OK, so I have a question about some of the requirements is making sure that I'm doing everything legally. My niece and I just formed a partnership together for the purpose of investing in real estate. Our plans are to begin with wholesaling and/or fix and flips and eventually begin to buy and hold in the companies name. At this point, we are simply structured as a General Partnership. I have already filed for an EIN with the IRS and we have our DBA from the county. What I'm not sure about is whether or not we are required to file with the Texas Secretary of State. I have been researching this and I'm "pretty sure" that we aren't required to unless we were a Limited Liability Partnership (which we are not), but I was just hoping that someone might be able to verify this for me and help ease my mind. I just want to make sure that we are completely legal and legitimate.
A partnership is fine at the start, However, You will really need to call the Texas Secretary of State and verify for yourself, Do not gamble on the Info you get on the internet, Secondly, You need to safe guard your personal assets, Meaning you need to be at least an LLC, just in case things do not work out, If you are an LLC, and you have financial problems at any point, The LLC will protect you.
That was actually our plan, to become an LLC, once we've starting dong enough deals or holding properties, that the business can support itself. You also have an excellent point on the Sec. of State question. One phone call can save us a lot of headaches and hassles later. If we're not required to register with them, then that's fine. But, if we are, I'll already be on the phone with their office. Thanks @Zachary Tunstall.
Get a good insurance policy and remember an LLC will not protect your assets like the Gurus teach.
You are very welcome James, and I wish you all the best....Zack.....And remember it's better to ask the dumb question, than to gamble on the un answered ones. And remember get everything in writing, sorry but trust no one
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