Austin TX Business Law Blog

What steps should I take to open my own business in Texas?

So you have decided to open your own small business. Congratulations! You have taken an important step towards obtaining financial security and becoming your own boss, but there are several critical steps you must take to start your business off right.  Review our guide to opening your own small business in Texas and contact our Austin, Texas business startup and formation lawyer at the Kumar Law Firm PLLC when you are ready to get started.

What challenges might a small business owner in Texas face?

Texas recently celebrated small businesses during Small Business Saturday, an event held on Saturday, November 26.  Texans were encouraged to shop and dine local to support the hard working small business owners in their community.  Small businesses drive the economy in Texas, with over 2.4 million small businesses currently operating in the state.  In fact, small businesses comprise 98.
Read more . . .

How can I protect my trademark abroad?

Retired NBA all-star Michael Jordan recently prevailed in a long-running trademark dispute in China.  Michael Jordan initially filed suit against Qiaodan Sports Co. in 2012, alleging that the company’s use of the name “Qiaodan” infringed on his right to his own name and violated trademark law.  Qiaodan is Jordan’s name translated in Chinese.  The people of China widely refer to Jordan as Qiaodan.
Read more . . .

Sensitivity and diversity are two hallmarks of a well-run, properly-managed business. Across the nation, many have denounced policies drafted to exclude certain groups, most notably the recent outcry over transgender bathroom policies. Earlier this year, lawmakers in North Carolina enacted legislation prohibiting transgender individuals from using lavatory facilities congruent with their self-identified gender. In response, many businesses, entertainers and sporting events criticized the policy and vowed to take their talents elsewhere. Now, a similar measure is meandering through the Texas General Assembly, and hundreds of Texas businesses have likewise condemned the policy as exclusionary and unnecessary.

Non-compete agreements are a hallmark of competitive business practice. Oftentimes, employees learn of valuable trade secrets while on the job, and employers have a keen interest in prevent the dissemination of this proprietary information to their competitors. To accomplish this, employees are often asked to sign non-compete agreements upon hire, which prevent the employee from immediately working at a close competitor within a certain geographic area immediately after quitting or facing termination.
Read more . . .

How could Austin’s growing population impact my future business?

New research by American City Business Journals (ACBJ) suggests that Austin is about to significantly increase its population.  The ACBJ, a parent company of the Austin Business Journal, projects that Austin will grow faster than any other large American city in the next 25 years, doubling its current population.  Right now, Austin is home to about two million people.  It is expected to reach four million by the year 2040.

Austin is one of several cities predicted to skyrocket in coming years.

What surprises might await you when you purchase property for your new business?

A news story that appeared recently thanks to an anonymous whistleblower in Lubbock, reminds us all that buying a local business can be trickier than it first appears. This is why, no matter how savvy you think you are, you should always hire a skilled, knowledgeable business attorney before purchasing a business.

Case of Uncommon Building Codes

In the case mentioned, a local business owner approached KLBK and EverythingLubbock.

Why is Austin attracting so many startups and entrepreneurs?

Austin continues to be a magnet for startups for  a variety of reasons. The region offers a favorable cost of doing business, a well educated labor force, a good lifestyle and good weather, all of which are attracting young people to the area. Combine these factors with no personal income taxes, and a low cost of living, and it makes for an environment well suited for entrepreneurs.

Growing Workforce

The educated workforce is due in part to the University of Texas at Austin and other area universities, that also attract foreign students. A educated, diverse population is beneficial to employers and a boon to business growth.

Is purchasing a franchise a good idea for you?

For people who want to start businesses but are worried about the risk involved, franchises may sound like the answer to their prayers. Theoretically, franchises follow well-established, successful models that have already proven to be effective. The franchisee is supposed to be supplied with the appropriate quantity of tried and true products and accessories necessary to create a successful business. He or she feels assured of customers because production, pricing, advertising, and marketing strategies are already in place.

Unfortunately, while starting a business from scratch is risky, purchasing a franchise can be risky too.

How can I ensure the continuity of my small business?

Launching a small business involves a number of critical decisions such as selecting the right business structure and putting in place agreements that clarify the relationship among the owners and/or partners such as partnership and shareholder agreements. If the business is structured as a partnership or a small LLC, it is also crucial to institute a buy sell agreement.

This legal document specifies how the ownership interest will be redistributed in the face of unexpected events such as the death, disability, bankruptcy, or divorce of one of the owners. In short, a buy sell agreement affords the surviving owners with a means of redeeming the stake of the departing owner.

Types of Buy Sell Agreements

There are three types of buy sell agreements: cross-purchase agreements, stock-redemption agreements and hybrids.

Should my business include non-compete provisions in its employment agreement?

Many businesses rely on non-compete provisions in employment agreements to prevent job changing employees from taking proprietary information to competitors. These provisions allow trade secrets and other sensitive information to be shared with insiders while minimizing the risk that the information will be misappropriated.  In light of a recent report by the White House, however, the use and effects of non-competes are being questioned.

Some employment law observers argue that these provisions unfairly restrict employees' mobility and their ability to advance in their field. Moreover, state and federal regulators are becoming increasingly concerned that these provisions are being used inappropriately for low wage workers who do not have access to sensitive information.