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Texas Business Organizations Code An Overview

by Sourav
Texas Business Organizations Code

Texas Business Organizations Code is the main legal text by which business corporations and LLCs must abide to register and do business in the State of Texas. This code governs all corporations, LLCs, partnerships, and sole proprietorships. Each of these categories has its specific laws and rules under which it operates. Thus, businesses must become fully aware of all the laws that apply in each category.
Under the Texas Business Organizations Code, all corporations and LLCs are obligated to dissolve when they fail to meet their obligations. If the business is not dissolved upon cessation of business, the members retain ownership of the business. Texas Business Organizations Code Section 1.2. Duty of Debt Collection: The obligation of debt collection is an obligation of a creditor for the recovery of debts owed to him by a debtor. In Texas, an owner of a corporation or an LLC is liable for the payment of debts owed to him by the corporation or LLC. An owner may, however, have the right to settle or pay in a court of law an unincorporated business.
This article is designed to be an informative resource about Texas Business Organizations Code. It is not legal advice. This article is not intended to resolve any legal issues and is not intended to provide, diagnose or treat any disease. Consult your physician for your medical concerns.
The Texas Uniform Trade Laws allow for freedom of contract. Contracts between Texas business entities are enforceable by Texas law through Article XX of the Texas General Laws. One important provision of that code is the January Submission Period. The period is required for most acquisitions and dispositions of tax-exempt securities.
One of the fundamental business transactions covered in the Texas Uniform Trade Laws is the Offshore Trading of Securities. There are several reasons for which a foreign entity may wish to open a trading account in the Republic of Texas. Some foreign entities may choose to do so for regulatory considerations. Regulators in some foreign countries may penalize companies or entities with less than registered foreign trade securities. A foreign entity may desire to take advantage of a low tax rate. To facilitate this, the Texas Department of Corporations & Registration has published a foreign filing entity report.
One of the other reasons for foreign filing entities to seek registration in the State of Texas is that the Lone Star State offers a generally more conducive environment for doing business. Regulation of corporations and limited liability companies in the state is more effective. A person who has been granted registration may, therefore, reap the benefits of having favorable treatment on the books of commerce in various trade shows held throughout the Lone Star State. Foreign filing entities may also have better access to banking relationships, a necessary prerequisite for facilitating trade in the Lone Star State.
Foreign filing entities will be required to pay an application fee before being able to file for a certificate of Registration of Business. This cost is in addition to the standard filing fees in all states. This does not mean that a foreign entity will be permitted to skip the filing fees altogether. It is recommended that such a person consults with a competent lawyer before taking any action.
No matter which state a foreign entity chooses to establish its registration, it is important that the legal structure is following Texas law. The Texas Limited Liability Company Code provides the basic structure for these formations. Every state has its unique taxation system. Every business filing entity must comply with the state tax law to register. The Texas Business Organizations Code also covers all matters related to the formation of limited liability companies.

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