Starting a Limited Partnership in Dallas, Texas
Getting started on a limited partnership in Dallas, Texas can be a complex process3 min read
Getting started on a limited partnership in Dallas, Texas can be a complex process. With layers of regulations and the often-overlooked challenges of forming a business, navigating the process of forming a limited partnership can be daunting. Fortunately, the experienced lawyers of UpCounsel are here to help. Our team of attorneys is equipped to address the nuances of Dallas-specific law when forming your limited partnership, so you can rest easy knowing that your business is setting up right from the start.
What is a Limited Partnership?
A limited partnership (LP) is a type of business structure in which two or more people can own and manage the business. Generally, general partners are liable for debts and contractual obligations of the business, but the limited partners are not. Limited partners are usually only liable to the extent of financial contribution to the business.
The limited partnership structure is a great option for businesses that wish to take investments from third parties or when two or more partners wish to come together and start a business. This structure allows for the business to benefit from the contributions of more than one partner without any of the partners taking on full risk for the business.
Creating a Limited Partnership:
To start a limited partnership in the state of Texas, the entity must file a certificate of formation with the Texas Secretary of State. Most of the documents must notarized and accompanied by a filing fee. The certificate must include the name of the limited partnership, primary office address, registered agent and contact information, and the street and mailing addresses of each of the general partners.
Further steps must also be taken to officially create the partnership and become legally viable. A limited partnership agreement should be entered between all partners to define details of the relationship, such as capital contributions, ownership percentages, profit-sharing distributions, voting rights, management, and more. The limited partnership must also comply with additional ongoing business registration and regulatory obligations depending on the type of products and/or services the business provides, as well as local, state, and federal laws.
Why You Need Professional Legal Counsel:
Though the filing process for limited partnerships in Dallas is relatively straightforward, the process of setting up the partnership and executing the limited partnership agreement is best done with the help of a skilled attorney. Even though navigating the requirements of a limited partnership in Dallas might seem simple, the process is fraught with potential legal troubles if any of the details are overlooked.
Moreover, your attorney can help you structure the agreement in a way that is beneficial to all of the partners involved. Becoming a limited partner comes with potential risks, so it is imperative that your attorney go over the details of the agreement to ensure the limited partner is not exposed to liability beyond their agreed-upon contribution.
What Sets UpCounsel Apart:
At UpCounsel, we understand how intimidating the process of starting a business can be, which is why we are committed to providing the highest quality legal services at the most affordable rates. On our platform, you can find respected business attorneys with years of experience in the industry who can provide the counsel necessary to make sure your business venture is set up properly from the very beginning.
UpCounsel’s vast attorney network offers clients an unmatched level of convenience. Our lawyers are available to consult on demand to answer any questions and address any concerns making sure that you feel confident and secure. We also provide informational profiles of the attorneys on our platform that include client ratings and reviews of recent work.
Choose UpCounsel to Help Get Your Limited Partnership Started:
Starting a limited partnership in Dallas, Texas can be an intimidating process — but it doesn’t have to be. With the experienced attorneys of UpCounsel at your side, you can take the complexity out of setting up the limited partnership by working with a legal team equipped to handle the nuances of local business law. With UpCounsel, you have access to the highest quality legal services around, and with our immense convenience and affordable rates, there’s no reason to put off starting your limited partnership.