It can be dry reading and is often a bit difficult to understand, but it is good to be aware of the state laws governing businesses in your state. Go to the Secretary of State website for the state your company is (or is to be) formed. Follow links to the business code section. There are definitions followed by a great number of laws the state uses to regulate businesses. Information on LLC’s and LLP’s can be found there. In Texas, the “Business Organization Code” and “Business and Commerce Code” are of interest. This is where the Uniform Commercial Code is found, a term used by most states. Businesses must abide by these codes from beginning to end or face the possibility of fines or other consequences determined by the state.
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