Texas Partnership Agreements
A partnership, sometimes called a general partnership, is one of the simplest forms of business entities, existing whenever two or more people go into business. Partnerships often use written agreements, typically called partnership agreements, though these are not required for a partnership to exist. The Texas partnership laws can be difficult to understand, so always contact an experienced attorney if you need legal advice.
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Definition
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In Texas, a general partnership forms whenever two or more people enter into an association with one another and agree to share the profits or losses of the enterprise between them, according to James J. Burnett, a Texas attorney. A partnership agreement is any agreement the partners make between themselves, and can be oral or written. While any partnership can write or create its own partnership agreement, the absence of such an agreement does not preclude an enterprise from being a partnership, and these entities can exist whether or not the partners desire it to.
Terms
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A partnership agreement generally can set out whatever terms the partners desire. Typically, these agreements are written documents and contain terms including profit and loss distribution percentages, management roles of the partners, the length of time the partnership is intended to last, the contributions to the partnership each person is responsible fore and other terms. Partnership agreements are also commonly used to address how disagreements or conflicts between the partners get handled.
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Filing Requirements
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Unlike other forms of business such as limited partnerships, limited liability companies and corporations, partnerships do not have to file any documentation with state to be recognized, according to the Secretary of State of Texas. A partnership that wishes to use a business name other than the names of the partners must file for an assumed name certificate, but it does not have to register or file any partnership agreements.
Limited Partnerships and Limited Liability Partnership
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Texas also recognizes two other forms of partnership: the limited partnership, or LP, and the limited liability partnership, or LLP. Unlike general partnerships, these entities must file with the Texas Secretary of State's Office before they can be recognized. Both of these forms of partnerships can also employ partnership agreements, but like the general partnership, they do not need to file these agreements with the state.
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References
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