Category Archives: Business Entity Selection

Business Entity Selection Series: 4 – Limited Partnership

Today we continue on in our Business Entity Selection Series.  If you missed any prior posts, click here. What is a limited partnership?  Texas law defines a limited partnership as a partnership having one or more general partners and one or more limited partners.  See Texas Business Organizations Code Section 1.002(50).  General partners may participate in the control of the business but are not given any limited liability.  On the other hand, a limited partner is afforded limited liability, but may not participate in the control of the… Read More →

Business Entity Selection Series: 3 – General Partnership

Today we continue on in our Business Entity Selection Series.  If you missed any prior posts, click here. What Is a General Partnership?  Texas law defines a general partnership as “an association of two or more persons to carry on a business for profit as owners…regardless of whether the persons intend to create a partnership or whether the association is called a ‘partnership.’”  See Texas Business Organizations Code Section 152.051.  Importantly, the definition of “persons” is not limited to individuals, meaning that other legal entities such as an… Read More →

Business Entity Selection Series: 2 – Sole Proprietorship

We will kick off this series with the simplest, most widely used business structure, the sole proprietorship. What Is a Sole Proprietorship?  A sole proprietorship is simply a single individual engaged in business activity.  The  2012 U.S. Census of Agriculture reports that nationwide, just over 86% of farms are sole proprietorships.  In Texas, that number is even higher at 90%. Governing Law:  Unlike the other entities we will discuss in this series, the sole proprietorship is not governed by statute.  There is no provision in the Business Organizations Code to govern sole proprietorships…. Read More →

Business Entity Selection Series: 1 – Introduction

Today I am excited to kick off a new blog series that provides an overview of different business entity options for farmers and ranchers.  This was a topic that Amber Miller and I recently discussed on the Ag Law in the Field Podcast #5.  At presentations, people often ask me whether having a general partnership is a good idea or whether an LLC is the best business entity.  I wish it were that simple, but as with most legal questions, there is no magic answer to the question… Read More →