Running a small business in Texas is no small feat. Whether you’re slinging brisket in a BBQ joint, crafting custom furniture in the Hill Country, or launching a tech idea in Houston, you’ve got enough on your plate without legal headaches. But here’s the catch: some of the biggest risks to your business aren’t from competitors or cash flow—they’re from avoidable legal mistakes. At O’Neill Law, we’ve seen these slip-ups affect hardworking Texans time and again. Here are the five common legal mistakes small business owners make—and how you can steer clear.
1. Skipping the LLC or Corporation Setup
Many Texas entrepreneurs start as sole proprietorships because it’s the default—no paperwork, no fuss. But here is the problem: it leaves your personal assets (think house, truck, savings) wide open to business debts or lawsuits. Forming an LLC or corporation creates a legal shield between you and your business. It’s a $300 filing with the Texas Secretary of State and a little planning—cheap insurance compared to losing everything.
Fix It: File that Certificate of Formation and draft an operating agreement. We can help make it painless.
2. Ignoring Written Contracts
Handshake deals might feel like the Texas way, but they’re a recipe for trouble. Without a written contract—whether it’s with a vendor, client, or partner—disputes turn into “he said, she said” battles. Courts love clarity, and so should you.
Fix It: Put every agreement in writing. A quick contract review by a lawyer can save you a fortune in fights later.
3. Not Registering for the Right Permits or Licenses
Texas is business-friendly, but it’s not a free-for-all. Depending on your industry—say, food service in San Antonio or construction in Dallas—you might need state or local permits. Skipping them can mean fines, shutdowns, or worse. Forgetting to register for the Texas franchise tax (even if you owe $0) is another sneaky trap.
Fix It: Research your industry’s requirements or let us do the legwork. Compliance is easier than cleanup.
4. Failing to Plan for Business Disputes
Every business faces disagreements—maybe a client won’t pay, a supplier delivers late, a partner wants out, or an issue arises with an employee. Without a plan, these disputes can spiral into costly lawsuits or even sink your business. In Texas, where we pride ourselves on independence, it’s tempting to hope for the best—but that’s a gamble you don’t need to take.
Fix It: Build dispute resolution into your business and employment contracts (like mediation clauses) and have a legal strategy ready. We can help you prepare for the unexpected.
5. Neglecting Intellectual Property Protection
Your business name, logo, or secret sauce recipe might be your golden ticket—but they’re not safe without protection. If you don’t trademark your brand or secure your trade secrets, someone else can swoop in. In Texas, where competition’s fierce, that’s a risk you can’t afford.
Fix It: Register your trademark or draft a confidentiality agreement. It’s a small step for big security.
The Bottom Line: Don’t Go It Alone
These mistakes are easy to make when you’re busy building a business, but they’re even easier to avoid with the right help. At O’Neill Law, we’re here to keep your business dream on track. From setting up your LLC to drafting ironclad contracts, we’ve got your back—so you can focus on what you do best.
Spot one of these mistakes in your business? Don’t wait for it to bite you. Contact us today for a consultation, and let’s get your legal house in order. Success starts with a strong foundation—let’s build yours together.