You and your team have a great idea for a new Texas-based business, and you’re ready to take it to market. Use this quick guide to make sure you’ve covered all your bases to form a partnership.

 

To file a partnership in the state of Texas, you will need to follow these general steps:

 

Choose a Business Name

Select a unique name for your partnership that complies with the Texas Secretary of State’s naming requirements. Ensure the name is distinguishable from existing businesses in Texas.

Elect a Registered Agent

Designate a registered agent who will be responsible for receiving legal documents and official correspondence on behalf of the partnership. The registered agent must have a physical address in Texas.

 

Draft a Partnership Agreement

Draft a partnership agreement that outlines the rights and responsibilities of each partner, profit and loss distribution, decision-making processes, and other relevant details. While it’s not mandatory to have a written partnership agreement in Texas, it is strongly recommended to avoid potential disputes.

 

Obtain an Employer Identification Number (EIN)

Apply for an EIN from the Internal Revenue Service (IRS) if your partnership will have employees or if you plan to elect corporate taxation. You can apply for an EIN online through the IRS website.

 

File a Certificate of Formation and pay the filing fee

Prepare a Certificate of Formation, which is the official document required to establish a partnership in Texas. The certificate must include essential information about the partnership, such as the name, registered agent’s name and address, purpose of the partnership, duration (if not perpetual), and signature of a general partner. As of September 2021, the fee was $750, but it may have changed. You can check the current fee on the Texas Secretary of State’s website.

 

Publication Requirement (if applicable)

In Texas, partnerships are not required to publish a notice in newspapers like corporations. However, if you wish to establish a “filed partnership,” you may choose to publish a notice in a local newspaper to provide public notice of your partnership’s formation.

 

Obtain Permits and Licenses

Depending on your partnership’s activities, you may need to obtain specific permits or licenses at the federal, state, county, or city level. Check the requirements of your industry or consult with the appropriate licensing agencies to ensure compliance.

 

Conclusion

It’s important to note that while this information is accurate as of my last update in September 2021, requirements and fees can change over time. Therefore, it is advisable to consult the official website of the Texas Secretary of State for the most up-to-date and accurate information regarding partnership filings in Texas.