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Texas Law Update

Cross Pollination: Don’t Limit Yourself

R. Shawn McBride recently published an article to the McBride For Business Blog on a topic that might be of interest: Cross Pollination:  Don’t Limit Yourself. He examines how some regions are better at manufacturing, some regions are better at capital formation, some regions are better at fostering start-up companies and some regions are better for Fortune 500 companies. You…

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Head East Young Man: Moving Your Business from California to Texas (Part IV of IV)

So you are moving from California to Texas?  What about existing business? In our experience, may people move their legal entity as part of a relocation. They just don’t want to be dealing with the old state any more. Existing Contracts. Obviously, the first issue is the XYZ, LLC, a California limited liability company is now XYZ, LLC, a Texas…

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Head East Young Man: Moving Your Business from California to Texas (Part III of IV)

What does it look like to change States of Formation? Changing your state of formation can be a lot less painful than it used to be.  Don’t worry – we’ll dive into some of the legal terms you are about to read in detail later in this blog. Conversion.  In many cases a conversion can be done.  Both the state…

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Personal Liability for Environmental Violations (Part III)

In State v. Pure Tech Systems, Inc.,[1] the property at issue had been used for petroleum and hazardous substance operations dating back to the 1880s and was already subject to the state’s closure order by the time it was transferred to Pure Tech Systems, Inc. (“Pure Tech”).  Subsequently, the City of Cleveland issued a citation to close the facility for…

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Head East Young Man: Moving Your Business from California to Texas (Part II of IV)

So if you are considering moving your company from California to Texas, how is it done? Like most things it will probably be easier if broken down into steps. Step 1 – Where are you Legally Formed?  The first step is to assess where things stand currently. Many business owners form a company in the state they start operations. So…

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Personal Liability for Environmental Violations (Part II)

In Morello v. State,[1] White Lion Holdings, L.L.C. (“White Lion”), a company owned by Morello, bought a piece of real property that was previously used as a pipe-manufacturing facility.  The previous owner of the property had a state-issued compliance plan to clean up groundwater contamination at the facility, which was also transferred to White Lion after the purchase.  A few…

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Personal Liability for Environmental Violations (Part I)

As you know, one of the principal advantages of forming a limited liability company or corporation is that it offers protection from liability for business debts and obligations.  As you also know by now, however, this liability shield is not absolute.  We explained in our previous blog series “LLC Update: Piercing the Corporate Veil” that in certain limited situations, courts…

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Head East Young Man: Moving Your Business from California to Texas (Part I of IV)

Numerous articles in the popular press have shown the demographic shifts and that a lot of people are moving from California to Texas.[1]  Naturally some of the people moving into Texas are going to be business owners. While we don’t have the hard statistics, our hunch is that there are a lot of business owners that are part of the…

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Business Divorce and Attorney-Client Relationship

In our previous blog post titled Is My Company’s Lawyer Also My Lawyer?, we talked about attorney-client relationship in the context of an LLC business divorce case.  In that case, Yun, one of the two business partners, refused to produce certain documents in her possession during discovery, claiming attorney-client privilege.  For a party to asset this privilege, however, there must…

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Texas Law Update: Can I Make My Employee Sign a Non-Compete/Non-Solicit? (Part II)

For a non-compete/non-solicit to be enforceable under Texas law, it must be reasonable as to time, geographic area, and scope of activity.  Needless to say, it is a fact-specific inquiry and there is no one-size-fits-all answer.  Generally speaking, however, a restrictive covenant that does not bear some relation to the activities of the employee or that contains an industry-wide exclusion…

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