1400 Gables Ct #103 Plano, TX 75075
5601 Bridge Street, #300, Ft. Worth, TX 76112

How to Qualify With the State of Texas for Limited Liability Partnership Status

To review previous blogs, limited liability partnerships are a good vehicle for some business owners because the general partner in a limited liability partnership is not individually liable for any obligation of the partnership incurred during the life of that partnership. Texas was the first state to create the limited liability partnership, to limit individual partners’ liability in the wake downturns in the real estate and oil market in the 1980’s

The registration of the partnership with the state is relatively simple, but before registering, the partnership must be formed by filing the certificate of formation with the Secretary of State. CAUTION, however:  We do not recommend you file any certificate of formation for this (or any other) entity until you have reduced to writing the division of equity interests and the duties and responsibilities of the partners participating. The worst a business owner can do is to file and begin doing business without visiting his lawyer to properly set up the business. While limited liability partnership agreements are not a legal requirement,  LLP owners are strongly advised to create one. The agreement puts into writing provisions and conditions defining the relationship between the partners, and should be put into writing to, among other things, provide methods for resolving conflicts that may arise. Because partnership agreements are not filed for public record, each partner should retain a copy of the agreement for safekeeping.

In our next blog, we will discuss why online legal services providing such services aren’t necessarily a good choice for small businesses.

Richard Armstrong, Principal

Richard Armstrong, Principal

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Armstrong The Law Firm, P.C.
Plano Location
1400 Gables Ct #103
Plano, TX 75075

Fort Worth Location (By Appointment Only)
5601 Bridge Street, Ste. 300
Ft. Worth, Texas 76112

Phone: (972) 424-5297