Leslie Wm. Adams & Associates

Houston, Texas Business Law Blog

Actions to take before opening a business

Opening a business in Texas can be a very exciting opportunity for entrepreneurs. However, there are many steps to take before making this kind of major investment. The preparation taken before a business opens can make a big difference in the short- and long-term success of the company. The first step is to create a solid business plan. A plan should describe what a business does and how it's different from the competition. It should also describe the market, structure and financial projections.

The next step is to register the company with the applicable regulators. There are several different ways to do this, including registering as a sole proprietorship or establishing a limited liability corporation. If the company plans on having employees, it will need an Employer Identification Number (EIN) from the Internal Revenue Service. That will enable the business to pay the taxes it owes to both the state and federal government.

Title insurance and the commercial real estate transaction

After spending a substantial amount of your time finding the right piece of Texas commercial property, you want the transaction to go smoothly and well. The last thing you want is to discover some potentially costly issue at some point in the future.

For you, this may mean making sure the property is properly zoned, and that your financing comes through without a hitch. While these issues are critically important, you also need to consider that the deed to your new property may not be enough to ensure you actually own the property.

Considerations for startups pursuing venture capital

When Texas entrepreneurs launch a new business, they may be drawn in by the thought of gaining significant investments through venture capital. Angel investors and venture capitalists can be particularly important for people looking to launch innovative businesses and grow them widely. Some of the largest tech companies to emerge in past decades have been supported by venture capital, and those looking to follow along the same path may want to imitate that model. Still, it is important to consider whether a particular venture capital investor is a good fit for a particular startup in order to help ensure a successful future.

Experts advise that founders should work to understand the motivations driving a venture capitalist to invest in their companies. A large number of supported projects fail to come to fruition, and a 40 to 50% failure rate is common. Venture capital firms make their money on the percentage of successful investments, where they will multiply their invested funds many times over. Therefore, this kind of investment is a better fit for founders who want to see their companies grow rapidly, rather than those who want to remain smaller.

Should your business have a backup plan?

When you decide to start a business, there are often many concerns about how you will make ends meet, when success will come and what the process will entail. Meanwhile, well-intentioned people around you will likely offer up their versions of sage advice, though typically based more in fear than experience.

Starting a business involves risk, no matter how great the concept. And although you probably hate to consider the necessity of a safety net, you might be more concerned about which one (or ones) would be good to put in place. Although you don’t intend for your new endeavor to fail, some safety nets might be appropriate ways of minimizing your risk while you establish your business.

The tech hub and business startups

Recently, there has been significant approval of business loans in Texas and across the U.S. This is probably due to a booming economy and consumer confidence.

Yet according to a recent Xconomy article, not much has come of efforts to begin a tech hub in the city of Houston. There is a perception that talent may be lacking. However, it does seem possible to overcome the challenges of locating talent by working with the right resources.

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Leslie Wm. Adams & Associates 3700 Buffalo Speedway, Suite 420, Houston, TX 77098 Phone: 713-364-0564 Fax: 713-728-6366 Houston Law Office Map

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