Question 1

Are non-compete agreements enforceable in Texas?

Accepted Answer

Yes, but with strict requirements. Under Texas Business & Commerce Code § 15.50, a non-compete must be: (1) ancillary to an otherwise enforceable agreement, (2) supported by consideration beyond just employment (e.g., access to trade secrets, specialized training), and (3) reasonable in time (typically 2 years max), geography, and scope. Texas courts will reform overly broad non-competes rather than void them entirely (§ 15.51(c)).

Question 2

Does Texas have specific freelance protection laws?

Accepted Answer

Unlike California and New York, Texas does not have a dedicated freelance protection act. Freelance relationships are governed by general contract law. Independent contractor classification follows the economic reality test (Tex. Lab. Code § 201.041). Our templates ensure proper IC classification and clear payment terms.

Question 3

How does Texas's community property law affect business contracts?

Accepted Answer

Texas is a community property state, meaning business assets, equity, and intellectual property acquired during marriage may be community property. This can affect IP assignments, equity grants, and partnership interests. Our templates include provisions addressing these considerations where relevant.

Question 4

What are the security deposit rules in Texas?

Accepted Answer

Under Texas Property Code § 92.103, landlords must return the security deposit within 30 days of the tenant vacating and providing a forwarding address, along with an itemized list of deductions. Bad faith retention can result in penalties of $100 plus three times the wrongfully withheld amount, plus attorney's fees.

Question 5

Is workers' compensation required in Texas?

Accepted Answer

No. Texas is one of the few states where workers' compensation insurance is optional (Tex. Lab. Code § 406.002). However, employers who don't carry it ('non-subscribers') lose important common-law defenses against employee injury claims. Our employment templates include appropriate disclosures.

Question 6

What is a Texas Series LLC?

Accepted Answer

A Series LLC (Tex. BOC § 101.601) is a unique Texas entity structure that allows a single LLC to create separate 'series,' each with its own assets, liabilities, members, and business purposes. The debts of one series generally don't affect others. Our partnership and business formation templates reference this option.

Question 7

How does the Texas DTPA affect service contracts?

Accepted Answer

The Texas Deceptive Trade Practices Act (Tex. Bus. & Com. Code § 17.41-17.63) provides consumer protections that may apply to service contracts. It allows treble damages for knowing or intentional violations. DTPA waivers are limited and only permitted in certain commercial transactions exceeding $500,000 (§ 17.42). Our service agreements include appropriate DTPA acknowledgments.

Texas Contract Templates — Built for the Lone Star State

Built for Texas law

Available contract types

Non-Disclosure Agreement

Freelance Contract

Lease Agreement

Service Agreement

Employment Agreement

Independent Contractor Agreement

Consulting Agreement

Partnership Agreement

Non-Compete/Non-Disclosure Agreement

Licensing Agreement

Compliance at a glance

Frequently asked questions

Related Resources

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Key Legal Terms

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