Wilson Whitaker Rynell

Experienced Lawyers

info@wwrlegal.com

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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
a blue and orange check mark with the letter w on it as the Wilson Whitaker Rynell Logo

Thinking About Moving to Texas but Have a Business? Bring it With You!

Chelsea Lankford • Apr 08, 2024

Transferring a Foreign Limited Liability Company (LLC) to the State of Texas 

Moving your Limited Liability Company (LLC) to Texas can offer numerous advantages due to the state's robust pro-business climate. Texas is renowned for its absence of a state income tax, a benefit that extends to individual members of LLCs, potentially reducing the overall tax burden compared to states with higher personal income taxes. This factor alone makes Texas an attractive option for entrepreneurs looking to maximize their earnings. Beyond tax benefits, Texas provides a welcoming environment for businesses, characterized by its minimal regulatory hurdles and a government that actively supports economic development and entrepreneurship. The state's commitment to fostering a business-friendly atmosphere has not only attracted a diverse array of industries but has also spurred significant economic growth, creating a dynamic market with ample opportunities for new and expanding businesses. Furthermore, Texas's vast size and strategic location offer excellent logistical advantages, with easy access to domestic and international markets, further enhancing its appeal as a destination for businesses aiming for growth and accessibility. Coupled with a highly skilled and growing workforce, Texas stands out as an ideal location for LLCs looking to thrive in a competitive global landscape.


While transferring a Limited Liability Company (LLC) to Texas is a strategic move that many business owners make, the transition requires careful planning and compliance to legal procedures to ensure a seamless move.

 

Pros and Cons of LLC Domestication to Texas

Moving your Limited Liability Company (LLC) to Texas through domestication brings with it a blend of benefits and challenges that merit careful consideration. This strategy is highly sought after for several reasons, yet it carries its own set of complexities that cannot be overlooked.

Pros of Moving your LLC:

  • Business Continuity: By domesticating your LLC to Texas, you maintain your company's existing formation date, Employer Identification Number (EIN), and all associated historical data.
  • Tax Benefits: Texas is celebrated for its business-friendly tax environment, notably the absence of state income tax for individuals and favorable corporate tax rates.
  • Regulatory Simplification: By moving your LLC to Texas, you consolidate your compliance obligations to one state's regulations, thus simplifying legal and administrative duties.
  • Automatic Asset Transfer: The process inherently includes the automatic transfer of the LLC's assets and liabilities to the Texas entity.


Cons of Moving your LLC:

  • Process Complexity and Costs: The journey to domestication is not without its hurdles, often involving a complex maze of paperwork and potential legal consultations.
  • Limited Availability: Not all states offer the option for LLC domestication, which could limit your ability to utilize this method depending on the laws of your LLC's current state.
  • Tax Considerations: While Texas offers a favorable tax landscape, transitioning your LLC might still present tax implications, such as exposure to franchise taxes or navigating a new tax structure.
  • Adaptation to New Regulations: Relocating to Texas means adapting to a new regulatory environment, which might entail acquiring new licenses, permits, or complying with state-specific business laws.


Methods for Transferring My LLC To Texas?


Operating an Limited Liability Company (LLC) in Texas offers a variety of pathways, each tailored to meet different business needs. At Wilson Legal Group P.C. (dba Wilson Whitaker Rynell), we guide businesses through the options below. Each route comes with its set of benefits, challenges, and tax implications. For instance, converting to a Texas LLC facilitates a smooth transition with potential for automatic asset transfer, yet external obligations persist. Conversely, establishing a fresh entity provides a new beginning albeit with reinvestment requirements.  Below is a list of conversion possibilities and requirements that our Dallas LLC conversion lawyers can assist you with:

  • Register as a Foreign Enity

    Registration as a Foreign Entity is ideal for  for temporary operations or expansions in Texas.

  • Converting Your LLC to a Texas LLC

    Transforming your out-of-state LLC into a Texas LLC allows for uninterrupted business continuity with automatic property conversion. Note, out-of-state liabilities remain.

  • Forming a New Texas LLC

    You can simply start  anew in Texas, a move that might entail initial start-up costs but offers a clean slate.  You will then need to close the foreign corproaiton after assets are transfered.

  • Merging with a Texas LLC

    Seamlessly integrate your existing business into a Texas LLC, combining strengths and resources.

  • Updating Contracts and Operating Agreements Upon Moving Your LLC To Texas

    Relocating your LLC to Texas requires not just a change of address, but a comprehensive update of your operating agreements and contracts to align with Texas law. Ensure your legal documents, including employment agreements and operating agreements, are fully enforceable in the Lone Star State with expert assistance from a knowledgeable lawyer.


    Looking for assistance with dissolving a business in states like New York, California, or Florida and establishing or expanding into Texas? Whether it's starting afresh in Texas or leveraging a Texas corporation to acquire your out-of-state company, our attorneys at Wilson Whitaker Rynell are adept at guiding businesses through this transition without unnecessary delays. Our expertise in these matters allows us to offer efficient and cost-effective solutions tailored to your needs.


    Wilson Whitaker Rynell’s commitment to building lasting relationships is rooted in 25 years of serving entrepreneurs and self-employed individuals. With a proven track record and a dedication to client loyalty, our Dallas business lawyers here to support the growth and success of your business.


    Business Startup Assistance

Employment Taxes and Sales Tax in Texas


If your LLC employs staff, you're required to contribute to state unemployment insurance, alongside federal obligations. In Texas, the unemployment tax applies to the first $9,000 of an employee's earnings each year, with rates ranging from 0.31% to 6.31%, as determined by the Texas Workforce Commission.  Additionally, Texas imposes a sales tax on the sale of goods and services. As an LLC operating in Texas, it's your responsibility to collect and remit sales tax for transactions within the state.


Despite the absence of state income tax, Texas LLCs must contend with the franchise tax. This tax is calculated based on your LLC's profit margin, with several calculation options available:


  • 70% of total revenue;
  • Total revenue minus the cost of goods sold (COGS);
  • Total revenue minus compensation expenses;
  • Total revenue minus a $1 million exemption (applicable from January 1, 2014);
  • The EZ computation rate of 0.331% for businesses with less than $20 million in total revenue.


How Much Does It Cost To Transfer Or Domesticate A LLC To Texas?


The cost of Transferring your LLC to Texas will depend on the method you use and each client's unique LLC requirements. Items that must be considered include, but are not limited to, corporate rent, registration licenses, permits and conversion fees. To find out how much it will cost to your move your out-of-state LLC to Texas, schedule a consultation with one of our Texas business law attorneys.


Embark on Your Texas Business Journey


Ready to adapt your LLC for Texas's business-friendly landscape? At Wilson Whitaker Rynell, our Dallas attorneys are here to ensure a seamless transition, whether you're merging, converting, or starting anew. Contact us online or call us at (972) 248-8080 today to explore your options and optimize your business for success in Texas.

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Texas Divorce Attorneys

By Kayla Holderman • 10 May, 2024
Dallas Family Law & Divorce Attorneys Deciding to divorce is a challenging and significant life choice. Once you've made that decision, there are many paths to consider, and Wilson Whitaker Rynell is here to help you navigate the best way forward. What distinguishes us from other Dallas family law firms is our exceptionally skilled team of family law practitioners and our commitment to delivering outstanding client-centered service. Whether through mediation or litigation, our family law attorneys in Dallas bring a depth and breadth of knowledge gained through years of successful practice. We also have board certified divorce lawyers so you can count on the highest standards of integrity, expertise, and legal proficiency from the divorce lawyers at Wilson Whitaker Rynell. Whether you're in Dallas, Plano, Frisco, Allen or any other Dallas neighborhood, you can trust our local family law firm to provide you with the support and guidance of a highly experienced team of family lawyers. Family Law Practice Areas Our dedicated team is focused on providing personalized and effective legal solutions tailored to each client's unique circumstances. We understand that family law matters can be emotionally challenging, and we strive to offer compassionate support while staunchly defending our clients' rights and best interests. With Wilson Whitaker Rynell, you can trust that you'll receive top-tier legal representation from a team that genuinely prioritizes your well-being. We specialize in a wide range of family law and divorce matters, ensuring comprehensive legal support for our clients. Our experience includes, but is not limited to, the following areas:
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Kids & Custody: The Judge’s Chamber Chat

By Chelsea Lankford • 08 May, 2024
Interview of a Child in Chambers by a Texas Court Divorces can be messy; even more so when children are involved. One pivotal question that is often asked is who will receive primary custody. The prospect of children speaking to a judge during a divorce case to help determine custody can be a controversial topic. On one hand, it aims to understand and prioritize the child's preferences and best interests. On the other hand, exposing children to legal proceedings can be emotionally taxing and stressful . When Can the Judge Talk to Children? During a nonjury trial or hearing, the court is required to privately interview any child 12 years or older, while interviewing a child under 12 is at the judge's discretion. This private interview helps convey the child's wishes regarding who should have primary custody. The judge can also conduct the interview independently or on the request of a party, amicus attorney, or attorney ad litem. While speaking to the child can help determine issues of possession, access, and parent-child relationships, it does not restrict the court’s authority to decide what’s best for them. However, in cases where a jury trial is underway, the judge is prohibited from privately interviewing the child on matters subject to a jury verdict such as which parent is granted conservatorship/primary custody. During the conversations, attorneys representing the parents, the amicus attorney, the guardian ad litem, or the child's attorney ad litem may be present. For children aged 12 and older, the court is required to record these interviews to ensure a thorough and accurate record is available as part of the overall case documentation. Inside the Judge's Playbook: What Gets Asked? The judge may ask open-ended questions about living arrangements, the child's relationship with each parent, and other aspects relevant to their well-being. Additionally, an interviewer’s nonverbal communication may not contribute to the making of a particular statement. James v. Texas DHS, 836 S.W.2d 236, 239-241, (Tex.App.—Texarkana 1992, no writ.). However, the child's testimony is just one piece of the puzzle, weighed alongside other factors such as parental behavior, home stability, and each parent's willingness to cultivate the child's relationship with the other parent. Importantly, if the judge during the interview has reasonable cause to believe that a child’s physical or mental health or welfare has been adversely affected by abuse or neglect by any person , the the judge is obligated to shall immediately make a report. Tex. Fam. Code §261.101(a).
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The Franchise Agreement

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What is a Franchise Agreement? Businesses form franchise agreements when they want to share their business ideas and ventures with other entrepreneurs looking to be independent business operators themselves. The franchise agreement is a legal contract that establishes a franchisor-franchisee relationship to expand the franchisor's entrepreneurial ideas and values. The franchisor grants the franchisee the legal right to set up and operate a franchised business consistent with the terms of the franchise agreement. Under this agreement, the franchisee gains the license to use the franchisor’s trademarks, trade dress, business systems, operational manuals, and supply sources for offering and selling the franchisor's specified products and/or services. The franchise agreement is required to be legally included as an exhibit in the franchisor’s Franchise Disclosure Document, which must be presented to potential franchisees before any franchise offerings or sales are made. The federal trade commission publishes A Consumer's Guide to Buying a Franchise which is helpful for perspective purchasers' of franchises.
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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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