Texas law
Business Laws in Texas.
Texas has adopted the Texas Business Organizations Code (BOC, 2006 consolidation). Texas has adopted the UCC. Texas permits noncompetes subject to the "reasonable" test under Tex. Bus. & Com. Code § 15.50. The Texas Business Court (established 2024) handles complex commercial cases with specialized judges — a major 2023 reform. Texas is a leading corporate-formation jurisdiction; many public companies reincorporate from Delaware to Texas in recent years. Texas has no franchise tax (replaced by the distinctive Texas Franchise Tax — a margin tax — see tax-law).
Last verified: 2026-04-17
State law
Key Texas Statutes
Comprehensive business-entity statute enacted 2006, consolidating former Business Corporation Act, LLC Act, partnership statutes, etc.
Noncompete is enforceable if (1) ancillary to or part of an otherwise enforceable agreement at the time it was made; (2) contains reasonable limitations as to time, geographic scope, and scope of activity. Courts may reform overbroad provisions.
Provides civil remedies for misappropriation of trade secrets including injunctive relief, damages, and exemplary damages up to 2x for willful misappropriation.
Texas Business Court established September 2024 under HB 19 (2023). Specialized statewide court with 5 divisions (Houston, Dallas, Fort Worth, San Antonio, Austin) handling complex commercial cases ($10M+ threshold generally). Among the most significant business-litigation reforms nationally.
Texas's adoption of the UCC.
Texas has become an increasingly popular reincorporation destination for public companies (TSLA, SpaceX, PACCAR, among others), driven by the 2024 Texas Business Court and management-friendly governance reforms. This is a major recent development in U.S. corporate law.
State law
Official Sources
Not Legal Advice
This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in Texas.
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