Simple English definitions for legal terms
Read a random definition: pat-down
Doing business means that a company from another state is working a lot in a different state and has to follow the rules of that state. This is important because it helps the state make sure that everyone follows the law. For example, in Texas, if someone from another state is doing business there, they have to follow the rules in Texas. This includes things like making contracts with people who live in Texas, doing something wrong in Texas, or hiring people from Texas. Even if someone does other things that are not on this list, they still might be doing business in Texas and have to follow the rules there.
Doing business refers to when a company or individual operates in a state to an extent that they can be subject to that state's jurisdiction. This term is often used in states' long-arm statutes, which allow courts to exercise jurisdiction over out-of-state entities that are doing business in the state.
For example, in Texas, the long-arm statute allows Texas courts to exercise jurisdiction over anyone doing business in Texas. This includes nonresidents who:
An example of doing business in Texas would be a company based in California that contracts with a Texas resident to provide services in Texas. If a dispute arises, the Texas courts would have jurisdiction over the California company because it is doing business in Texas.
Another example would be a New York resident who commits a tort in Texas, such as causing a car accident while driving through the state. The Texas courts would have jurisdiction over the New York resident because they are doing business in Texas by committing a tort there.
The Texas Supreme Court has also found that "other acts that may constitute doing business" can include investing in a Texas company, becoming its president, and loaning the company money. This illustrates that doing business can encompass a wide range of activities beyond the three enumerated categories in the long-arm statute.