The sole proprietorship makes no legal distinction between personal and business debts, and it does not require a separate income tax return. A sole proprietorship is operated under the name of the owner, or an Assumed Name Certificate must be filed with the county clerk. Assumed Name Certificates are discussed later in this section. General Partnership A general partnership exists when two or more individuals or businesses join to operate a business. Under a general partnership, a separate business entity exists, but creditors can still look to the partners' personal assets for satisfaction of debts.
General partners share equally in assets and liabilities.
A general partnership may be operated under the names of the owners, or a different name. In either case, an Assumed Name Certificate must be filed with the county clerk. A limited partnership is a partnership formed by two or more persons or entities, under the laws of Texas, and having one or more general partners and one or more limited partners. General partners share equally in debts and assets, while limited partners have limited debt obligations. A registered limited liability partnership is a general partnership that has been registered with the Secretary of State.