Partnership Agreements

Business Partnership Attorneys Serving Texas

The saying “an ounce of prevention is worth a pound of cure” is as true today as it was when it was first written by Benjamin Franklin in 1736 – and especially so for professionals who plan to partner up when forming or restructuring a business. At Hendershot Cowart P.C., we take that adage to heart, and provide the comprehensive, insight-driven counsel needed to create partnership agreements for clients in a range of industries.

For decades, our firm has drafted, negotiated, and reviewed partnership and shareholder agreements containing an array of contractual provisions. We have also litigated over various disputes to enforce or defend against claims – many of which could have been prevented or mitigated had partners put proper protections in place.

Have questions about a partnership agreement or any other business contract or dispute matter? Call (713) 909-7323 to speak with a lawyer.

On This Page:

Types of Business Partnerships in Texas

In Texas, there are four types of business partnerships:

  • General Partnership
  • Limited Partnership
  • Limited Liability Partnership (LLP)
  • Joint Venture

The first, a general partnership, is the most basic. When you enter a general partnership, you and your partners are personally liable for all debts. With taxes, you account for general partnership income in the same way as any personal income, but general partnerships do not pay franchise taxes.

Next, there is a limited partnership. Under a limited partnership, there are both limited and general partners. Like a general partnership, the general partner is liable for all debts. Limited partners are only liable for the debts associated with their investments. Both partners account for income from the business, though the limited partner is only responsible for the income generated from their share of ownership. A limited partnership does pay franchise taxes.

Beyond a limited partnership, there is a limited liability partnership, or LLP. An LLP is usually used by businesses in fields with high liability risk and partners only have exposure to that portion of the business that they directly created. They are not held responsible for another partner's debts. Like a limited partnership, an LLP pays franchise taxes.

A joint venture is a special type of general partnership that normally only lasts long enough to execute a single transaction. Joint ventures are common in real estate and foreign market investments. Partners are fully liable for debts and report income just like a general partnership.

We Draft Comprehensive Business Partnership Agreements

Partnership agreements serve several purposes – from addressing methods of valuation and resolution should future disagreements or disruptive events arise, to outlining responsibilities and obligations and a company’s core mission. Partnership agreements are powerful tools to prevent and mitigate the risk of disputes, as well as encourage solidarity.

Key issues addressed by partnership agreements may include:

Ensuring partnership agreements effectively contain conflict, avoid disputes, and minimize disruption, lost value, and the toll of litigation is a complex task. Working with experienced attorneys can help you create clear and enforceable contracts tailored to your business needs.

Our firm has experience representing clients in many different industries and businesses, including difficult areas subject to heightened risk and regulatory scrutiny, such as health and medical businesses, oil and gas, construction, and more.

Enforcing Partnership Agreements in a Partnership Dispute

Even with the most carefully crafted agreements, disputes and conflict can still arise. When they do, legal representation is critical. Our team has experience resolving a range of shareholder and partnership disputes from both sides of the aisle – enforcing existing contracts or asserting legal rights, and defending against claims and allegations.

Partnership agreements, if they exist at all, may or may not always address the particular business owner disputes which arise within a company. In addition to helping create comprehensive partnership agreements proactively to prevent such conflict, we also provide responsive representation needed to resolve or litigate disputes with custom-fit solutions.

Start Your Partnership on the Right Foot. Call (713) 909-7323

Hendershot Cowart P.C. is a Houston-based law firm comprised of talented, award-winning trial lawyers who know the stakes of starting a partnership, and the costs of making mistakes. With over a century of collective experience, our firm is available to assist current and prospective business owners throughout Texas and beyond in creating the contracts they need, or litigating and resolving disputes and disagreements.

Call (713) 909-7323 or contact us online to discuss your business law needs.

Why Choose Our Team? Unwavering Commitment to the Success of our Clients
  • We Shoulder the Legal Burden.™
    And let you get back to business.
  • We Want to Be Your Law Firm for Life.
    We take a vested interest in our clients' success – from start to finish.
  • We Believe in Prompt, Personal Attention.
    As a boutique law firm, we unite real experience with personal attention.
  • We Serve Clients Throughout Texas and the Nation.
    We handle matters from the Red River to the Rio Grande and beyond.
  • In Business Since 1987.
    Let us put the full force of our 100+ years of combined experience to work for you.

What Our Clients Say

  • “These folks represented me well and Ray was awesome. Ray was extremely easy to communicate with and was easy to get ahold of Ray also made himself available when I had questions or needed clarification on things. 10/10 would recommend.”
  • “Philip has been nothing short of amazing! He genuinely cares about his clients and is very accessible, a quality that is rare to find in other lawyers. He is meticulous and efficient, which are great qualities to have. I cannot recommend him enough.”
  • “Ian McNeill is a fantastic lawyer and a great person. I had the pleasure of working with him closely on a high level PSM OSHA project, and our company's top leadership group was very impressed with the outcome of the project.”
  • “Great communication and extremely knowledgeable team.”
  • “The Hendershot Cowart Law Firm has been and will continue to be part of our legal team. They provide the utmost professional services towards our South Texas medical practice. Trey Hendershot and Keith Lefkowitz are very receptive, skilled and amazing...”
  • “My business partner and I had a very complex time sensitive situation with a breach of a contract on a real-estate transaction. We hired Ky Jurgensen to help with the case and he took action immediately, same day we called he went to work.”

We Are On Your Side

Schedule Your Initial Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please enter a message.