Forming an LLP

• 1). Prepare a partnership agreement to create a partnership entity. The partners must all agree and vote to adopt the partnership agreement. A partnership agreement that is signed by all the partners creates the partnership organization.
  
  
• 2). Adopt a resolution to register the partnership as an LLP. The office of the Secretary of State in Texas is the government agency that accepts business entity filings. The partnership must agree, as an organization, to register as an LLP with the state.
  
  
• 3). Obtain the necessary insurance. A Texas limited liability partnership must show evidence of financial responsibility by purchasing and maintaining liability insurance in the amount of $100,000. This requirement can be satisfied by depositing the same sum in escrow or obtaining a letter of credit covering the amount.
  
  
• 4). File an application to register your LLP with the office of the Secretary of State. Use Form 701 as the application for registration. The filing fee is $200 for each general partner of the organization. The registration lasts one year.
  
  
• 5). Renew your registration every year with form 703. The registration can be renewed before it expires. The office of the Texas Secretary of State will usually send out a renewal notice. Renewal is the responsibility of the LLP and the Secretary of State has no obligation to notify the partnership of the renewal period.