Legal News

Author: Priyanka Saxena on Aug 26,2022

Business Law In Texas: Key Factors You Should Consider

Starting and running a business requires knowledge of specific legal requirements and regulations. Without them, you could end up breaking laws without meaning to or leave yourself open to risk from competitors or others with malicious intent. Fortunately, there are many resources available to help you understand the ins and outs of business law in Texas. In any state, it's important for entrepreneurs to have a good understanding of the legal implications of starting and running a new business. Knowing your rights as an employee, contractor, or company owner is essential when it comes to taxation, contracts, property rights, liabilities, and other legal concepts specific to business law in Texas. Read on for useful information on some of the most important things you need to know about business law in Texas if you currently operate or plan to operate a business there.

Know your rights as an employee

If you're hired by an employer, you'll need to understand your rights as an employee. This includes your entitlement to a minimum wage, time off, and the right to be free from discrimination and harassment based on factors like race, sex, sexual orientation, and religion. When you're being hired, be sure you understand your rights. You may have additional rights and responsibilities if you're in a managerial or other supervisory position. If you have employees of your own, you'll need to understand what they are. For example, you'll need to know what to do to get workers' compensation insurance coverage, how to hire people and what you can and cannot legally require, and how to write an employment contract.

Know your rights as a contractor

Suppose your company is hired to do work for another company. In that case, you may be an independent contractor instead of an employee. If so, you may not be entitled to as many legal benefits as an employee, like a minimum wage or certain employment benefits. You'll need to be sure you're classified as a contractor. If you're unsure of your status, you may want to check with an employment lawyer. You may need to sign a contract before beginning work to ensure you're legally recognized as a contractor. Some employment contracts will have a provision indicating that the person hired is an independent contractor. In contrast, other employment contracts will leave the status of the worker unclear. If you're not sure whether you're an employee or a contractor, it's a good idea to take legal advice before you start working.

Know when you're liable for taxes

You'll have taxes taken out of each paycheck if you're hired as an employee. If you're self-employed and work as a contractor, you'll have to pay your own taxes. You may also be liable for additional taxes if you're in a high-risk profession like construction or certain utilities. Suppose you're not sure whether you're liable for taxes. In that case, you can take a sample tax return to a tax preparer or accountant to get advice on your situation. If you're a contractor, you'll need to make quarterly income tax payments on the work you've completed. You may also have to pay self-employment taxes if your income is high enough. Your accountant or tax preparer can help you with this.

Be aware of your company's legal obligations

If you start a company, you'll have certain legal obligations to your employees. Some of these obligations include paying a minimum wage, keeping records of hours worked, and providing certain benefits like health insurance. If you fail to meet these obligations, you could be sued by employees for back pay. You may also be subject to criminal charges. You'll also be subject to certain taxes and regulations. You may need to obtain a business license, pay sales taxes, and/or obtain an occupational license to make sure you're adhering to the laws in your state. You'll also need to ensure you have insurance coverage that protects you and your employees against certain losses.

Be aware of intellectual property laws

When starting a business, you may have a great idea that other people may want to copy. To protect yourself, you can file a patent application before you start marketing your product or service. If you have a patent, no one can legally make copies of the patented product or service without your permission. You can also file for a trademark to make your product or service unique. No one else can legally use that name or logo for their products or services. These are important things to keep in mind if you want to build your business and protect your ideas.

Be aware of product liability laws

If your company makes a product, you may face a product liability lawsuit if someone is injured or otherwise harmed by that product. In many cases, product liability laws are brought against the manufacturer of the product, not the retailer. While you may be able to prevent some product liability lawsuits by following proper safety and quality standards when making your product, some lawsuits are unavoidable. To protect yourself, you may want to purchase product liability insurance. This type of insurance will help cover your legal costs if you're sued and help protect your business against any financial damages awarded in court.

Be aware of wage and hour laws

If you employ people, you must follow wage and hour laws. This means you must pay at least the minimum wage to all your employees, keep records of the wages you pay, and make sure employees are not working too many hours in a day or a week. Both federal and state laws govern wage and hour issues. The federal government has a department dedicated to this, called the Department of Labor. Any state you do business in also has a department dedicated to these laws. If you fail to follow wage and hour laws, you could be subject to large fines. You could also face lawsuits from your employees.

Conclusion

Business law in Texas is a wide and expansive topic. By knowing your rights as an employee, contractor, or company owner, and your company's legal obligations, you can better protect yourself and your business against fines, fees, and other problems. Be sure to keep up with any changes in law as they happen and keep informed to make sure you stay protected. We hope that our article will solve all your queries regarding the present structure of business law in Texas.