Forming a Texas Business Corporation
A corporation is a legal entity that is granted a charter recognizing it as a separate legal entity having its own privileges, and liabilities distinct from those of its shareholders. When it is formed it becomes a separate entity from the people who own the stock of the corporation. For this reason, a corporation’s actions are made by the corporation and not by an individual person. This legal distinction is what separates the liability of the Texas corporation from the individual and is a major consideration in deciding to form a corporation.
Anyone can form a corporation in Texas. A corporation can form another corporation. Once the corporation is formed, the entity formed is responsible for all actions done in the corporate name. The new entity is required to file state and federal taxes and acquire any licenses to do business in the name of the corporation. The corporation can purchase insurance, own real estate and cars and other assets or personal property as if were a natural person. It is responsible for actions both good and bad done in its name. If a corporation fails, shareholders normally only stand to lose their investment, and employees will lose their jobs, but neither will be further liable for debts that remain owing to the corporation’s creditors.
Corporations can exercise human rights against real individuals and the state, and they may be responsible for human rights violations. There are five core characteristics of a business corporation:
•Legal personality
•Limited liability
•Transferable shares
•Centralized management under a board structure
•Shared ownership by contributors of capital
Generally, the corporation files articles of incorporation with the government, laying out the general nature of the corporation, the amount of stock it is authorized to issue, and the names and addresses of directors. Once the articles are approved, the corporation’s directors meet to create bylaws that govern the internal functions of the corporation, such as meeting the procedures and officer positions.
•Some of the advantages of a corporation are as follows:
•Shareholders have limited liability for the corporation’s debts or judgments against the corporation.
•Generally, shareholders can only be held accountable for their investment in stock of the company.
•A Texas corporation may deduct the cost of benefits it provides to officers and employees.
•A corporation pays 15% federal income tax on taxable income up to $50,000; 25% tax on income from $50,001 – $75,000; 34% tax on income from $57,001 – $100,000; 39% tax on income from $100,001 – $335,000; and 34$ tax on income over $335,001
There are some disadvantages to a corporation. The process of incorporating a business in Texas may require more time and money than other forms of organizations and the corporation may be monitored by federal, state and some local agencies and as a result require have more paperwork to properly comply with regulations. Incorporating may also result in higher overall taxes in some circumstances.
For answers to your questions on forming a business corporation in Texas, contact Dallas business attorney Mark Nacol with the Nacol Law Firm, P.C.
Will Contest
The requirements for testamentary capacity are minimal. Some courts have held that a person who lacks the capacity to make a contract can still make a valid will. While the wording of statutes or judicial rulings will vary from one jurisdiction to another, the test generally requires that the testator was aware of:
• The extent and value of their property
• The persons who are the natural beneficiaries
• The disposition he is making
• How these elements relate to form an orderly plan of distribution of property.
The legal test implies that a typical claimant in a will contest is a disgruntled heir who believe he should have received a larger share than what he received under the will. Once the challenging party meets the burden of proof that the testator did not possess the capacity, the burden subsequently shifts to the party propounding the will to show by clear and convincing evidence that the testator did have the requisite capacity.
Duress or coercion (as a term of jurisprudence) is a possible legal basis to set aside or otherwise modify a will, in that, the execution of the will by the Testator/Testatrix arises out of an immediate fear of injury. Black’s Law Dictionary (6th ed.) defines duress as “any unlawful threat or coercion used… to induce another to act [or not act] in a manner [they] otherwise would not [or would].”
To establish duress, four requirements must be met:
• Threat must be of serious bodily harm or death
• Harm threatened must be greater than the harm caused by the crime
• Threat must be immediate and inescapable
• The defendant must have become involved in the situation through no fault of his or her own
A person may also raise duress when force or violence is used to compel him to enter into a contract, or to discharge one.
Depending on the grounds, the result may be:
• Invalidity of the entire Last Will and Testament, resulting in an intestacy.
• Invalidity of a clause or gift, requiring the court to decide which charity receives the charitable bequest, using the equitable doctrine of cy pres
• Dimunition of certain gifts, and increase of other gifts to the widowed spouse or orphaned children, who would now get their elective share.
The Nacol Law Firm PC
8144 Walnut Hill Lane
Suite 1190
Dallas, TX 75231
Metro: 972-690-3333
Toll Free: 866-352-5240
Fax: 972-690-9901
www.NacolLawFirm.com
Interference with Child Custody in Texas
In the State of Texas, interference with child custody is punishable both civilly and criminally.
According to the Texas Family Code, a person who takes, retains, or conceals the whereabouts of a child at a time when another person is entitled to possession or access of the child may be liable for civil damages to that person.
The damages that may be recovered are expenses incurred while locating the child, securing the possession of the child, and enforcing the order, including attorneys fees. One may also be entitled to mental suffering and anguish incurred due to the interference and violation of the order. One may also be entitled to exemplary (punitive) damages if the violating party acts with malice, or an intent to harm the other party.
A violator can also be held criminally liable for interfering with child custody. According to the Texas Penal Code, a person commits an offense if they take or retain a child younger than 18 years of age, and:
- The person knows their taking or retention violates the express terms of a judgment or order, including a temporary order, of a court disposing of the child’s custody; or
- when the person has not been awarded custody of the child by a court of competent jurisdiction, knows that a suit for divorce or a civil suit or application for habeas corpus to dispose of the child’s custody has been filed, and takes the child out of the geographic area of the counties composing the judicial district if the court is a district court or the county if the court is a statutory county court, without the permission of the court and with the intent to deprive the court of authority over the child; or
- outside of the United States with the intent to deprive a person entitled to possession of or access to the child of that possession or access and without the permission of that person.
A noncustodial parent commits an offense if, with the intent to interfere with the lawful custody of a child younger than 18 years, the noncustodial parent knowingly entices or persuades the child to leave the custody of the custodial parent, guardian, or person standing in the stead of the custodial parent or guardian of the child. Such an offense is a state jail felony which, if prosecuted, can lead to fines of up to $10,000.00 and anywhere from 180 days to two years in state jail.
Nacol Law Firm – Dallas Custody Attorneys – Dallas Divorce
Disclaimer: The information provided in this article is in no way intended to constitute legal advice. The information provided is merely an overview of the relevant law. Do not act on this information. Always consult an attorney for legal advice.
Holding an Inspector Accountable When Purchasing a Home
The housing market has exploded in the Dallas / Ft. Worth area in the last several years through the move of many companies to relocation national/regional headquarters to Texas. New jobs have created an explosion in the DFW housing market bringing in many potential buyers. A nice home in a good neighborhood may last only a couple of days before it is sold.
Potential buyers must be prepared when purchasing a home in the Lone Star State. After the initial offer, it is customary to have 8-12 days for a potential buyer to have the prospective home inspected by an independent third party. During this time, it is important to find an inspector that you trust.
If the home inspector performs a negligent inspection or misrepresents the condition of a part or a defect in the home that causes expensive problems for the buyer, the inspector may be liable. The Texas Deceptive Trade Practices Act (DTPA) will protect a buyer from the misrepresentation of an independent inspector. Under the DTPA per Tex. Bus. & Comm. Code §§ 17.46(b) there are multiple causes of action to insure your protection if an inspector committed an action that:
(a) represented that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(b) causing confusion or misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
(c) causing confusion or misunderstanding as to affiliation, connection, or association with, or certification by, another;
(e) representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits, or quantities which they do not have or that a person has a sponsorship, approval, status, affiliation, or connection which he does not;
(f) representing that goods or services are of a particular standard, quality, or grade, or that goods are of a particular style or model, if they are of another;
(g) knowingly making false or misleading statements of fact about the need for parts, replacements, or repair service;
(h) falsely representing that work or services have been performed on or parts replaced in goods; and
(i) failing to disclose information concerning goods or services which was known at the time of the transaction if such failure to disclose such information was intended to induce the consumer into a transaction into which the consumer would not have entered had the information been disclosed;
These are some of the causes of actions that can be filed against a home inspector that misrepresented a portion of the home that had a severe defect. DTPA actions can be complex and intricate both in filling the action and in litigation of the case. An experienced real estate attorney is needed if you wish to pursue a remedy.
Julian Nacol, Attorney
Nacol Law Firm P.C.
Civil Litigation in Texas – Do You have a Case
Have you been harmed by the actions of another person or business in Texas? The Nacol Law Firm PC, in Dallas TX, represents clients in a broad scope of civil disputes, including:
Business Litigation,
Contract Disputes,
Real estate litigation and disputes,
Corporate litigation,
Probate and Will contests,
Employment agreements,
Breach of contract,
Breach of non-disclosure agreements,
Violation of fair-trade practices,
Breach of fiduciary duty,
Home-builder and seller warranty disputes,
Construction litigation,
Fraud.
NACOL LAW FIRM P.C.
8144 Walnut Hill Lane
Suite 1190
Dallas, Texas 75231
972-690-3333
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Attorney Mark A. Nacol is board certified in Civil Trial Law by the Texas Board of Legal Specialization
