A merger or acquisition is one of the most complex transactions that a Texas business–or, in this case, multiple Texas businesses–can enter into. There is no such thing as an “impulse buy” when it comes to M&A. Both sides need to perform “due diligence” before closing a final deal. Mistakes…
Numerous entrepreneurs in Texas believe they have ideas capable of evolving into billion-dollar startups. However, transforming these ideas into viable businesses involves careful planning. Several key steps must be taken before these startups can officially launch or become attractive to potential venture capital investors. This process ensures that the foundational…
We often see business owners ignore corporate formalities after incorporating their businesses. They labor under the misconception that forming a corporation[i], provides them with a full-proof shield from personal liability, despite how they conduct corporate affairs post incorporation. Many are not aware of the doctrines of “piecing the corporate veil”…
A founders’ agreement is a contract between co-owners of a business that outlines each of their roles and responsibilities, ownership interests, and rights in the business. It may be a standalone document or may be incorporated into a shareholders’ agreement, a partnership agreement, or an LLC agreement. In this piece,…
Alternative Dispute Resolution (ADR) offers a great way to settle disputes without stepping into a courtroom. Two of the most popular methods of ADR are mediation and arbitration. Both provide efficient, private alternatives to traditional litigation, but they are quite different when it comes to the process and the results.…
It is common for startup founders to forgo cash-based compensation and accept only equity in exchange for their services to their startups. Most startup founders assume wage and hour laws are inapplicable to them because they are the owners of their business. However, founders, much like non-owner employees, cannot, under…
Texas entrepreneurs often embody a ‘do-it-yourself’ (DIY) ethos. In a typical startup, a compact team of committed individuals assumes various roles across the organization. While this approach can be instrumental in driving a company towards success, applying a DIY mindset indiscriminately can be detrimental and lead to significant costs for…
In this second of our series of blog posts on common misconceptions around hiring and working for startups, we address a common misconception around classification of independent contractors. Most startup owners do not want to deal with the costs of hiring employees. So, many engage new hires as independent contractors.…
In 2025, Texas employers will face several key updates to employment laws that could significantly affect workplace policies. While Texas maintains its reputation as a business-friendly state with fewer regulations, new legislation at the state and federal levels aims to address employee rights, workplace safety, and wage issues. Below are…
Once you have started your own business, one of the first decisions you must make is choosing the form in which you want to conduct your business – whether as a sole proprietorship (or partnership, in case of more than one founder) or by organizing your business in an entity…