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972-248-8080 DALLAS
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512-691-4100 AUSTIN
wilson whitaker rynell attorneys and counselors at law logo
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 Partnerships: A Good Idea or A Trap for the Unwary?

Jennifer M. Rynell • June 21, 2024

Navigating Texas Partnership Laws: Key Considerations and Legal Guidance

Exploring Side Gigs and Partnerships in Texas

In this current financial climate where many are feeling the pinch of rising costs everywhere, have you ever considered a “side gig” or a “side hustle” to supplement your income? Have you ever decided with a friend or family member to sell items and/or services together? 


“Together” is the key! As soon as you decide to begin selling goods and/or services for profit, you have likely created a partnership under Texas law that is automatically subject to certain rules and regulations. You do not have to intend to create a formal, legal partnership or sign/file any documents with the state for the Texas default rules to apply. See Texas Business Organizations Code Sec. 152.051(b)(1).


It starts out so well… you are the best of friends… the closest of siblings or relatives. But suddenly a dispute of some kind arises between you, relating to the business or not. You find yourself in a situation where you don’t want to be in business together anymore. What happens to the business if you cannot agree amongst yourselves? You may need to retain the services of an attorney to assist you in unraveling the mess.


Identifying a Partnership Under Texas Law

In resolving business disputes for informally created businesses, the question will likely arise: Have you created a “partnership” that is governed by Texas law? There is a list of factors that determine whether you have created a partnership with your business partner. The factors that will be analyzed in determining whether you and another person or persons have created a partnership will depend on the answers to the following questions, for example:


  • Have you received a share of the profits of the business?

Receiving a share of the profits is a strong indicator of partnership. It suggests that you are entitled to a portion of the net earnings of the business, which is a key characteristic of a partnership.

  • Do you have a right to receive a share of the profits of the business?

Even if you haven't yet received profits, having the right to receive them in the future is significant. It can reflect an agreement or understanding that your efforts, investments, or involvement in the business entitles you to future profits.

  • Did you express an intent to the other person(s) to be partners in the business?

Expressing intent to be partners is crucial in establishing a partnership. This can be verbal, written, or implied through actions. Clear communication IN WRITING of this intent – or lack thereof - helps avoid misunderstandings later. 

  • Have you participated in control of the business?

Participation in control refers to being involved in decision-making processes and operational or management activities. This includes actually making decisions regarding business operations, strategies, policies or actively running the business. 

  • Do you have a right to participate in the control of the business?

Having the right to participate in control, even if you choose not to exercise it regularly or even at all, can signify a partnership. If you have the right to participate in decision-making, you can be found to be a partner, sharing in both the benefits and responsibilities of running the business.

  • Do you have an agreement to share or are you sharing losses and liabilities of the business?

Sharing losses and liabilities is a critical aspect of partnerships. It demonstrates a willingness to bear financial risks alongside the potential rewards. This can manifest in many ways, including for example co-signing on a lease agreement for the space in which a business operates or jointly signing for a loan or line of credit relating to the business. 

  • Have you contributed money or property to the business? Or have you agreed to?

Contributing money or property shows you have a vested interest in and have made a financial commitment to the business. It is an important factor in showing that you are working with another party toward a common goal.


Should you find yourself needing the assistance of an attorney in the creation of a business or in the resolution of a dispute, we would be happy to consult with you on possible representation. 


If you get to the point where you are debating whether the above factors apply to your current situation, you may be in a legal dispute or a lawsuit! 


Types of Evidence in Partnership Disputes

In addition to the factors above, documents and evidence that may be reviewed in analyzing whether a partnership exists can include simple, everyday communications such as: 


  • Text messages

Text messages can serve as crucial evidence of partnership. They often contain informal conversations where parties may discuss business plans, share profits, divide responsibilities, or make decisions together. Reviewing text messages can reveal:

  • Discussions about profit-sharing arrangements: Indicating financial agreements typical of partnerships.
  • Decision-making processes: Showing collaborative control over business operations.
  • Expressions of intent: Direct statements about being partners or working together.


  • Emails

Emails provide a more formalized record of communication. They can include detailed discussions on business strategies, financial agreements, and operational plans. Key points to look for in emails include:

  • Agreements on business terms: Such as contracts, profit-sharing, or liability distribution.
  • Evidence of contributions: Discussions about investing money or property into the business.
  • Intent and acknowledgment: Clear expressions of intent to form a partnership or references to each other as partners.


  • Communications exchanged on social media messaging applications

Social media messaging applications (e.g., WhatsApp, Facebook Messenger) often blend personal and professional communication. These messages can show:

  • Informal agreements: Casual discussions that still reveal partnership dynamics.
  • Collaborative efforts: Planning and executing business activities together.
  • Social proofs: Comments and reactions that may confirm the business relationship to external parties.


  • Social media posts

Posts on platforms like Facebook, Twitter, LinkedIn, or Instagram can provide public-facing evidence of a partnership. This includes:

  • Announcements: Public declarations about starting or running a business together.
  • Tagging and mentions: Associating each other in business-related posts.
  • Engagements: Interactions on posts that involve business activities, indicating a shared venture.


  • Testimony of people who may have overheard conversations between you and your business “partner.”

The testimony of people who may have overheard conversations or observed interactions between you and your business "partner" can be compelling evidence. This can include:

  • Direct observations: Witnesses recounting discussions about forming or running a business together.
  • Behavioral evidence: Descriptions of how the parties interacted, shared responsibilities, or presented themselves as partners.
  • Third-party validations: Testimonies that corroborate the existence of a partnership through observed actions and statements.


Key Lessons for Business Relationships

The lessons I have learned as a business law attorney from years of handling business disputes are that:

  • From the BEGINNING of any business relationship between you and another person/group, you must take into consideration any laws that may apply to your situation; 



  • The business relationship should be properly documented to reflect the understandings of the parties involved and how any possible future disputes will be handled and resolved; and  


  • Obtaining the advice and guidance of an attorney on these matters at the outset of starting a business is much less expensive than if you find yourself in a dispute or lawsuit later.  



Texas Partnership Law Attorneys

Should you find yourself needing the assistance of an partnership attorney in the creation of a business or in the resolution of a dispute, we would be happy to consult with you on possible representation. 


Wilson Whitaker Rynell assists clients in Dallas, Houston, Austin, and the rest of Texas in helping businesses and individuals create and litigate partnerships. We have successfully helped clients in Plano, Frisco, Addison, Richardson, Fort Worth, Irving, Carrollton, Taylor, Dallas County, Denton County, Collin County protect and form their partnerships.


Contact Us or Call 972-248-8080 for a Free Consultation!


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.
A man riding a horse with a bull behind him
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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