Frequently Asked Questions
Frequently Asked Questions
Q: What are the benefits of incorporating my business?
A: Many people choose to create a business because they want to establish a separate legal entity and limit their personal liability. If you do not form a separate business entity, your business will be considered a sole proprietorship. If your company is sued, your personal assets are in jeopardy. When you have an incorporated business, only the business assets are in peril. Additionally, there are significant tax advantages to incorporating a business or forming a limited liability company. Another benefit is that businesses may be eligible for cash grants through the Texas Enterprise Fund.
Q: What are Texas Deceptive Trade Practices?
A: The Texas Deceptive Trade Practices Consumer Protection Act protects consumers against certain unethical business practices, including breaches of warranty and unconscionable acts. It also protects consumers against a variety of actions considered false, misleading or deceptive, which include:
- Claiming products or services belong to one business when they actually belong to another.
- Causing confusion about an association between businesses
- Misrepresenting that goods are sponsored or approved by certain entities when they are not
- Representing used or refurbished goods as new
- Taking advantage of a disaster situation
- Charging an exorbitant fee for fuel
- Making false or misleading statements about another business or its products or services
Q: How much does it cost to form an LLC in Texas?
A: In order to form an LLC in Texas, you must file a Certificate of Formation with the Texas Secretary of State, which is $300. You also have to assign a registered agent, which varies from being free to up to $125 for a commercial registered agent. You will also be responsible for paying attorney’s fees. An experienced attorney will complete the following tasks when forming your LLC:
- Register the legal name of your business
- Create an LLC operating agreement
- Establish an EIN for your business
- File a franchise tax report
- File a public information report
Q: How do I obtain a business license in Texas?
A: After you have decided on a business structure, selected your business name, and registered the business with the state government, you can then work on obtaining a business license in Texas. While the state does not require a general business license, a number of regulatory agencies do require that you have a particular license or permit before you can conduct certain types of business activities in Texas. These licenses or permits allow you to legally operate in your city or county. The process to obtain an occupational license or permit depends on your industry.
Q: what is a contract?
A: In the simplest definition, a contract is a promise enforceable by law. The promise may be to do something or to refrain from doing something. The making of a contract requires the mutual assent of two or more persons, one of them ordinarily making an offer and another accepting. If one of the parties fails to keep the promise, the other is entitled to legal redress. The law of contracts considers such questions as whether a contract exists, what the meaning of it is, whether a contract has been broken, and what compensation is due the injured party.
* A contract with a minor is not legally enforceable. Because of age and presumable lack of experience, the law considers a minor contractually incapable.