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Texas Business Law Questions & Answers
1 Answer | Asked in Business Formation, Business Law and Real Estate Law for Texas on
Q: Can a tenant pierce the corporate veil of my Texas LLC?

I have a single-member LLC in Texas that owns a rental property. The LLC has a separate bank account where rent is collected and expenses are paid. However, the mortgage and property insurance are in my name, with the LLC listed as an additional insured on the insurance. I'm the managing... View More

John Michael Frick
John Michael Frick
answered on May 28, 2025

You have already taken the most effective step by holding the rental property in an LLC instead of in your individual name. It is hard to pierce the company veil in Texas. Merely holding the mortgage and insurance in your individual name is not dispositive. A plaintiff would have to prove that... View More

2 Answers | Asked in Divorce, Family Law, Real Estate Law, Business Formation and Business Law for Texas on
Q: Is inherited asset purchased property considered separate, or must it be split in divorce?

I am in the process of getting a divorce in Texas. After getting married in the Netherlands, I inherited a large sum of money from my mother in June 2019, which I used to purchase a house and a business. Both properties are jointly titled in my wife's and my name, which I did because I wanted... View More

Steven Buitron
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answered on May 25, 2025

The money you inherited was originally your separate property. But when you used it to buy a house and a business and then put both in your and your wife’s names, the law assumes you meant to give her half.

Because of that, the court will probably treat both the house and the business as...
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2 Answers | Asked in Divorce, Family Law, Real Estate Law, Business Formation and Business Law for Texas on
Q: Is inherited asset purchased property considered separate, or must it be split in divorce?

I am in the process of getting a divorce in Texas. After getting married in the Netherlands, I inherited a large sum of money from my mother in June 2019, which I used to purchase a house and a business. Both properties are jointly titled in my wife's and my name, which I did because I wanted... View More

John Herbig
John Herbig pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
answered on May 28, 2025

Your inheritance would be considered separate property, and had you bought a house with that money and not put it in your spouses name, it would more than likely have remained your separate property, but once you put the home and business in both of your names, the Court will more than likely... View More

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2 Answers | Asked in Landlord - Tenant, Business Law and Real Estate Law for Texas on
Q: Who repairs water-damaged breaker box from landlord's leaking roof?

As a tenant operating a business in a leased commercial space, water damage occurred to our electrical breaker box due to a leaking roof, which is the landlord’s responsibility. We notified the landlord, who referred us to the maintenance person. Our lease states that we are responsible for... View More

John Michael Frick
John Michael Frick
answered on May 9, 2025

The answer to your question depends on the exact language of your lease agreement and possibly local ordinances where the premises are located. It is very important to read and understand the lease as a whole, and not to focus on single paragraphs or sections of the leases.

It is extremely...
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2 Answers | Asked in Business Law and Contracts for Texas on
Q: Am I liable for previous debts if added to a sole proprietorship's assumed name certificate after being an employee?

I am currently named on an assumed name certificate for a sole proprietorship. However, prior to this, I was merely an employee of the business and did not sign any agreements or contracts regarding the company's debts. Am I liable for any previous debts of the company?

John Michael Frick
John Michael Frick
answered on Apr 29, 2025

A sole proprietorship (i.e. a d/b/a) is not a separate and distinct legal entity from the natural person who is the owner of the assumed name. It is a natural person (i.e. the sole proprietor) conducting business under an assumed name. So there is no "company" or "company... View More

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2 Answers | Asked in Landlord - Tenant, Civil Litigation, Business Law and Real Estate Law for Texas on
Q: Seeking legal guidance on property management negligence causing $20,000 loss.

I own a rental property in Texas, and my property management company was negligent in screening tenants and maintaining the property. The tenant who signed the lease allowed multiple families to live in the house. Despite repeated complaints and monthly HOA violations, the management company failed... View More

John Michael Frick
John Michael Frick
answered on Apr 9, 2025

The success of your case will turn heavily on the language of your agreement with your property management company and the particular facts and circumstances of your case. You will need to prove how the management company knew or should have know that the tenant who signed the lease was likely to... View More

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2 Answers | Asked in Divorce, Business Law, Contracts and Family Law for Texas on
Q: Credit union refuses divorce decree, loan in ex-husband's name for awarded vehicle. Can I return it?

I was awarded a vehicle in my divorce, but the credit union refuses to acknowledge the divorce decree, stating the loan and title remain in my ex-husband’s name. They will not allow refinancing in my name, affecting my ability to register the vehicle. I’ve considered returning the vehicle to... View More

John Michael Frick
John Michael Frick
answered on Apr 3, 2025

If the loan is solely in your ex-husband's name and the divorce court did not order to pay the loan and to hold your husband harmless from any failure to pay the loan, then your ex-husband remains liable on the loan. In addition, the vehicle remains collateral for the repayment of the loan.... View More

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2 Answers | Asked in Contracts and Business Law for Texas on
Q: How should I handle contract termination due to unexpected cost increases and client requests?

I had a contract to build 15 straight stairs using white oak materials. The client originally agreed to this, but the cost of white oak increased unexpectedly right before purchasing the materials. Despite this, I decided to honor the original estimate and start the project, even though it was... View More

John Michael Frick
John Michael Frick
answered on Apr 2, 2025

You cannot terminate the contract due to the increased cost of materials unless the contract language expressly gives you that right.

You also cannot terminate the original contract due to requests from your customer for additional work, although you are not required to agree to the...
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Q: Can non-U.S. residents wholesale real estate in Texas and receive assignment fees abroad?

I live abroad and I'm interested in wholesaling real estate in Texas. Is it possible for non-U.S. residents to engage in this business? What kind of paperwork or legal requirements should I be aware of? Additionally, there may be situations where I enter into joint ventures (JVs) with other... View More

John Cucci Jr.
John Cucci Jr.
answered on Apr 1, 2025

Most non-US citizens can buy and sell land and otherwise speculate on the same. However, if you are a Chinese National, or are from a "Terrorist State" country, that type of business is NOT available for you in Texas.

The key is to manage your properties and taxes correctly. Get...
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2 Answers | Asked in Employment Law, Mergers & Acquisitions, Contracts and Business Law for Texas on
Q: Are the new company owners obligated to uphold my truck allowance agreement after a merger?

I work for a company that recently merged with another company. Three years ago, I signed an employee agreement that provides a weekly truck allowance, maintenance costs, and a fuel card for using my personal vehicle for work. The company taking over is attempting to remove these benefits without... View More

John Michael Frick
John Michael Frick
answered on Mar 31, 2025

The parties almost always can modify a previous agreement if they both mutually agree to the modification. If the parties do not agree, it depends upon what the original agreement provides whether one party can unilaterally modify the agreement. If there is nothing that gives the company the... View More

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2 Answers | Asked in Business Formation, Land Use & Zoning and Business Law for Texas on
Q: Do I need a permit to operate a pet food vending machine in Dallas, TX?

I am planning to operate a vending machine selling pet food in both indoor and outdoor locations in Dallas, Texas. I am unaware of any local business regulations or zoning laws related to vending machines. Do I need a permit for this?

John Michael Frick
John Michael Frick
answered on Mar 17, 2025

Operating a vending machine business requires compliance with various laws. In general, the operator of a vending machine requires a license from the State of Texas to operate such a business. Cities and counties regulate where commercial business are allowed to operate through zoning laws and... View More

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2 Answers | Asked in Contracts, Probate and Business Law for Texas on
Q: Probate advance company not fulfilling payment obligations.

I was approved for a loan by a probate advance company, but they've only sent one payment and haven't fulfilled the rest of the payments as promised. They've stopped responding to my emails and calls. I have the loan agreement and written communication. What steps can I take to resolve this issue?

John Michael Frick
John Michael Frick
answered on Mar 15, 2025

You can sue the lender for breach of contract. Check your loan agreement to see if you agreed to mediation, arbitration, or a particular forum for the resolution of your dispute. These type of provisions are common in such loan agreements and are almost always enforceable.

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2 Answers | Asked in Business Law, Employment Law, International Law and Internet Law for Texas on
Q: Can I sell $500,000 in cell phones for cash to an undocumented buyer?

I run a cell phone business and recently had a buyer ask to purchase $500,000 worth of cell phones in cash. The buyer is undocumented and wants the phones shipped to California. Am I allowed to proceed with this transaction, and are there any legal restrictions or reporting requirements I should be... View More

John Michael Frick
John Michael Frick
answered on Mar 6, 2025

I have a feeling that somebody wants to replicate what Mossad did to Hamas, but I don't have the answer to your legal question. This is a sufficiently odd transaction, there may not be an answer as it may implicate the laws of other nations and any advice might require knowledge of what and... View More

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1 Answer | Asked in Criminal Law, Business Law and Contracts for Texas on
Q: Have I committed a crime by using a business credit card for unauthorized purchases?

I've been using a business credit card issued by a pool technician company for pool-related expenses and gas for my truck. I ended up purchasing retail items and food from grocery stores and restaurants, which were not authorized. The employer verbally mentioned the card's intended usage... View More

John Michael Frick
John Michael Frick
answered on Mar 3, 2025

You should immediately repay any unauthorized charges in full to avoid being charged with a crime. Legally, the question is did you exceed the authority given to you by the company to use the company credit card. "Purchasing retail items and food from grocery stores and restaurants"... View More

1 Answer | Asked in Business Law and Real Estate Law for Texas on
Q: How to remove my name from a co-signed mortgage in Texas?

I co-signed a mortgage with my daughter for her house, but due to health issues, I now reside in a nursing home and likely will for life. I want to remove my name from the mortgage without causing financial hardship for her. We haven't yet explored refinancing or contacted the lender. How can... View More

John Michael Frick
John Michael Frick
answered on Feb 24, 2025

Probably refinancing the mortgage with a new lender in her sole name is your best bet. The alternative is to try to persuade the current mortgage company to release you, which is not in that company's best interest. But, legally, that company cannot object if it is paid off by a new company... View More

1 Answer | Asked in Business Law, Contracts and Employment Law for Texas on
Q: Handling conflict of interest with two competitor employers in hospitality industry in Texas.

I work in the hospitality industry and have accepted two jobs with different companies. My first job is with a large hotel chain where I work as a sales manager at the property level. The second job, which I haven't started yet, is with another chain for a business development role focused on... View More

John Michael Frick
John Michael Frick
answered on Feb 19, 2025

Even in the absence of a written agreement, an employee is an agent of his employer, the principal, and as an agent owes certain fiduciary duties to the employer. Among these is the fiduciary duty of loyalty which would preclude the employee from working for a competitor without the... View More

1 Answer | Asked in Contracts and Business Law for Texas on
Q: Consulting for employer through LLC while under non-compete in TX?

I am currently employed as a venue manager by a wedding venue in the wedding and event planning industry. I signed a non-compete agreement that states I will solely work for the company and not engage in wedding coordination or planning for other venues while employed. I also own an LLC from a... View More

John Michael Frick
John Michael Frick
answered on Feb 14, 2025

You actually have two issues.

First, the language of your non-compete will determine whether your proposed consulting work through your own LLC violates your agreement with your employer. Most non-complete agreements would prohibit such work.

Second, you appear to also have an...
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2 Answers | Asked in Landlord - Tenant, Criminal Law, Real Estate Law and Business Law for Texas on
Q: We rented a space to someone on our storage facility. He began living in the space & we allowed it but now want him gone

We own the 15-acre facility & pay taxes every year. Due to his financial situation, we allowed him to stay & work in lieu of rent. Nothing in writing was ever done about this arrangement, all verbal. He's using his truck & camper shell to live in behind our office. Last Friday,... View More

John Michael Frick
John Michael Frick
answered on Jan 23, 2025

Because there is no agreement to pay rent, you must give him 30-days advance written notice to vacate for the reasons stated in your question. If he fails to surrender possession of the premises to you after 30 days, you must file an eviction suit in the justice of peace for the precinct where the... View More

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1 Answer | Asked in Business Formation and Business Law for Texas on
Q: My lawyer has been hospitalized. I need my corporate binder. Brother has the binder. Can he return it to me?

My lawyer has my company’s corporate binder in his house. He recently had an accident leaving him hospitalized for the past 6-7 weeks. He’s 79 years old and has been a family friend (and lawyer) for years. His brother (who I speak with regularly) has located the binder but wants to make sure... View More

John Michael Frick
John Michael Frick
answered on Jan 8, 2025

The person named as the "secretary" of the corporation has the legal obligation to maintain the official records formerly customarily kept in a corporate binder. If you are the corporate secretary and hired the lawyer to keep the binder, you have right to demand it regardless of whether... View More

2 Answers | Asked in Business Law, Construction Law, Contracts and Real Estate Law for Texas on
Q: We bought a mobile home on a 25 year contract, but it is not structurally what they told us it would be. Lawsuit?

Can a mobile home manufacturer sell me a house on false pretenses? The manufacturer told us on the phone with the sales person that all studs on the interior of the home would be on 6” centers. That’s not the case. There are 24” centers in the entire inside of the double wide mobile home.... View More

John Michael Frick
John Michael Frick
answered on Jan 2, 2025

Your rights will depend heavily on your sales contract, warranty, and other written documentation. It would be extremely unusual to be able to enforce a verbal conversation with a sales representative that substantially varies from the contents of those documents.

That being said, most...
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