People often place a great deal of emphasis on some of the financial consequences associated with business lawsuits, such as financial penalties resulting from an unsuccessful outcome in court, as well as the stress associated with litigation. However, there are many other challenges that may arise for business owners when their company is taken to court, which may impact their operations in other ways. For example, a business’ solid reputation could be virtually shattered because of a lawsuit, whether the litigation was a result of alleged discrimination, sexual harassment, wage violations, trade secret theft or some other type of wrongdoing.
One of the first decisions you have to make when starting a business in Texas is which business form you will use. There are a few options, and each one has specific requirements, benefits and characteristics. According to the Texas Secretary of State, there are five main business form options.