Below you will find answers to the questions prospective and current clients ask us most often. Questions are organized by topic. If you do not see what you are looking for, call us at 972-731-6500 or reach out through our contact form and we will get back to you promptly.
We handle the full range of business legal needs, including entity formation, contract drafting and review, mergers and acquisitions, business sales, non-compete and non-disclosure agreements, shareholder and LLC operating agreements, buy-sell agreements, employment agreements, and business disputes. We have been working with businesses across North Texas since 2004.
Texas does not require an attorney to form an LLC, but having one helps you avoid mistakes in your operating agreement that can create serious problems later. A well-drafted operating agreement addresses ownership percentages, management structure, how profits are distributed, what happens when a member wants to leave, and how disputes are handled. Those details matter significantly if a disagreement arises down the road.
Every business contract should clearly identify the parties, describe the obligations of each side, address payment terms, specify the duration and termination conditions, include a dispute resolution clause, and specify which state’s law governs the agreement. Many contracts also need provisions for indemnification, limitation of liability, and intellectual property ownership depending on the nature of the relationship. An attorney can ensure your contracts cover what they need to and do not include terms that create unintended exposure.
The right structure depends on your goals around liability protection, tax treatment, management flexibility, and plans for growth or outside investment. LLCs are the most common choice for small to mid-size businesses in Texas because they offer liability protection with significant flexibility. Corporations, including S-Corps and C-Corps, are better suited to certain situations, particularly when outside investment or stock-based compensation is involved. An attorney can walk you through the tradeoffs for your specific situation.
We regularly handle business law matters in Collin, Denton, Dallas, and Tarrant Counties. Our clients come from across the DFW area, including Frisco, McKinney, Plano, Allen, Prosper, Celina, The Colony, Lewisville, Denton, and Dallas.
If your business is regularly entering into contracts, has employees, owns intellectual property, or is growing through acquisitions or partnerships, an ongoing relationship with a business attorney is worth having before you need one urgently. Having counsel who already knows your business shortens the time it takes to respond when an issue arises and often helps you avoid problems that a periodic legal review would have caught.
Commercial litigation refers to disputes between businesses, or between businesses and individuals, that are resolved through the court system or formal arbitration. Common examples include breach of contract claims, fraud allegations, partnership disputes, non-compete enforcement, and disputes over business assets or intellectual property. HKH’s litigation attorneys have handled commercial disputes across Texas courts and federal venues for over 20 years.
Contact an attorney immediately. In Texas state court, you typically have 20 days after being served to file an answer. Missing that deadline can result in a default judgment regardless of the merits. Your first response sets the tone for the entire case, so getting experienced counsel involved at the earliest possible stage is critical.
It varies. A straightforward contract dispute can be resolved in 12 to 18 months. Complex multi-party cases with extensive discovery can take two to three years or longer. Many cases settle during or after discovery, which can shorten the timeline. Arbitration, when the contract requires it, often moves faster than court litigation. Your attorney can give you a realistic timeline once they understand the specifics of your matter.
In some cases, yes. Texas allows fee recovery under contracts that include attorney fee provisions and under specific statutes. Whether fee recovery applies to your situation depends on the claims involved and how the underlying agreements are written. An attorney can assess this as part of the initial case evaluation.
Mediation is a voluntary, non-binding process where a neutral mediator helps the parties work toward a settlement. Most Texas civil cases require mediation before trial. Arbitration is a private adjudication process where a neutral arbitrator hears both sides and issues a binding decision. Many commercial contracts include mandatory arbitration clauses. Both processes are alternatives to full trial, but they differ significantly in how they work and what the outcome means for each party.
Yes. Our attorneys are admitted to practice in the U.S. District Court for the Northern District of Texas, the Eastern District, and the Southern District of Texas. We handle federal commercial litigation matters including cases involving diversity jurisdiction, federal statutes, and matters that originate in state court and are removed to federal court.
Pay close attention to any non-compete or non-solicitation clauses, mandatory arbitration provisions, intellectual property assignment terms, and termination conditions. These provisions can have long-term consequences and are often negotiable before you accept a position. Having an attorney review the agreement before you sign is worth doing for any senior role or position involving access to sensitive business information.
The distinction matters for tax treatment, benefits eligibility, and legal liability. Texas and federal law use different tests to determine worker classification, generally looking at the degree of control the hiring party has over how the work is performed. Misclassifying employees as independent contractors can result in significant tax liability, penalties, and claims under employment laws. If you are unsure how a working relationship should be classified, an attorney can help you assess it.
A non-disclosure agreement, or NDA, is a contract that restricts one or both parties from sharing confidential information with third parties. Businesses use them when sharing proprietary information with potential partners, vendors, or employees before a formal relationship is established. They are also common in employment agreements and at the start of business negotiations. A well-drafted NDA clearly defines what information is protected, how long the restriction lasts, and what the consequences of a breach are.
Texas is an at-will employment state, which means that in the absence of a written employment contract specifying otherwise, either the employer or the employee can end the employment relationship at any time and for any reason, as long as the reason is not illegal. At-will employment does not protect against wrongful termination claims based on discrimination, retaliation, or violation of a specific statute. A written employment contract can modify the at-will relationship by specifying the grounds and process for termination.
Before you draft or implement employment contracts, non-compete agreements, or employee handbooks. Before you terminate a senior employee or one who has raised a complaint. When you receive a demand letter or a notice of a claim from a current or former employee. And before you respond to any government agency inquiry related to employment practices. Getting counsel involved early in employment matters almost always produces better outcomes than waiting until a situation has escalated.
Yes. HKH charges a fee for initial consultations on new legal matters. The exact amount depends on the type of legal issue involved. Call us at 972-731-6500 or contact us through our website to get the specific details for your situation.
You can schedule a consultation by calling our office at 972-731-6500 or by submitting a request through the contact form on our website. Someone from our office will follow up to confirm the details and discuss your matter briefly before the meeting.
Most matters are handled on an hourly retainer basis. At the start of an engagement, we establish a retainer agreement that covers the scope of work, hourly rates, and billing schedule. We provide detailed monthly invoices showing time spent, work performed, and any expenses incurred. Certain matters such as entity formation may be handled on a flat-fee basis. Contingency arrangements require approval from the firm’s managing partner.
Yes. Texas law protects all communications between an attorney and a prospective client made for the purpose of seeking legal advice, even if you do not retain the firm. Any information you share in a consultation with our attorneys is protected under attorney-client privilege. We take that obligation seriously.
Our office is in Frisco, Texas, and we serve clients throughout the DFW area. We handle matters in Collin, Dallas, Denton, and Tarrant Counties and in federal courts across Texas. Our attorneys have also handled cases in neighboring states when matters require it.