Limited Partnership

A limited partnership is a partnership that involves partners that do not have the obligations or duties of general partners by reason of being limited partners. In a limited partnership, there will be one or more general partners and one or more limited partners. Partners may be individuals, partnerships, corporations, and any other type of legal entity.2 To form a limited partnership, the partners must enter into a partnership agreement and file a certificate of formation with the Texas Secretary of State.

Limited partnerships are subject to state franchise tax. The filing fee for a certificate of formation for an LP is $750.