{"data":{"id":"us-tx/tex.-business-organizations-code-9.251","jurisdiction":"us-tx","citation":"Tex. Business Organizations Code § 9.251","heading":"ACTIVITIES NOT CONSTITUTING TRANSACTING BUSINESS IN THIS STATE.","body":"For purposes of this chapter, activities that do not constitute transaction of business in this state include:\n(1) maintaining or defending an action or suit or an administrative or arbitration proceeding, or effecting the settlement of:\n(A) such an action, suit, or proceeding; or\n(B) a claim or dispute to which the entity is a party;\n(2) holding a meeting of the entity's managerial officials, owners, or members or carrying on another activity concerning the entity's internal affairs;\n(3) maintaining a bank account;\n(4) maintaining an office or agency for:\n(A) transferring, exchanging, or registering securities the entity issues; or\n(B) appointing or maintaining a trustee or depositary related to the entity's securities;\n(5) voting the interest of an entity the foreign entity has acquired;\n(6) effecting a sale through an independent contractor;\n(7) creating, as borrower or lender, or acquiring indebtedness or a mortgage or other security interest in real or personal property;\n(8) securing or collecting a debt due the entity or enforcing a right in property that secures a debt due the entity;\n(9) transacting business in interstate commerce;\n(10) conducting an isolated transaction that:\n(A) is completed within a period of 30 days; and\n(B) is not in the course of a number of repeated, similar transactions;\n(11) in a case that does not involve an activity that would constitute the transaction of business in this state if the activity were one of a foreign entity acting in its own right:\n(A) exercising a power of executor or administrator of the estate of a nonresident decedent under ancillary letters issued by a court of this state; or\n(B) exercising a power of a trustee under the will of a nonresident decedent, or under a trust created by one or more nonresidents of this state, or by one or more foreign entities;\n(12) regarding a debt secured by a mortgage or lien on real or personal property in this state:\n(A) acquiring the debt in a transaction outside this state or in interstate commerce;\n(B) collecting or adjusting a principal or interest payment on the debt;\n(C) enforcing or adjusting a right or property securing the debt;\n(D) taking an action necessary to preserve and protect the interest of the mortgagee in the security; or\n(E) engaging in any combination of transactions described by this subdivision;\n(13) investing in or acquiring, in a transaction outside of this state, a royalty or other nonoperating mineral interest;\n(14) executing a division order, contract of sale, or other instrument incidental to ownership of a nonoperating mineral interest;\n(15) owning, without more, real or personal property in this state; or\n(16) acting as a governing person of a domestic or foreign entity that is registered to transact business in this state.\nActs 2003, 78th Leg., ch. 182, Sec. 1, eff. Jan. 1, 2006.\nAmended by:\nActs 2009, 81st Leg., R.S., Ch. 84 (S.B. 1442), Sec. 14, eff. September 1, 2009.\nActs 2021, 87th Leg., R.S., Ch. 39 (S.B. 1203), Sec. 16, eff. September 1, 2021.","path":["BUSINESS ORGANIZATIONS CODE","TITLE 1. GENERAL PROVISIONS","CHAPTER 9. FOREIGN ENTITIES","SUBCHAPTER F. DETERMINATION OF TRANSACTING BUSINESS IN THIS STATE"],"source_url":"https://statutes.capitol.texas.gov/Docs/BO/htm/BO.9.htm#9.251","current_through":"89th 2nd Called Legislative Session, 2025","vintage":"","retrieved_at":"2026-08-27T01:46:58Z","sha256":"523e9fe1efdff1801d14ccf069c068b23f57c7e31599530026588ce78576996f","source_id":"us-tx","stale":false,"prev":"us-tx/tex.-business-organizations-code-9.204","next":"us-tx/tex.-business-organizations-code-9.252"},"notice":"GroundRules: Original legal text. Not legal advice."}