What exactly is a “partnership” under the laws of the State of Texas? As a starting point, a PARTNERSHIP may arise when two or more individuals become associated in a common venture for the purpose of making money. This association of individuals would NOT be a partnership if appropriate documents are signed which provide that the joint owners instead intended to create a different business structure – like a Corporation or a Limited Liability Corporation (LLC). Basically, in the absence of any documentation to the contrary, two or more associated individuals may be considered partners in the eyes of the law. Since the individuals are considered Partners in the business venture, they each have the ability to legally bind the business venture and the other Partner (or Partners). Since the individuals are considered[…]
