In business, legal guidance plays a significant role in daily operations and long-term success. Companies operating in Texas must comply with state and federal regulations, manage contracts, protect intellectual property, and address business disputes when they arise. 

Having general counsel provides businesses with legal support tailored to their unique needs. The Jacobson Law Firm, P.C. in San Antonio, Texas, assists companies by offering legal advice that aligns with Texas business law, helping them operate smoothly while avoiding unnecessary risks.

The Value of General Counsel

Businesses encounter legal questions on a regular basis. Whether drafting agreements, addressing regulatory requirements, or resolving disputes, sound legal advice helps companies make informed decisions. 

General counsel serves as a dedicated legal resource, offering guidance on various aspects of business law to help businesses comply with legal requirements and protect their interests.

Texas business law governs everything from company formation to contractual relationships and dispute resolution. A knowledgeable legal representative can help businesses interpret legal requirements, draft policies, and address liabilities. 

Without proper legal support, companies may face contractual disputes, regulatory penalties, or challenges to their intellectual property rights.

General counsel provides an ongoing legal resource for businesses, offering support in various areas of business law, including corporate governance, employment matters, risk management, and compliance with Texas regulations. 

Instead of addressing legal issues reactively, businesses with general counsel can proactively manage risks and legal obligations.

Business Formation and Structure

One of the first legal decisions a business owner must make is selecting the right structure for the company. Texas business law provides multiple options, including sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. 

Each structure carries different legal and tax implications, so selecting the right one is critical for long-term success.

General counsel assists with business formation by advising on the advantages and disadvantages of each structure. Corporations and LLCs provide liability protection, while sole proprietorships and partnerships offer different tax benefits. 

Having legal guidance in this area helps business owners choose a structure that aligns with their goals while complying with Texas legal requirements.

Additionally, once a business is formed, it must adhere to corporate formalities and regulations under Texas business law. This includes filing necessary documents with the Texas Secretary of State, maintaining corporate records, and complying with reporting requirements. 

General counsel helps businesses remain compliant by keeping track of these obligations.

Contract Drafting and Review

Contracts serve as the foundation of business relationships. Whether entering into agreements with vendors, clients, or employees, clear and legally sound contracts protect a company’s interests. 

Under Texas business law, a well-drafted contract outlines each party’s obligations, prevents misunderstandings, and provides a legal guideline for dispute resolution.

General counsel plays an essential role in contract drafting and review. Businesses that rely on contracts for daily operations benefit from legal review to confirm that agreements comply with Texas law and contain enforceable terms. Poorly written contracts may lead to disputes, financial loss, or legal action. 

By working with legal counsel, businesses can strengthen their contractual relationships and reduce exposure to liability.

Disputes often arise from unclear contract terms or disagreements over obligations. General counsel assists in resolving disputes before they escalate into litigation. 

Whether negotiating contract modifications or addressing breaches, legal support can help businesses reach favorable outcomes while maintaining strong relationships with clients and partners.

Employment Law and Workplace Policies

Employment matters are a key area of business law, as Texas companies must comply with both state and federal employment regulations. Key aspects of employment law that businesses must address include:

• Hiring practices and employee policies: General counsel helps draft employee handbooks, workplace policies, and onboarding procedures to align with legal requirements.

• At-will employment considerations: Texas follows at-will employment laws, allowing termination for any lawful reason, but wrongful termination claims can still arise.

• Workplace disputes and compliance: Legal guidance helps businesses develop policies that address employee rights while protecting against liability.

• Regulations on discrimination and wages: Employment policies must comply with laws on discrimination, harassment, and wage requirements to avoid legal challenges.

General counsel reviews and updates employment policies to reflect changes in legislation, making sure that businesses remain compliant and protected from costly legal disputes.

Business Disputes and Litigation

Legal disputes are an unfortunate reality for many businesses. Whether disagreements arise over contracts, intellectual property, or regulatory issues, business disputes can disrupt operations and impact profitability. Texas business law provides several methods for resolving disputes, including mediation, arbitration, and litigation.

General counsel helps businesses assess their legal options when disputes arise. In many cases, early legal intervention can prevent a dispute from escalating into litigation. Settlement negotiations and alternative dispute resolution methods may help businesses avoid courtroom proceedings, which can be time-consuming and costly.

If litigation becomes necessary, general counsel can either represent businesses in court or locate business litigation counsel and assist in presenting a legal strategy aimed at protecting company interests. Whether defending against a lawsuit or pursuing claims against another party, having a legal representative familiar with business law can be an asset in achieving a favorable resolution.

Compliance with Texas Business Regulations

Texas businesses must comply with various state and federal regulations, including industry-specific requirements. Failure to comply with regulations can result in fines, penalties, or legal actions that affect a company’s ability to operate.

General counsel helps businesses stay informed of legal obligations, including licensing, tax compliance, environmental regulations, and industry-specific requirements. By addressing compliance proactively, businesses reduce the likelihood of regulatory penalties and legal disputes.

Texas business law frequently changes, and staying up to date with new regulations is essential for businesses operating in the state. Legal counsel assists companies in adjusting to legal updates, reviewing policies, and confirming compliance with state laws that affect their operations.

Intellectual Property Protection

Intellectual property (IP) is a valuable asset for many businesses. Whether dealing with trademarks, copyrights, patents, or trade secrets, companies must take steps to protect their IP rights under Texas business law.

General counsel assists in registering trademarks and copyrights, drafting non-disclosure agreements, and enforcing IP rights against infringement. Without legal protection, businesses risk losing valuable brand identity, proprietary information, or creative works.

Protecting intellectual property involves more than just registration. Businesses must monitor for potential infringement and take legal action when necessary. General counsel advises on IP strategy, helping businesses maintain control over their assets while preventing unauthorized use.

Mergers, Acquisitions, and Business Transactions

Business growth often involves mergers, acquisitions, and strategic partnerships. These transactions require careful legal review to confirm compliance with Texas business law and to protect a company’s financial interests.

General counsel plays an essential role in business transactions by assisting the client in conducting due diligence, reviewing agreements, and identifying potential risks. Mergers and acquisitions involve multiple legal considerations, including contract negotiations, liability assessments, and tax implications. 

Without proper legal oversight, businesses may enter agreements that create unnecessary exposure to financial and legal risks.

Texas law also requires businesses to follow specific procedures when transferring ownership, dissolving a company, or restructuring operations. Legal counsel helps businesses execute these transactions while complying with all applicable regulations.

Business Succession Planning

Business owners must plan for the future, including determining how ownership and management will transfer in the event of retirement, disability, or unexpected circumstances. Business succession planning is a critical aspect of Texas business law, as it helps companies avoid disputes and disruptions.

General counsel advises business owners on legal strategies for succession planning, including drafting buy-sell agreements, structuring ownership transfers, and addressing tax implications. A well-prepared succession plan protects business interests and provides clarity for future leadership.

Data Privacy and Cybersecurity Compliance

As businesses become more reliant on digital operations, data privacy and cybersecurity have become significant legal concerns. Texas business law imposes specific requirements for handling consumer data, and companies must take steps to protect sensitive information.

General counsel helps businesses develop data protection policies, comply with privacy laws, and respond to data breaches. Legal guidance in this area helps companies mitigate risks associated with cyber threats while maintaining compliance with state and federal regulations.

The First Step

As always, the above information is based on Texas law and is not a substitute for competent legal advice. If you own a business and don't yet have an attorney or firm who serve as general counsel, consider establishing such a relationship with an experienced attorney or firm. The Jacobson Law Firm, P.C. serves clients throughout Texas.