Is a Partnership Right for My Business?
Whether you're starting a company from scratch or thinking of expanding the one you already have, you
may want other people to share the load and reap the rewards. A partnership is a type of business entity
in which two or more partners share the ownership and operating responsibilities of a company. If the
company is successful, the partners will share the profits. If it is not, they will share the losses.
If you're interested in learning more about the benefits of a business partnership, contact Texas Legal
Entities by calling 512-472-2431.
The Advantages of Partnerships
Unlike in smaller countries, the United States does not have federal laws concerning the obligations
and responsibilities of partnerships. In general, partnerships are subject to more favorable taxation
laws than are corporations. In a corporation, there is usually a dividend tax levied on the profits
the company makes, before these profits are distributed to the investors. Partnerships, however, are
not taxed for this money, and the profits are distributed to the partners first and then taxed as income.
Partnerships in Texas
If you are forming a partnership in Texas, you will need to do the following:
- Choose a name under which to do business. You'll need to file with the county clerk in the county in
which you're doing business.
- A partnership agreement laying out the ground rules for the partnership may be beneficial.
- Discuss your tax obligations with a business lawyer, and file accordingly.
- If you're hiring any employees, you'll need to file with both the IRS and the state.
Contact Us
If you'd like to learn more about partnership law, contact Texas Legal Entities by calling 512-472-2431.
At any time, please feel free to ask us a question. It's FREE!