Partnership Agreement Lawyer in Houston, TX

No. Texas law recognizes oral partnership agreements, and a partnership can exist with no paperwork at all. Notarization isn't required for a partnership agreement to be valid. Still, an oral agreement is hard to prove and easy to recall differently years later. A written, signed agreement is the only reliable way to show what partners agreed to about ownership, money, and exits. Some partners choose to notarize signatures for extra proof, but it's the written terms that protect you.

Texas default rules fill in the gaps. General partners share profits equally, have equal votes in ordinary decisions, and can be personally liable for partnership debts. Default rules also govern what happens when a partner withdraws, dies, or files bankruptcy, and they rarely match what partners expect. Disputes over contributions, salaries, and the business's value become much harder to resolve. A written agreement replaces those defaults with the terms you actually chose. It's never too late to sign one, even after years in business.

Start with ownership percentages and what each partner contributes, whether cash, property, or work. Then cover roles and decision-making, including which decisions need everyone's approval. Set how profits are shared, when money is distributed, and whether partners draw salaries. Add buy-sell terms for death, disability, divorce, retirement, and voluntary exits, with a clear price formula. Finish with non-compete or non-solicitation terms where allowed, deadlock rules, and a dispute process such as mediation before anyone goes to court. Most of all, write down what happens when partners disagree.

They serve the same purpose for different business types. A partnership agreement governs a partnership. A Texas LLC's governing document is called a company agreement, which most other states call an operating agreement. Both set ownership, management, profit sharing, and exit rules. If you and your partners formed an LLC, your company agreement is your partnership agreement. Francisca drafts both and makes sure the document matches the type of entity you actually have. Using a partnership template for an LLC is a common and costly mismatch.

A buy-sell agreement sets what happens to an owner's share when certain events occur, such as death, disability, divorce, retirement, or a decision to leave. It names who can or must buy the share, how the price is set, and how the payment is made. Many owners fund buyouts with life or disability insurance, so cash is there when it's needed. Buy-sell terms can stand alone or sit inside a partnership or company agreement. They work best when coordinated with each owner's estate plan.

For most Houston co-owners, yes. A general partnership can leave each partner personally liable for business debts, while an LLC generally protects owners' personal assets from the company's debts. An LLC can still be taxed like a partnership, so the tax picture often stays the same. The partners' terms then go into a company agreement. Francisca can handle the business formation and the agreement together, so the structure and the terms line up from day one. Existing partnerships can convert to an LLC too.

Your agreement decides, if you have one. Without buy-sell terms, a deceased partner's heirs or a divorcing partner's spouse may end up with rights in the business, and a partner who leaves may be owed a payout you can't afford. Well-drafted terms set who buys the share, how it's valued, and how it's paid over time. Because Texas is a community property state, divorce deserves its own clause. Each owner should also coordinate with estate planning for business owners.

Start by putting a value on each contribution: cash, equipment, customers, expertise, and ongoing work. Many partnerships separate ownership from pay, so a partner who works full time gets a salary while ownership tracks investment. Vesting schedules can tie a working partner's ownership to staying with the business. Some owners use equity participation agreements to reward key people without making them full partners. Francisca helps you test the numbers before anything is signed. Revisit the split as the business grows.

Yes, before it reaches court. Francisca reviews your agreement and records, identifies each owner's rights, and works toward a resolution through letters, special meetings, buyouts, or settlement agreements. Many owner disputes end in a negotiated buyout once both sides see their options clearly. This work falls under her business dispute resolution services. If a lawsuit becomes necessary, she refers you to trusted litigation counsel. Acting early, while partners are still talking, usually costs far less than waiting. Keep records of contributions, decisions, and payments in the meantime.