence. The corporation must be dissolved. Without going through the formal dissolution process, the corporation will continue to exist as a legal entity which comes with reporting requirements and other obligations.
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A non-compete agreement is a restrictive covenant that is often included in certain employment agreements. The non-compete agreement looks to put restrictions on an employee’s activities once the employment relationship has ended. While non-compete agreements can serve legitimate business interests, many states are highly sensitive to them as they are suspicious of any restriction on a person’s ability to seek gainful employment after a certain employment relationship has ended. As such, in some areas, a non-compete agreement may be found invalid. This is true in Texas.
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Texas is one of the most business-friendly states and offers a number of cities where the cost of living is lower than in other parts of the country. As such, small and mid-sized businesses have been flocking to the state. With these benefits and no state income tax, many are realizing that the move can be well worth it.
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Using the digital space for one reason or another is becoming an essential part of more and more businesses every day. Everything from business accounts to personal data is stored digitally. Unfortunately, personal data is held at a premium and worth seeking to exploit by many. With many out there looking to poach private personal data for profit, businesses need to take cyber security seriously or reap some pretty serious legal and business consequences. Steps to put preventative measures in place to guard against cyber attacks on your business can be well worth it.
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