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972-248-8080 DALLAS
713-830-2207 HOUSTON
512-691-4100 AUSTIN
a blue and orange check mark with the letter w on it as the Wilson Whitaker Rynell Logo

Business Dissolution in Texas: Closing Your Company Legally and Responsibly

John Wilson • August 25, 2023

Business Dissolution in Texas: Closing Your Company Legally and Responsibly

When partners decide to go their separate ways in a business venture, the process can be as challenging and emotional as a marital divorce. In the legal field, this is often referred to as a "business divorce." It involves untangling the financial and operational ties that bind business partners together. As with any separation, there are multiple issues that need to be addressed, such as the division of assets, financial settlements, and the future of the business. For businesses in Texas, the state's legal framework plays a crucial role in how these issues are resolved. This article explores the problems associated with business divorces and the need for litigation in these scenarios.

The Process of Dissolving a Business in Texas

Assuming you do not need litigation or your litigation has already resolved, "winding down" is the process of business dissolution in Texas and an important step in concluding the affairs of a business. Dissolution is a legal process that terminates the existence of a business entity. It is a formal and necessary process that involves several steps to ensure that the business's obligations are met, and its assets are distributed appropriately. Dissolution protects the owners from future liabilities and ensures that the company's affairs are wrapped up legally and responsibly. In Texas, the business dissolution process typically involves the following steps:


  1. Board Resolution: The process starts with the company's governing body, such as the board of directors or the members in an LLC, passing a resolution to dissolve the business. This step may involve a vote, and the process will be governed by the company's bylaws or operating agreement. The resolution should document the reason for dissolution, the date of dissolution, and any additional relevant information.
  2. Filing with the Secretary of State: Once the resolution is passed, the company must file a certificate of termination with the Texas Secretary of State. The certificate must include the name of the company, the date of incorporation, the reason for dissolution, and a statement indicating that all debts and liabilities have been taken care of or adequately provided for. There is a filing fee associated with this step.
  3. Notifying Creditors: After filing with the Secretary of State, the company must notify its creditors of the dissolution. This step is essential to ensure that the company addresses any outstanding debts or obligations. Creditors should be given a deadline to submit their claims, and the notice should provide instructions on how to do so. Any unresolved claims could expose the owners to personal liability.
  4. Winding Up: The company must "wind up" its affairs, which includes settling outstanding debts, liquidating assets, and distributing any remaining assets to the owners according to their ownership interests. This step ensures that the company's obligations are met, and its assets are distributed appropriately.
  5. Tax Clearance: The company must file final tax returns with the Texas Comptroller of Public Accounts and obtain a tax clearance certificate. This certificate indicates that the company has no outstanding tax liabilities.
  6. Final Reports: The company may need to file final reports with various state and local agencies, including the Texas Workforce Commission and local taxing authorities. These reports ensure that the company has met all of its reporting and regulatory obligations.
  7. Record Retention: After dissolution, the company's records should be retained for a certain period, typically seven years, in case of any future legal or tax inquiries.


It is important to note that the specific steps and requirements for business dissolution in Texas may vary depending on the type of business entity (e.g., corporation, LLC, partnership) and the company's specific circumstances. It is advisable to consult with our business attorneys to ensure that the dissolution process is handled correctly and in compliance with Texas law.  Please contact Wilson Whitaker Rynell today to schedule a consultation.

The Need for Litigation in Business Divorces

Unfortunately, being in business with one or more persons can make business dissolutions complicated and contentious. Often, partners or members cannot reach an amicable settlement on how to wind-down the business, and that's where litigation becomes necessary. While Texas the law provides several mechanisms to address these disputes (discussed below), we typically find the following problems most often results in business dissolutions:


  • Valuation Disputes: One of the primary challenges in a business divorce is agreeing on the value of the business or its assets. This becomes even more complex if there are intangible assets, like intellectual property or goodwill. It is common for each party to have a different perception of the value, leading to disputes.
  • Unequal Contributions: In many business partnerships, one partner may have contributed more in terms of financial capital, while another might have brought in valuable connections or expertise. These unequal contributions can become a bone of contention when deciding how to divide assets or debts.
  • Role Ambiguity: Lack of clear roles and responsibilities can be a significant issue. When business partners have overlapping roles or undefined responsibilities, it can lead to friction and, ultimately, the need for a business divorce.
  • Emotional Attachment: Business divorces can be emotionally charged, especially if the partners have been working together for a long time. Personal grievances and hurt feelings can often get in the way of rational decision-making.
  • Non-compete Agreements: Many businesses have non-compete agreements in place, which can complicate a business divorce. These agreements may limit where and how the departing partner can work, adding another layer of complexity to the separation.
  • Ongoing Liabilities: A business may have ongoing liabilities, such as loans, that need to be addressed during a business divorce. Partners may disagree on how to handle these liabilities, leading to further disputes.


Moreover, litigation may be required if a business owner is alleged to have violated fiduciary duties, committed fraud, or engaged in other misconduct. The courts can provide remedies for aggrieved parties, such as ordering the return of misappropriated funds or enforcing non-compete agreements. Litigation also becomes necessary when there are third-party claims against the business, such as those made by creditors, which need to be resolved before the company can be dissolved. The need for litigation in business dissolution also arises in cases where there are regulatory or compliance issues that need to be addressed. The courts can oversee the process to ensure that all legal and regulatory requirements are met, protecting business owners from potential future liabilities. Overall, litigation provides a structured and impartial forum for resolving disputes and ensuring that the dissolution process is conducted according to the law. In Texas, the law provides several mechanisms to address these disputes.


  • Statutory Buyout: Under Texas law, when there is a deadlock among the directors or those in control of the company, a court may order a buyout of the departing partner's shares at fair market value. This can be a valuable tool for resolving disputes regarding valuation and division of assets.
  • Injunctive Relief: If one partner is acting in a manner that harms the business, the court may grant injunctive relief. This can prevent the partner from taking certain actions, protecting the business and other partners.
  • Judicial Dissolution: In extreme cases, the court may order the dissolution of the business. This is generally a last resort, used when the partners cannot agree on any other solution.
  • Expert Valuation: The court may appoint an independent expert to value the business, resolving disputes regarding valuation.
  • Alternative Dispute Resolution: Texas courts encourage the use of alternative dispute resolution methods like mediation and arbitration, which can be less adversarial and more cost-effective than litigation.


Experienced Dallas Attorneys for Business Dissolution

Navigating the complexities of business dissolution in Texas requires expert guidance. From resolving ownership disputes to ensuring compliance with state regulations, there's a lot to manage. That's where our Dallas business dissolution attorneys come in. Specializing in business dissolution litigation, the lawyers at Wilson Whitaker Rynell bring a wealth of experience and legal acumen to the table. Whether it's settling disagreements over asset distribution or handling third-party claims, they'll ensure a fair, legally compliant resolution. Protect your interests and avoid future liabilities by partnering with our Dallas attorneys skilled in business dissolution litigation.

A person is holding a cell phone in front of a book titled artificial intelligence
By John Wilson February 19, 2025
Copyright and Translated Content: Who Owns the Creative Rights? Understanding Copyright Law and Translation Copyright law protects creative work and bestows sole authority over the work upon the creators. For example, the owner of the work of a novel has the right over the work under the concept of the right under the copyright. Courts have found that “the degree of protection afforded by the copyright is measured by what is actually copyrightable in the publication and not by the entire publication.” See, e.g., Dorsey v. Old Sur. Life Ins. Co., 98 F.2d 872, 873 (10th Cir. 1938) (emphasis added). For translations, the situation is not very clear. Translations involve creative judgments over word translation and not the translation of mere words. Hence the knowledge about the applicability of the concept of the right over the work is essential for establishing the right over the work. For example, a Court in the Northern District of California stated that: “ the determinative question is whether Plaintiff holds a valid copyright. ” Signo Trading Intern. Ltd. v. Gordon, 535 F. Supp. 362, 363 (N.D. Cal. 1981). The Signo Trading Court dismissed Plaintiff’s infringement claims because plaintiff did not have a valid copyright as a matter of law in the translations and transliterations at issue because they lacked the “requisite originality.” Id. at 365. Can Translation Be Considered a Creative Process? The Practice of Translating Translation goes beyond the replacement of one word by the equivalent word from the source text. Translating literary work, poetry, and fiction with deeper meanings beyond the surface text is a complex, artistic process. Translating books like The Iliad, for instance, requires the practice of artistic translation to translate the emotions, thoughts, and the culture correctly. Technical Translations and Legal Translations Conversely, technical writing and texts for the law need less creativity and instead value correctness over all else. These writing forms require strict adherence to the original sense, leaving very little room for artistic interpretation. Translations for these writing forms thus typically involve less creative contribution and less potential for the work being protected by copyright. Why Is Creativity Important for Translations for Copyright? Originality when translating For a work to be subject to copyright, some creativity, however slight, is essential. Even when the translation is taken from the work, the translation also includes some creative work by the translator. This creativity can make the translation subject to copyright. A derivative work must “recast, transform[], or adapt[]” a preexisting work and “consist[] of editorial revisions, annotations, elaborations, or other modifications which, as a whole, represent an original work of authorship.” Id. In other words, it must change or alter the pre-existing work’s content and must itself be an original work of authorship. The Supreme Court stated that “ [t]he sine qua non of copyright is originality ” and that “ [t]o qualify for copyright protection, a work must be original to the author. ” Feist Publ’ns, Inc. v. Rural Tel. Serv. Co., Inc., 499 U.S. 340, 361 (1991) at 345. “Original, as the term is used in copyright, means only that the work was independently created by the author (as opposed to copied from other works), and that it possesses at least some minimal degree of creativity.” Id. (citing 1 M. Nimmer & D. Nimmer, Copyright §§ 2.01[A], [B] (1990)). In granting a Rule 12 motion to dismiss, the Signo Trading Court held that: " It is inconceivable that anyone could copyright a single word or a commonly used short phrase, in any language. It is also inconceivable that a valid copyright could be obtained for a phonetic spelling, using standard Roman letters, of such words or phrases. Although lists of words and translations of larger works may be copyrightable, Plaintiff cannot claim credit for any of the elements which make those things copyrightable. For these reasons, Plaintiff does not hold a valid copyright on the translations or transliterations ... " Signo Trading, 535 F. Supp. at 365. The Problem of the Derivative Work However, translations are generally "derivative works" - derived from the work of another. Because of this, the owner or author of the work is generally required to agree to the translation. Translations made illegally can be held under the classification of copyright violations, even when the translator has added creative elements. Who Has the Right over the Translated Work? Employer-Commissioned Translations Ownership of the copyright for the translation work varies. If the translation is commissioned by the owner of the original work, the owner will retain the right. Even when the translator adds creativity by passing over the original emotions and thoughts, the owner will not necessarily lose the right over the translation work. In some circumstances, the translation work can be accredited by the translator without them holding the right over the work. Independent Translations If a translation is performed independently by the translator, the translator can even be identified as the co-author of the translation. Nevertheless, the author typically has the underlying copyright, restricting the translator’s right over the work. Creative Translations from the Public Domain In certain cases, a translation may be creative enough to warrant its own copyright. For example, a translator adapting a classic work or a book in the public domain into modern language may introduce enough originality to qualify for copyright protection. However, direct, word-for-word translations are typically not considered original enough to receive new copyright protection. What About Machine Translations? The Human Creativity Copyright Requirement Machine-generated translations, including those produced by platforms like OpenAI , operate through advanced algorithms that replicate language patterns rather than capture the human touch. Unlike translations crafted by human translators who often infuse cultural insight and genuine emotion into the work, OpenAI's output is rooted in statistical patterns and data. Consequently, while these translations are impressively efficient and accurate, they typically fall short of the originality required for copyright protection. This distinction underscores the human creativity requirement needed to secure a valid copyright . Ultimately, although machine-generated translations serve as powerful tools, they do not offer the same legal and creative protections as those provided by human translators. The Bottom Line: Navigating Copyright in Translations Translations occupy the middle ground under the law of the copyright. Albeit the right of the original author generally has the right under the copyright, the right under the copyright can also be claimed by the translator provided the translation is creative enough. Central considerations here include the creativity the translator has added, the nature of the work being translated, and whether the work is under the public domain. These considerations establish the right of the owner under the copyright for the translation. Why Wilson Whitaker Rynell for Your Copyright Work? At Wilson Whitaker Rynell, our professional lawyers specialize in the practice of copyright law and copyright litigation , including the complex subject matter of translation work. We can provide you with advice about the ownership of your work under the provisions of the copyright, and protect your creative property. If you are the author, the publisher, or the translator, you can rely upon the advice from our firm. Copyright Translation FAQS
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Female Divorce Attorneys in the Dallas-Fort Worth Area In many instances, divorce cases are challenging and emotionally taxing experiences. For this reason, it’s common for people to prefer working with an attorney of the same gender because they feel as though the attorney can empathize and understand their situation more. At the end of the day, the gender of your attorney may not affect the outcome of your case, but it’s important to feel as comfortable as possible while navigating through the process. At Wilson Whitaker Rynell, our experienced female divorce attorneys offer compassionate and empathetic approaches while they develop a comprehensive legal strategy to represent you. Why Should You Choose a Female Divorce Lawyer? There are many reasons why hiring a female divorce attorney can help you throughout your divorce. For one, they often have experience working on issues that disproportionately affect women in divorce such as spousal support (alimony), child custody disputes, and asset division. Additionally, female divorce lawyers offer a unique level of empathy, understanding, and communication. As a result, many clients feel that they are more approachable and compassionate, which is beneficial when dealing with the emotional turmoil of the process. More importantly, female divorce attorneys are more familiar with how the court treats women in divorce cases and use this knowledge to strategically protect their clients’ interests, whether male or female. Why Our Female Divorce Attorneys May be Right for You At Wilson Whitaker Rynell, our female divorce attorneys are skilled, knowledgeable professionals, they also have many years of experience in handling complex divorce cases. Whether it’s issues surrounding custody of children, alimony, or asset division, our female divorce lawyers ensure each client receives high-quality legal advice. Our firm’s female divorce attorneys provide the highest level of personal attention, ensuring that each client’s unique needs and concerns are addressed through every step. Unique Challenges Women Face in Family Law Disputes in Texas Family law disputes can be emotionally charged and legally complex, especially for women navigating the process in Texas. Women often encounter unique challenges due to their roles in the marriage and family dynamic, particularly when it comes to child custody, child support, and the division of marital assets. Child Custody Challenges In many marriages, women take on the primary caregiving role for their children. However, when it comes to custody decisions, courts in Texas prioritize the best interests of the child over parental gender. While this often works in favor of mothers, women may still face hurdles in proving they are better suited to provide the stable environment the child needs, especially if their ex-spouse disputes custody. Factors such as work schedules, living arrangements, and financial stability can come under scrutiny. Child Support Issues While Texas law allows women to seek child support, collecting these payments can sometimes prove difficult. Women awarded child support may find themselves dealing with ex-spouses who delay payments, make partial payments, or refuse to pay altogether. Enforcing child support orders often requires legal intervention, which can add to the emotional and financial strain. Division of Marital Assets In Texas, a community property state, marital assets are typically divided equitably during divorce. Women who are awarded assets such as the family home may face challenges related to maintaining the property, refinancing a mortgage, or covering associated expenses. Additionally, women who sacrificed their careers to support their spouses or raise children may feel disadvantaged during the division of assets if their earning potential is limited compared to their ex-spouse. How Your Divorce Attorney Will Support You Each divorce case is unique, and having an experienced attorney standing by you is vital. Whether you’re dividing assets, negotiating child custody, or managing other complex legal issues, the female divorce attorneys at Wilson Whitaker Rynell are here to protect the interests of you and your family. Our attorneys will take the time to understand your unique circumstances and empower you to make informed decisions that support your career, family and future. When you choose a female divorce attorney from Wilson Whitaker Rynell, you can trust that they will: Prioritize your family’s best interests. Negotiate with integrity, ensuring fairness and transparency. Clearly explain all your options and their potential outcomes. Help you create the future you want by offering trusted legal advice. Use efficient methods to minimize unnecessary costs and keep the process manageable. Navigating family law disputes requires a thorough understanding of Texas family law and strong advocacy. Women facing divorce or other family law issues are encouraged to seek an experienced family law attorney who can provide personalized guidance. A skilled lawyer can help craft a strategy that protects their rights and ensures a fair resolution. This includes representing their interests in court, negotiating settlements, and helping enforce orders such as child support or spousal maintenance.
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By John Wilson January 23, 2025
Understanding Writs of Execution in Texas: A Layperson’s Guide If a court determines that someone owes money to another party, the debtor—referred to as the "judgment debtor"—typically has 30 days to pay off the debt. If the debt remains unpaid after this time, the creditor, or "judgment creditor," can take legal action to enforce the payment through a Writ of Execution . This legal process, governed by Texas law, enables creditors to collect what they are owed by seizing and selling the debtor’s non-exempt assets. What Is a Writ of Execution? Under Texas Rules of Civil Procedure 629 , a Writ of Execution is a court order that authorizes a sheriff or constable to seize the debtor’s property to satisfy the debt. This writ is an essential tool for creditors when voluntary repayment has not occurred. Once the writ is issued, it is handed over to a county constable or sheriff, who is required to act “without delay” in collecting the debtor’s real and personal property. The seized property is then sold, and the proceeds are used to pay off the debt. If multiple writs are filed against the same debtor, the assets are distributed in the order the writs were received. What Property Can Be Seized Under a Writ of Execution? Texas law is very specific about which types of property can and cannot be seized to satisfy a judgment. Exempt Property Certain assets are protected from seizure under Texas Property Code § 41.001. These include: The debtor’s homestead (primary residence) Wages earned from employment Professionally prescribed health aids Workers’ compensation benefits College savings plans Some insurance benefits Personal property valued up to $50,000 for individuals and $100,000 for families Unique to Texas, the law also protects items like family Bibles, two firearms, pets, and for rural residents, livestock (e.g., 12 head of cattle and 120 fowl). This extensive list reflects Texas's cultural heritage and values. Non-Exempt Property Assets that are generally not exempt include: Vacation homes Timeshares Pleasure boats Airplanes Jewelry exceeding certain value thresholds The specific procedures for seizing different types of property are detailed in Texas Rules of Civil Procedure 639 . Can a Writ of Execution Be Avoided? Judgment debtors have a few options to avoid the execution of a writ: Filing a Supersedeas Bond A supersedeas bond can temporarily halt enforcement of the writ. This bond, filed with the county clerk or justice of the peace, preserves the status quo while the debtor seeks further legal remedies. This option is governed by Texas Rules of Civil Procedure 634 . Challenging the Execution Debtors can file a claim for wrongful execution in situations such as: The debt has already been paid Exempt property is being seized The levy is excessive Additionally, courts take extra care to protect property classified as a homestead under Texas Property Code § 41.002(c) . When only one spouse is responsible for the debt, Texas Family Code § 3.202(a) and related provisions provide guidance on levying against community or separate property. The Role of County Officials in Executing the Writ Once the writ is issued, its enforcement falls on county officials, typically a sheriff or constable. These officials must act in accordance with Civ. Prac. & Rem. Code § 34.072 , which requires them to execute the writ and report back to the court. They must: Give proper notice of the sale of seized property Ensure the proceeds are appropriately delivered to the creditor Avoid overstepping legal boundaries, such as seizing exempt property Failing to execute the writ properly can result in serious consequences, where a sheriff’s refusal to levy on a property initially listed as exempt (but later deemed abandoned) led to court action and damages awarded to the creditor. Preventing Fraudulent Transfers One challenge creditors face is when debtors attempt to hide or transfer assets to avoid collection. To address this, Texas follows the Uniform Fraudulent Transfer Act under Tex. Bus. & Comm. Code § 24.001 et seq .. This act provides legal remedies to creditors when a debtor’s transfer of assets is deemed fraudulent. Effect of a Defendant's Death on Writs of Execution Under Civ. Prac. & Rem. Code § 34.072 , the death of a defendant after a writ of execution is issued halts execution proceedings. However, any lien acquired from the writ's levy is still enforceable by the county court when paying off the deceased's debts. Why Proper Execution Of The Writ Is Crucial The rules for filing and serving a Writ of Execution are strict and detailed. Missteps, such as filing the writ in the wrong county, failing to serve the proper parties, or missing key deadlines, can lead to delays or even render the writ ineffective. Both creditors and debtors must ensure compliance with these rules to avoid unnecessary complications. For creditors, failure to properly enforce the writ could mean losing the opportunity to collect on a judgment. For debtors, not responding appropriately to a writ could result in the loss of valuable assets, even those that might have been exempt.
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The Wilson Legal Group are Dallas attorneys that specializes in Patents, Trademarks, Copyrights, Trade Secrets, Complex Litigation, Business/Corporate Law, Family Law and Real Estate Law. At the Wilson Legal Group, our clients are our focus. Our philosophy is simple and straight-forward: Understand our clients' needs, hopes, and interests in order to help them flourish. Our staff strives to build strong relationships with our clients in order to appreciate their best interests and help them achieve their goals.

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