Form a Partnership in Texas
Everything you need to know about forming a Partnership in Texas. Filing fees, requirements, timeline, and step-by-step guidance.
How to File
Choose Business Name
Select a name that complies with Texas naming requirements and is distinguishable from existing entities. Consider conducting a name search.
1-2 hours
Draft Partnership Agreement
Create a comprehensive partnership agreement outlining profit sharing, management duties, and dissolution procedures. While not legally required, it's highly recommended.
3-5 hours
Obtain EIN from IRS
Apply for an Employer Identification Number from the IRS for tax purposes and to open business bank accounts.
30 minutes
Register for State Taxes
Register with Texas Comptroller for applicable state taxes including sales tax if selling goods or taxable services.
45 minutes
What's Next After Filing
Once your Partnership is officially formed, you'll want to complete these important steps:
- •Obtain Business Licenses — Research and obtain any required federal, state, or local licenses and permits specific to your business activities.
- •Open Business Bank Account — Establish a business bank account using your EIN and partnership agreement to maintain separation of business and personal finances.
Advantages
- ✓No state filing fees or annual reports required in Texas
- ✓Pass-through taxation avoids double taxation
- ✓Simple formation process with minimal paperwork
- ✓Flexible management structure and profit distribution
Considerations
- •Unlimited personal liability for all partners
- •Partners are jointly and severally liable for business debts
- •Potential for disputes without formal agreement structure
Annual Obligations
What OpenChamber Does
We don't file paperwork for you — we guide you through doing it yourself, which saves money and helps you understand your business from day one.
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