Running a business in Austin means making decisions quickly, but contracts are one place you don’t want to rush. From startups and creative agencies to service providers of every size, clear agreements protect your interests and give your company the stability it needs to grow.

As experienced Austin business contract lawyers, Bollier Ciccone Stinson LLP regularly helps entrepreneurs and companies of all sizes structure, review, and negotiate business agreements that work in their favor—especially within Austin’s fast-moving, innovation-driven economy.

In this article, the BCS Law team will cover:

1. The most common contracts needed by Austin businesses
2. Austin-specific legal considerations when drafting agreements
3. The role of contract review in Texas
4. How a business contract lawyer in Austin can help
5. Best practices for setting up your new business

Why Contracts Are Crucial for Austin Businesses

Contracts are more than formalities; they are enforceable legal tools that define rights, obligations, and remedies between parties. In a competitive and collaborative city like Austin, clear contracts are essential for maintaining trust, minimizing risk, and avoiding costly disputes.

Whether you’re entering a vendor agreement or partnering with another entrepreneur, a poorly written contract, or no contract at all, can expose your business to liabilities that are expensive and time-consuming to resolve.

Common Business Contracts for Austin Companies

Business needs vary by industry, but these are the most common types of contracts we help draft and review for Austin-based businesses:

1. Service Agreements

Austin has a large service-based economy—from marketing and design firms to software developers and consultants. Service agreements outline:

• Scope of services
• Payment terms
• Timeline and key deliverables
• Who owns the work or intellectual property
• How and when the agreement can be terminated
• Options for resolving disputes if they arise

Because so many Austin companies work business-to-business (B2B), having service agreements that spell these points out clearly is not just helpful—it’s critical to protecting both sides. 

2. Partnership Agreements

When more than one person is involved in running a business, a written agreement helps prevent misunderstandings down the road. A good partnership agreement might spell out:

• How much of the company each partner owns
• The amount of money, property, or other resources each person is putting in
• Day-to-day roles, plus who makes which decisions
• How income (and losses) are divided
• What happens if someone wants to step away or sell their share, or a death or divorce take place 

In Austin’s startup scene, we frequently see informal partnerships that lack clear legal agreements. This often leads to conflicts that could have been prevented with the help of an Austin business contract lawyer.

3. Vendor and Supplier Agreements

Whether you’re buying ingredients for a restaurant on South Congress or signing on with a software provider in East Austin, a vendor agreement helps make sure both sides know exactly what to expect. The most common points to cover are:

• A clear description of the product or service being provided
• How and when payments will be invoiced and collected
• Delivery timelines and scheduling details
• Any warranties or guarantees
• Limits on liability if something goes wrong

4. Lease and Construction-Related Agreements

If your business needs a physical location or plans to renovate a space, contracts tied to leasing and construction are just as important as your vendor or service agreements. These can include:

• Commercial leases or subleases for offices, storefronts, restaurants, or manufacturing facilities
• Contracts with general contractors or subcontractors for remodeling, renovations, or new builds
• Construction agreements that outline project timelines, payment schedules, change orders, and dispute resolution

Without clear terms, businesses can face delays, unexpected costs, or liability issues during a buildout or remodel. Having these agreements drafted or reviewed by a business contract lawyer in Austin helps ensure your company’s rights are protected before work begins.

Specific Considerations for Austin Business Contracts

Running a business in Austin means paying attention to more than just the deal itself. Companies here have to comply with Texas contract law as well as local city rules, and a few areas tend to come up again and again:

1. Texas Contract Law Nuances

Texas law generally favors freedom to contract, meaning parties can agree to broad terms unless they’re illegal or unconscionable. However, this also means that Texas courts often strictly enforce the terms you sign, even if they’re unfavorable.

That’s why contract review in Texas is so critical before signing any agreement. 

2. Non-Compete and Non-Solicitation Clauses

These clauses are common in service contracts and employment agreements. Under Texas law, non-competes must be:

• Ancillary to an otherwise enforceable agreement
• Reasonable in scope, geography, and duration

In Texas, non-compete agreements remain enforceable if they are tied to an otherwise valid contract and are reasonable in time, geography, and scope. Texas courts will enforce these covenants and may also reform them if they are overly broad. A recent federal rule that would have banned most non-competes was struck down by a Texas court, and the FTC has since dropped its appeal, leaving Texas law firmly in place.

3. IP Ownership in Tech and Creative Sectors

Austin’s booming startup and creative industries require particular attention to intellectual property (IP) clauses. Whether you’re hiring a freelance designer or collaborating on a new app, make sure the contract clearly specifies who owns the rights to the final product.

If this isn’t clearly addressed, you could lose valuable ownership of work you paid for. 

4. Local Business Regulations and Licensing

Although Texas is known for its business-friendly environment, the City of Austin does have its own licensing requirements, zoning rules, and environmental regulations. Your contracts should reflect any local compliance requirements where relevant. 

 

Why Work with an Austin Business Contract Lawyer?

A knowledgeable Austin business contract lawyer brings both legal expertise and local insight to the table. Here’s what the qualified attorneys at BCS Law can do for you:

• Draft enforceable contracts that meet your specific business goals
• Review contracts you’re asked to sign, highlighting risks or unfair clauses
• Negotiate terms to better protect your interests
• Ensure compliance with Texas and local Austin laws
• Minimize litigation risk by building strong contracts upfront

With Austin’s business ecosystem evolving rapidly—especially in sectors like tech, Green Energy, and professional services—legal guidance can give you a significant advantage.

What’s the Best Way to Set Up My New Business in Austin?

The type of legal entity you choose will shape your taxes, liability, and even how your contracts are written. In Austin, most small businesses choose an LLC because it offers flexibility and liability protection. Some elect S-Corp status for federal tax purposes, but that’s a tax election rather than a separate entity type. Larger companies, or those planning to raise money from investors, may opt for a C-Corporation, which follows a more traditional corporate structure.

 Here’s a quick checklist: 

1. Choose the Right Business Structure

Common choices in Austin include:

• LLC – the most popular choice for small businesses because it balances flexibility with liability protection. Many owners also elect S-Corp tax status, which is an IRS tax classification, not a separate entity type.
• C-Corporation – a traditional corporate structure that some growing companies choose, especially if they plan to raise outside investment.
• Partnership or Sole Proprietorship – the simplest to form, but they provide little to no liability protection for the owners.

We help you choose and form the right structure for your goals.

2. Register Your Business

File with the Texas Secretary of State and obtain an EIN (Employer Identification Number). Austin businesses may also need local permits or licenses, depending on the industry.

3. Draft Foundational Contracts

When you’re getting a business off the ground, a few agreements make life much easier. For example, you may want to have:

• An operating agreement that explains how your LLC will be managed
• Service or sales contracts to set clear expectations with clients and customers
• Employment or contractor agreements that outline pay and responsibilities
• NDAs or intellectual property agreements to protect sensitive information and ownership rights

In our experience, templates only get you so far. If your business is growing—or has anything unique about it—it’s worth having a lawyer tailor these documents to you.

4. Protect Intellectual Property

Austin businesses in design, tech, or media should protect IP early. Instead of leaving ownership questions for later, many Austin businesses take steps to protect their work up front. That could mean registering a trademark, filing a copyright, or making sure contracts spell out who actually owns the intellectual property.

5. Plan for Growth

Include clauses that anticipate future changes—like scaling operations, adding investors, or exiting the business. Well-drafted agreements evolve with your business.

Don’t Sign That Contract Until It’s Reviewed

Even “simple” agreements can include hidden pitfalls. Never sign a business contract—especially one involving large sums, long commitments, or valuable IP—without having it reviewed by a qualified Austin business contract lawyer.

A contract review in Texas often uncovers:

• Unclear or one-sided terms
• Hidden liability risks
• Gaps in payment protections
• Improper jurisdiction or dispute resolution clauses

In many cases, the cost of a legal review is far less than the cost of a future lawsuit or broken partnership. 

Final Thoughts: Ready to Protect Your Austin Business?

If you’re forming a new business or need help with a contract, our experienced Austin business contract attorneys are here to help. We assist with everything from drafting and reviewing contracts to negotiating terms that protect your interests and ensure long-term success.

Whether you’re a first-time entrepreneur or managing an established company, strong contracts are your first line of defense.

When it comes to business law, Bollier Ciccone Stinson LLP consistently delivers smart and real-time legal solutions to clients throughout Austin and its surrounding areas. Notably, our Business Law practice is led by Tony Ciccone, a veteran business, construction, and real estate attorney who is not only Board Certified in Construction Law by the Texas Board of Legal Specialization, but also Martindale-Hubbell “AV Preeminent” rated.

Contact BCS Law today for a consultation, and let’s build your business the right way.