People dissolve business partnerships for many reasons. Sometimes, one party wants to retire or move on to other opportunities. All parties may wish to close down the business or sell it. In some cases, the business partners may have difficulty working together and decide to go their separate ways.
Dissolving a business partnership is complex. Ideally, at the time you formed the partnership, you created a partnership agreement. These agreements typically have a dissolution strategy that will guide you through the process. Whether or not a business partnership is in place, it’s important to contact an attorney well versed in business law. He can ensure that your interests are protected throughout the dissolution.
A business law attorney can help you draft a dissolution agreement. This agreement will address a variety of issues. You will need to have a third party valuation to determine the value of the business. After the business is dissolved, each partner will assume different liabilities and assets based on their percentages of ownership.
You will need to address some business law issues when dissolving the partnership.
- You probably have business licenses and permits in place. These will need to be discontinued or changed depending on the circumstances.
- You may need to terminate employees and ensure that they receive their final paychecks.
- Then, there will be other steps such as notifying customers and suppliers about changes in the business’ status.
- All parties will need to have a firm understanding of their tax liabilities concerning the company.
If you are continuing the business after the dissolution of the partnership, you will need guidance on restructuring. It may be in your best interests to form a limited liability corporation (LLC) to protect you in case of lawsuits or other financial crises. You may need to change policies within the company. It is a good time to create or revise employee handbooks. These help structure the relationship between the company and workers. A business law attorney can help you resolve the issues related to dissolution. He can also help you plan a strategy for the future that will ensure the company’s success.