Partnerships are Too Easy

You might have created a partnership accidentally. Texas law under the Business Organizations Code Section 152.051 states that a partnership is created when an association of two or more persons to carry on a business for profit as owners.” Tex. Bus. Org. Code Sec. 152.051(b). That means assets or property used to benefit the parties might be partnership property even if you only thought you were lending such asset or property temporarily. When I was 16 a friend and I walked into the local credit union and opened a joint bank account. You are probably thinking, “yea right.” It’s true. No parents required. My point is just how easily it was for me to accidentally decide that I would be responsible for his debts, and he would be responsible for mine. Each has unlimited personal liability for the others actions. That is what happens when two or more business owners join together for a common purpose. They create a partnership whether they wanted to or not. I suggest the next time a buddy asks you to come with him to the bank you tell him you have to call your lawyer first.

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