Business formation, contracts and transactions

Build it so a lawsuit can't reach your house.

Most business lawyers form the entity and move on. We structure the company so that when something goes wrong — and eventually something does — the damage stops at the business and never reaches your home, your savings or your family.

Formation and asset protection are the same job. An entity filed without thinking about what it is shielding is a receipt from the Secretary of State, not a wall. The protection has to be designed in at the start, because it cannot be retrofitted once a claim exists.

$42M+in business sales
89%collections success
13,000+cases filed
50+trials completed
What proper structure changes

The nightmares, and the answers

The nightmare

  • A lawsuit could reach your personal assets
  • Template contracts with no Texas provisions
  • Customers who owe you and won't pay
  • No plan for selling the business
  • An operating agreement nobody has read

The answer

  • Business liability stops at the business
  • Agreements written for Texas courts
  • A real collections process behind your invoices
  • An exit structured for tax efficiency
  • Documents that hold up when tested
Free, no email required

Work out your own structure first

Eight free calculators for the decisions that cost the most to get wrong — entity choice, tax election, and how exposed you personally are right now.

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What we handle

From formation to exit

Three stages of a company's life, and the legal work each one actually needs. The thread running through all of them is the same: keep the business's problems inside the business.

Form it

Formation with asset protection

Fits when

  • Starting a new venture
  • Operating without an entity
  • Several owners going in together
  • Real estate or high-liability work
  • An existing entity nobody maintained

You keep

  • Texas Secretary of State filings
  • A custom operating agreement, not a template
  • EIN and tax election set up properly
  • Asset protection designed in from day one
  • Registered agent service

Benefits

  • Personal assets shielded from business claims
  • Ownership and control set out before there is a dispute
  • The tax structure chosen deliberately
  • Documents that survive scrutiny
Run it

Contracts that hold

Fits when

  • Sending quotes on a template
  • Hiring staff or contractors
  • Vendor and supplier relationships
  • Bringing in a partner
  • Sharing anything confidential

You keep

  • Service and vendor agreements
  • Employment and contractor agreements
  • Non-disclosure agreements
  • Partnership agreements
  • Texas-specific provisions throughout

Benefits

  • Liability limited before the dispute, not after
  • Dispute resolution you chose rather than inherited
  • Payment terms with teeth
  • Fewer arguments about what was agreed
Sell it

Exit without losing the gain

Fits when

  • An offer on the table
  • Planning an exit in a few years
  • A partner buying you out
  • Succession within a family
  • Wondering what the business is worth

You keep

  • Valuation coordinated with your accountant
  • Purchase agreement negotiated, not signed as offered
  • Due diligence managed
  • Deal structured for tax efficiency
  • Closing coordinated end to end

Benefits

  • $42M+ in business sales handled
  • Structure decided before the tax bill lands
  • Representations and warranties you can live with
  • A clean break rather than a lingering one
Why Texas matters

Texas is one of the best states to own a business

Some of this is tax, some of it is statute, and some of it is the strongest homestead protection in the country. Together it is a real advantage — if the structure is built to use it.

State income tax
TexasNone
ElsewhereUp to 13% of profit
Texas levies no corporate or personal income tax. On $100,000 of profit that is roughly $8,000 a year kept rather than paid, every year.
Homestead
TexasUnlimited
Elsewhere$25K–$170K limits
The strongest homestead protection in the country sits behind every Texas business owner — which is exactly what a properly structured entity is there to preserve.
Entity flexibility
TexasSeries LLCs allowed
ElsewhereOften unavailable
The Texas Business Organizations Code allows structures — series LLCs among them — that many states do not, with lighter ongoing compliance.
Retirement
Texas100% exempt
ElsewhereUsually capped
Owner retirement accounts stay beyond the reach of business creditors.
Real results for Texas businesses

What that looks like

DFW manufacturing company
Sale transaction$2.3M sale$180K tax savings
Herrin Law structured our LLC perfectly and when we sold after 8 years, their tax strategies saved us over $180K. The buyer's attorney said our operating agreement was the cleanest they'd ever seen.
Smooth $2.3M sale with maximum tax efficiency and asset protection.
Richardson IT services company
Collections$847K collected18-month process
A major client stiffed us for almost $900K. Other attorneys said it was hopeless, but Herrin Law's aggressive approach recovered 94% of what we were owed, plus interest and attorney fees.
$847K recovered from debt other firms had written off as uncollectable.
Plano general contractor
Asset protection$1.2M claimPersonal assets untouched
When a job went sideways and we got sued for $1.2M, Herrin Law's LLC structure protected our personal assets completely. The plaintiff got nothing from our family wealth.
Personal assets fully protected during major business litigation.

Client experiences described here are individual results. Every case turns on its own facts, and past results do not guarantee or predict a similar outcome.

Straight answers

What business owners get wrong

An LLC automatically protects everything I own
Only if it is maintained like a real entity and only where you have not personally guaranteed the obligation. Commingled funds, a missing operating agreement and ignored formalities are how a liability shield gets pierced — and a personal guarantee walks straight around it regardless.
A template operating agreement is fine
Until two owners disagree about money or one of them wants out. That is the moment the document is actually read, and generic agreements tend to be silent on exactly the questions that matter: valuation, deadlock, transfer restrictions, what happens on death or divorce.
I'll sort the contract out if a problem comes up
The contract is the thing that decides how the problem comes out. Liability limits, the venue, who pays the attorney's fees and how disputes get resolved are all settled before the dispute — afterwards you are simply living with whatever the other side's template said.
A handshake is fine, I trust my partner
Partnership disputes are rarely about trust at the start. They are about what happens when the business is worth real money, when one partner works harder than the other, or when someone's circumstances change. Writing it down early is a kindness to the friendship, not a slight against it.
Chasing an unpaid invoice isn't worth it
Most debtors settle quickly once a matter stops being an email chain and becomes a legal one. Asset investigation also changes the picture regularly — businesses that look empty from outside frequently are not.
I'll think about selling when I'm ready to sell
The structure that determines your tax bill on exit is set up years earlier. Entity type, how shares were issued and how the books were kept all decide what a sale actually nets you. By the time an offer arrives, most of it is already fixed.
Start to finish

How we set a company up

1
Today

Free consultation

What the business does, who owns it, what it is exposed to, and what you personally have at risk behind it.

2
Days 1–5

Structure recommended

Entity type, tax election, and how ownership and control should be arranged — chosen for your situation rather than the default.

3
Weeks 1–2

Documents drafted

Operating or shareholder agreement, and the contracts the business actually uses, written with Texas provisions.

4
Weeks 2–3

Filed and set up

Secretary of State filings, EIN, tax elections and registered agent — the administrative layer done properly.

5
As you grow

Ongoing

New contracts, new hires, new partners, collections when someone does not pay. The relationship is the point, not the filing.

When customers don't pay

Commercial collections

An unpaid invoice is a legal matter that has not been treated as one yet. Most debtors pay once the conversation changes character — and for the ones who do not, the question is whether anyone is willing to go and look at what they actually have.

Where we start

  • Demand letters that carry consequences
  • Negotiation with a filing deadline behind it
  • Review of your contract's fees and interest terms
  • A payment arrangement in writing
  • Most matters resolve at this stage

Where it goes if they stall

  • Suit filed and prosecuted
  • Asset investigation — what they really hold
  • Judgment obtained and then enforced
  • Post-judgment collection, which is the part most firms skip
  • 89% success rate across business collections
Week 1

Review the contract and the account. What the agreement says about interest and attorney's fees usually decides how much leverage there is.

Weeks 1–3

Demand and negotiation. A material share of accounts resolve here, which is the cheapest possible outcome.

If they stall

Suit filed. The calculation changes for a debtor once there is a live case rather than a letter.

After judgment

Asset investigation and enforcement. A judgment is only worth what someone does with it.

Questions

Business law questions answered

Should I form an LLC or a corporation?
It depends on your business goals, the number of owners and your tax situation. LLCs offer more flexibility in how ownership, management and distributions are arranged, while corporations can provide better tax planning for high-profit businesses. The right answer comes from looking at your specific numbers rather than from a general rule, and the choice is much easier to make well at the start than to change later.
How much does business formation cost?
Our integrated formation and asset protection packages start at $1,500, including state filings, a custom operating agreement, EIN setup and initial asset protection planning. It is worth weighing that against what an unprotected structure can cost in a single lawsuit.
Do I really need asset protection for a small business?
Yes. Small businesses carry liability from contracts, employees, customers and vendors just as larger ones do, and often with less margin to absorb a claim. Proper structure is what keeps a business dispute from reaching your home, your savings and your personal assets.
What makes your contracts different?
They are written for Texas — with provisions that reflect Texas law, strong dispute resolution clauses, real liability limitations, and asset protection considerations built in. Generic templates tend to be silent on precisely the terms that decide how a dispute turns out.
How successful are you at collecting business debts?
We maintain an 89% success rate in business collections, through demand and negotiation first, then thorough asset investigation and litigation where it is warranted. Most matters settle quickly once a debtor sees the account is being handled seriously.
Can you help me sell my business?
Yes — we have handled more than $42M in business sales. We coordinate with your broker and accountant to maximise value, structure the deal for tax efficiency, manage due diligence and run the closing. The earlier we are involved, the more of the tax outcome is still moveable.

Keep reading

Entities, guarantees, and protecting what the business earns.

Protect the business and the wealth behind it.

The cheapest time to structure this properly is before anything has gone wrong. Whether you are forming, contracting, collecting or selling, the first conversation is free.

  • Formation with asset protection built in
  • $42M+ in business sale transactions
  • 89% collections success rate
  • Free consultation to explore every option
Call (469) 607-8552 — free consultation