Forming a new business involves navigating a complex legal landscape, and seeking the assistance of a general counsel during the formation process can be invaluable. If you are looking to start a business, contact a lawyer to ensure that all proper protocol is followed during the formation process. There are some people out there who may be inclined to start their business on their own instead of hiring a legal professional as a way of saving money. This logic is misguided, as forming a business without the legal assistance of an attorney can prove catastrophic in ensuring that everything about your business is in accordance with the law. 

Three Ways a General Counsel Can Help You Form Your Business

1. Legal structure and entity – Choosing the proper legal structure for your business is crucial. General counsel can help you understand the different options available, such as sole proprietorship, partnership, limited liability company (LLC), or corporation. They will guide you through the process of entity formation, ensuring compliance with Texas law, drafting necessary documents, and filing registration forms. General counsel can also provide insights into the benefits and limitations of each structure, helping you make an informed decision that aligns with your business goals. 
2. Regulatory compliance – Complying with various regulations and legal requirements is essential for any business. General counsel can assist in identifying the applicable laws and regulations specific to your industry and location. They will help you establish internal policies and procedures that align with regulatory guidelines, reducing the risk of non-compliance and potential legal issues. General counsel can also provide ongoing advice and guidance to ensure your business remains compliant as regulations evolve.
3. Contracts and agreements – Drafting and negotiating contracts is a critical aspect of starting a business. General counsel can help you create legally binding agreements tailored to your specific needs, such as client contracts, partnership agreements, employment contracts, and vendor agreements. They will ensure that your interests are protected, minimize potential risks, and provide guidance on contract negotiation and enforcement. General counsel can also review contracts presented to your business, ensuring you fully understand the terms and implications before signing. 

Contact Hood County General Counsel Lawyer 

During the formation process of a business, the general counsel plays a vital role in establishing a solid legal foundation. Contact the skilled Tarrant County general counsel attorneys with Cain & Kiel Law for legal assistance in forming your business. Call 817-645-1717 for a private consultation. 

Contracts play a vital role in business and commercial law, outlining the rights and responsibilities of the parties involved. However, when it comes to contracts, not all breaches are the same. In simple terms, a material breach of contract occurs when someone does not do what they promised they would do in the contract, significantly harming the other party’s rights or benefits. It is essential to understand the concept of a material breach of contract in straightforward terms, helping individuals understand its importance, implications, and how a Texas business lawyer can help if you are dealing with an individual or entity who has engaged in a material breach of contract. 

Unpacking the Seriousness of a Material Breach of Contract

To determine if a breach is material, we must consider a few key factors:

1. Importance of the obligation – How crucial was the obligation to the overall purpose of the contract? If the broken promise is central to the agreement’s main objective, it is more likely to be deemed a material breach. 
2. Impact on performance – How does the breach affect the other party’s ability to receive the agreed-upon benefits? It may be considered material if it significantly impairs their ability to fulfill their part of the contract or undermines its purpose. 
3. Willful or intentional conduct – If the party knowingly and deliberately fails to meet an essential obligation, it is more likely to be classified as a material breach. This means that a party intentionally chose not to fulfill their promise. 
4. Availability of substitute solution – If the non-breaching party can reasonably find an alternative solution or fix any damage caused by the breach, it may be seen as less material. However, if finding a substitute is impractical or inadequate, the breach is more likely to be considered material. 

Legal Implications 

A material breach of contract can carry significant legal consequences, including:

For years, trucking companies in Texas and throughout the U.S. have protested the ease with which plaintiffs who have been injured in trucking accidents can tie businesses up in litigation. Most trucking accidents that involve more than one party occur because one or more vehicle operators have made an error when driving. It is, therefore, often appropriate to question whether a truck operator has made a mistake that contributed to the cause(s) of a crash. However, it is rarely appropriate to assume that a truck operator’s human error is rooted in the business practices of their employer.

Texas lawmakers have taken notice of the frequency with which injury victims name trucking companies as defendants in litigated disputes and they have recently taken significant action to address this situation. In implementing a new bifurcated truck litigation scheme, Texas legislators have made it less likely that trucking companies will be tied up in litigation when their business and employment practices have nothing to do with the cause of a crash.

Business Operations Do Not Automatically Result in Liability

Companies may potentially be held liable for harming individuals and other entities in the event that their business practices, failure to uphold business agreements, and other negligent or willful misconduct causes another’s harm. Yet, this does not mean that simply because a business operates, it may be held liable for the actions of one of its employees.

If you are thinking about structuring a new business venture as a corporation, you may understandably have concerns about partially surrendering control of your vision to other stakeholders. While it is true that corporations are generally owned by more than one shareholder and are managed by boards of directors, you can approach your business in a number of ways that will help to preserve your vision. Structuring your company as a corporation does not mean that your venture will no longer be “yours.”

How Does a Board of Directors Operate? 

Although there are some exceptions to this structure, most corporations in the U.S. are governed by a board of directors and run by a management team. Although managers can sit on a corporation’s board, those who govern a corporation and those who manage its day-to-day operations need not overlap. Generally speaking, board members are voted into their positions by shareholders, whereas managers are hired by the board.

Do All Shareholders Have a Say in How a Corporation Is Run?

There are two primary ways that corporations can structure the way shares in a company translate into votes. In some scenarios, each shareholder gets a single vote, regardless of the number of shares in the company they own. In others, each share translates to a single vote. This means someone could own hundreds of shares in a company and benefit from significant voting power as a result. When thinking about how much influence you want to retain within your new business, you will want to weigh the potential benefits and drawbacks of each approach given how many shareholders your company is likely to attract.

The entrepreneurial spirit is strong in Texas, so it is not surprising that hundreds of thousands of new companies are formed in the Lone Star State each and every year. Most of these new companies are smaller and primarily serve their local communities. Others aim to reach consumers far and wide online. And still, other companies are launched as large, complicated operations with broad appeal and aims to expand as rapidly as possible.

The law recognizes that companies meant to serve the residents of a small town and those with aspirations of becoming international tours de force need to be structured differently. In order to serve companies operating under a range of circumstances, Texas allows business owners to choose from a variety of different business formation structures when they go through the process of having their new enterprises recognized by the state.

Your Primary Options

There are four primary formation structures that new Texas business owners can choose from. Some of them are more well-suited to smaller enterprises and others are more well-suited to higher-risk ventures and complicated operations. They all feature potential benefits and drawbacks: