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

“What About the Limited Liability Partnerships I’ve Heard About?”

General partnerships and limited partnerships may seek to qualify as “limited liability partnerships.” Under prior law, such partnerships were known as “registered” limited liability partnerships. What, you may ask, do these critters add to the mix that is not already in place by virtue of the plain vanilla partnership?

Actually, there is a big advantage to this form:  Qualifying as a limited liability partnership protects the both general partners and the individual limited partners who could otherwise be liable to creditors for partnership debts, from certain liabilities. Status as a limited liability partnership, however, has no effect on the limited liability that most limited partners already enjoy.

Except as may be provided explicitly by the partnership agreement, a partner will have no personal liability–directly or indirectly–to any person, including a partner,for any obligation of the partnership incurred while the partnership is a limited liability partnership. This entity form is governed by Tex. Bus. Org. Code § 152.801(a); and also Tex. Bus. Org. Code § 152.801(b).

For the purposes of Section 152.801, an obligation is incurred while a partnership is a limited liability partnership if: (1) the obligation relates to an action or omission occurring while the partnership is a limited liability partnership, or (2) the obligation arises under a contract or commitment entered into while the partnership is a limited liability partnership.

We’ll discuss how you may qualify for this business form next time.

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