Notice to tenant for eviction inside brown envelope and face mask on top.The Center for Disease Control’s (CDC) Eviction Moratorium confirms President Reagan’s quip that a government program is the “nearest thing to eternal life we’ll ever see on this earth.” As explained in my prior post, the CDC issued an order in September 2020 “temporarily” halting residential evictions , reasoning that it was necessary to combat the spread of the coronavirus (COVID-19). That moratorium was originally set to expire on December 31, 2020, but Congress extended it by one month. Before that congressional extension expired, the CDC—now acting under the Biden administration—twice extended the moratorium, with the latter extension due to expire on June 30, 2021.

After repeatedly stating that he lacked the authority to extend the Eviction Moratorium again, President Biden caved into pressure from progressive Democrats and did exactly that earlier this month. The President doubted that the new extension would pass “constitutional muster” but was hopeful that the legal challenges would provide more time to distribute congressional funds for rental assistance.

Like the prior versions, the latest version of the Eviction Moratorium generally prohibits the evictions of a residential tenant who expects to earn $99,000 or less in 2021 (or $198,000 if filing jointly) and signs a declaration stating that he or she has lost income, applied for government assistance, and would likely become homeless or forced to move into a more crowded living situation if he or she was evicted. But, unlike prior versions, the latest one does not ban evictions nationwide. Instead, it applies in counties that are “experiencing substantial or high levels of community transmission of [COVID-19].” This latest version is set to expire on October 3, subject, of course, “to revision based on the changing public health landscape.”

The upshot is that the Eviction Moratorium is in effect for over 90 percent of the country and nearly all counties in Texas. Check this map to determine whether it applies to your property. The courts, however, are split on whether the Moratorium is legal. The Supreme Court has not ruled on it yet, but there are strong indications that most of the justices believe that the CDC lacks the authority to halt evictions. Here’s what you need to know about the latest extension: Continue Reading The CDC’s New Eviction Moratorium Extends the Uncertainty for Landlords and Tenants

Black silhouette of female singer with white spotlights in the background.Grant Bux’s daughter Kathy “Kitten” Bux is quite the singer. She had her own record deal when she was 15 and hit it big when she became the executive producer of her fifth studio album at 26. But then, depending upon who you ask, Kitten had emotional and mental issues that prompted Grant to ask for a guardianship of Kitten. The Court decreed a guardianship; Grant is the guardian. Can a parent take over the responsibility for the physical and financial well-being of their adult child? If so, how, why and for how long? Continue Reading Guardianships in Texas and Your Adult Children

child with sparkler and lighter

Andy Taylor’s seven-year-old son, Opie, discovers the fireworks that his father had purchased for Independence Day. He begins shooting them in a field behind their house. But Opie fails to extinguish one of the matches, which sets fire to the arid grass. Opie attempts to stomp it out but is unsuccessful. Terrified, he flees. The blaze continues to grow, spreading across the field to a nearby lumber yard. The fire consumes—and destroys—the lumber yard. Its owner looks to hold someone responsible, but is keenly aware that little boys lack the assets necessary to satisfy any judgment rendered against them. So the lumber yard’s owner considers suing Andy instead. Is Andy liable for his son’s negligence? Continue Reading Blame the Parents: Liability for Children’s Torts

Female legs with 2 arrows and question mark, painted on the asphalt.On Father’s Day, Morgan Bux celebrated with her dad Big Daddy Bux and asked him to team up with her to buy the fast-growing Green Earth Air Conditioning and Heating, LLC in Buda from the Green Earth retiring owner Gaia. Morgan suggested to Big Daddy that he invest her inheritance in Green Earth and work with her to grow the business as part of his own retirement and estate planning. Big Daddy’s tax and estate planning lawyers outlined a plan. Morgan’s business consultant recommended the formation of a Green Earth advisory team to support her after the purchase and developed a long-term plan for management growth and business expansion. To complete the purchase, should Morgan buy the assets or Gaia’s membership interest in the Green Earth limited liability company? Often buyers would rather purchase the company’s asset while sellers prefer to sell the stock / membership interest in the entire company. Why is that? What would Morgan and Big Daddy prefer? Continue Reading Buying Daughter a Business – Assets or Stock?

Yellow metal sign.Angelica Bux and her son Duke own a fast-growing, family business Blue Skies Air Conditioning and Heating, LLC in Cotulla Texas. Angelica plans to retire by selling Blue Skies to Duke to fund her retirement.  Their business consultant developed their near-term plan to expand and maximize their business’ value. More recently, their tax and estate planning lawyers outlined an effective tax transition plan and the formation of a Blue Skies’ advisory team to support Duke’s management after the sale. To complete the purchase, should Duke buy the assets or Angelica’s membership interest in the Blue Skies’ limited liability company? Often buyers prefer to purchase the company’s assets, and sellers would rather sell the entire company. Why is that? Does an inter-family sale affect their decision? Continue Reading Selling Mom’s Business – Asset or Stock Sale?

Defaulting renter with facemask receives letter giving notice of eviction from home on wooden tableDrake Goodman and Patty Palmer lease a studio apartment to Carter Haynes. But Haynes has not paid rent since last May, when the shelter-in-place orders caused his fledging restaurant to go out of business. While sympathetic to Haynes’s plight, the loss of rental income has severely damaged Goodman and Palmer’s own finances, and they are growing increasingly desperate. Can they evict Hayes? Should they? Continue Reading CDC’s Eviction Moratorium: Legal Limbo for Landlords and Tenants

Great concept of divorce in quarantine due to the 2019 coronavirus pandemic. Face mask cut in half with wedding rings.Jack Bux and his high school sweetheart, Diane, have been married a few years, but the pandemic has taken its toll on their relationship, and they could soon be parting ways. Going into the marriage, Jack had a number of property interests – a home with a mortgage, a retirement account and a small part of the family business – and now he’s concerned that Diane will be able to walk away with half of what he’s been building over the years. Like most Texans, Jack is aware that when it comes to marital property, Texas is a “community property state.” What does this really mean for Jack’s home, retirement account and business? Continue Reading Texas Community Property Law: An Intro for Business Owners

Youre fired with exclamation written on blackboard, businessman holding sign, stock footage

Ernest “Big Daddy” Bux’s daughter Kathy “Kitten” was working for Approval Literary Agency in Blessing, Texas – that is until last month. Kitten, an associate literary agent with Approval Literary was sacked after her boss learned that she owned accounts on the politically charged social media sites Lobby and Blabber. The agency’s owner I.B. Cheef publicly announced on Twitter that the firm had dropped Kitten after making the “distressing” discovery. Kitten tweeted that she was fired because of her political views. Does Kitten have a case for wrongful termination? Continue Reading Falling Off the Fence: Can You Fire Those with Different Viewpoints?

Businessman shows concept hologram Transparency on his hand to symbolize the Corporate Transparency ActLast month’s post explained how setting up a dummy company can help seal a deal. Unfortunately, dummy companies can be used for far more nefarious purposes, including money laundering, terrorism financing, and tax fraud. For example, the New York Times and 60 Minutes revealed how high-end real estate has been snatched up by dummy companies linked to foreigners with ties to organized crime, despotic regimes, or both.

They were able to use dummy companies to anonymously move money into the United States, because most States do not require organizers of corporations or LLCs to disclose their true owners. That’s the case in Texas. The certificate of formation for a Texas corporation must identify its initial directors but not its shareholders. And the organizer of a Texas LLC can conceal its members by setting the company up as a manager-managed LLC and then appointing a non-member as the manager. While the ability to conceal the company’s owners is good for a buyer seeking to obtain a lower price or discourage competitive bidding, it presents a significant challenge for law enforcement and intelligence agencies.

To combat the illicit use of dummy companies, Congress enacted the Corporate Transparency Act. It was tucked away in the National Defense Authorization Act, which became law on January 1, 2021, when Congress overrode President Trump’s veto.

The Corporate Transparency Act generally requires corporations, LLCs and other similar entities to file reports on their beneficial ownership with the Financial Crimes Enforcement Network (FinCEN) of the Department of the Treasury beginning next year. While the Corporate Transparency Act was aimed at malign actors using dummy companies, its obligations, like the rain, fall on the just and unjust alike. Millions of companies will have to file new reports on their beneficial ownership with the federal government, regardless of whether they are dummy companies or engaged in any illegal activity. While the scope of those reporting obligations are not clear yet, here’s what your company needs to know now: Continue Reading The Corporate Transparency Act: What Your Company Needs to Know About the New Federal Reporting Requirements

Welcome to Texas State Sign

Last month we focused on the legal considerations for moving your company to Texas. This month our focus is on your personal checklist – legal issues affecting you personally that will need your attention this year.

But first, a quick note about immigration. Together with his kind comments about our last Moving to Texas? article, my good friend and erstwhile immigration attorney Rick Gump urged me to remind both the company management and their employees to ensure that, when moving to Texas, legacy employees are treated as new employees for I-9 verification purposes. He advises that it is important to clean up the company files and take care of company employees by cleaning up their files as they might become subject to an I-9 audit.

After you settle in to your new Texas home and while you are unpacking, it’s time to make your own personal checklists. You might start with these. Continue Reading Moving to Texas? Your Personal Checklist for your Move to the Lone Star State