Wilson Whitaker Rynell

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972-248-8080 DALLAS
713-830-2207 HOUSTON
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

CORPORATE FORMATION IN TEXAS

Attorneys in Dallas, Texas

Choosing the correct business form can save a business from overpaying taxes and from personal liability.  Our Dallas business lawyers help business owners select, form, and start businesses.

FORMATION OF A CORPORATION OR INCORPORATED ENTITY

What Is A Corporation?

A corporation is a legal entity that is separate and distinct from its owners and has the contractual rights of an individual.  For instance, corporations can enter into contracts, borrow money, secure loans, sue and be sued, hire employees, own assets, and pay taxes.  A corporation can be created by a single shareholder or by multiple shareholders, and it can be either for profit or charitable.  The creation of a corporation involves a legal process called incorporation, where legal documents such as articles of organization or articles of incorporation are filed stating the primary purpose of the business, name, and location, and the number of shares and types of stock issued. 


What Are The Steps Necessary To Form A Corporation?

The corporate formation is governed by the laws of the state in which the corporation is formed.  Certain states provide various tax advantages.  For instance, and similar to Texas, businesses that are formed in Delaware but do not conduct business there do not need to pay state corporate income tax, and corporate stock owned by individuals outside of Delaware is not taxed.  Both Delaware and Texas require a yearly franchise tax on earnings if a certain threshold is met.  The steps to filing a corporation in Texas with the Texas Secretary of State include the following:

 

  • Choose a name for your corporation;

 

  • File Articles of Organization with the Texas Secretary of State; 

 

  • Select and appoint a registered agent;

 

  • Prepare corporate bylaws;

 

  • Appoint directors;

 

  • Establish the first meeting of the directors;

 

  • Issue stock to owners; and 

 

  • Confirm compliance with tax and regulatory agencies.

 

Your corporation's name must i) contain one of the following words: “Incorporated,” “Corporation,” “Company,” “Limited,” or the abbreviation “Corp.,” “Inc.,” “Co.,” or “Ltd.;” and (ii) must not have already been chosen by and incorporated or formed with the Texas Secretary of State.  Importantly, all certificates of formation must include (i) the corporate name; (ii) the name and address of the agent for service of process; (iii) the name and address of the initial directors; (iv) the number of shares the corporation is authorized to issue and whether they have a par value or no par value; (v) the name and address of the organizer; and (vi) the effective date of the certificate.


What Are Corporate Bylaws?

Corporate bylaws are a document that sets forth the basic ground rules for operating a corporation. Although not filed with the state and not legally required, most banks, creditors, the IRS, and others use bylaws to assure that your corporation has a proper management structure and internal controls. Our business attorneys can advise you on a wide range of legal matters, including corporate law, contract law, copyright registration, trademark registration, mergers and acquisitions, corporate governance, and litigation. In addition to establishing and maintaining corporate bylaws, it is important each new corporation must understand and obtain the following:

 

  • Employer Identification Number (EIN) Registration:  Upon forming your company, you must promptly secure an EIN from the IRS to open bank accounts and file tax returns.

 

  • Initial Sub-"S" Tax Elections:  In order to avoid taxation at both the corporate and personal level, all shareholders of a newly formed corporation must file Form 2552 Election by a Small Business Corporation within the time frame allowed by the IRS (approximately 45 days).

 

  • Acquire All Necessary Business Licenses :  In each state in which the corporation operates, it is essential to check with state and local law to determine if any special permits or filings are required to operate within that state's jurisdiction (e.g., alcoholic & spirit beverage licenses).

 

  • Register With Your State :  In Texas, all corporations are required to register with the Texas Comptroller of Public Accounts and, if necessary, pay Texas franchise taxes when income exceeds $1 million in annual revenue.

 

At Wilson Legal Group, our business lawyers utilize a team-based approach with access to multiple attorneys with substantive years of experience in many practice areas. Whatever your corporate services needs may be, our business attorneys have the talent, resources, and expertise to meet them in an efficient, timely, and cost-effective manner.


Does Registering A Company Guarantee Me A Trademark In The Company Name? 

No, filing and securing a corporate name with the Texas Secretary of State does not guarantee you the right to use that corporate name in commerce, even if that name is allowed and the state accepts your articles of origination. Unless you register your name as a trademark, it can be difficult to maintain and enforce your company's rights to its name. If you wish to protect and enforce your company's name, you need to register the trademark with the United States Patent and Trademark Office (USPTO) by filing a trademark application. Our attorneys can assist you with all business needs, including filing a trademark for your corporate name, preparing your bylaws, and filing articles of organization for your company.


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Additional Business Focus 

What Is A Registered Agent?

The registered agent is not the corporation but the person or entity who would receive service of process on the corporation’s behalf in the event of a lawsuit or other formal notice. For example, a registered agent can be a person or an agency in Texas with a physical street address where the registered agent can be contacted during business hours.  Post office boxes are not acceptable for a registered agent and will not be accepted by the State of Texas.


Do Foreign Corporations Need To Register To Do Business In Texas?

All corporations organized outside of Texas must i) register with the Texas Secretary of State before doing business in Texas, and ii) must appoint a registered agent for service of process within the State of Texas. We know that starting a business or maintaining an existing business may be one of the most challenging and rewarding things you’ll ever do. We know you bring the passion and skill to start and build a business. Our business attorneys can help you understand the legal requirements of running your business in a complex and competitive corporate environment.


C Corporation & S  Corporation Comparison Chart:

COMPARE C CORPORAITON S CORPORATION
Tax C Corporation is subject to double taxation, once at the business entity level and then again at the shareholder level. S Corporation income is taxed once at shareholder level through a Schedule K-1.
Ownership C Corporations may have foreign investors, and no limits on shareholders. S Corporations may not have foreign investors and can only have up to 100 shareholders.
Shareholder Rights C Corporation shareholders can receive preferred stock, with or without voting rights, and potential dividends. S Corporation can only issue common stock with voting rights, and all shareholders are treated equally.

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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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By John Wilson February 12, 2025
Strategic Legal Representation for Complex Business Litigation
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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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