Do you need to dissolve your partnership?
If you want to dissolve your partnership and get out of the business you have, it doesn't need to be a difficult process.
How do you go about doing that? Here are the steps you need to know in order to dissolve your partnership:
- Reread your partnership agreement. Businesses typically have a formal legal contract that outlines how to dissolve the business. Look at these steps and follow them closely. If there's any confusion speak to a business litigation attorney. If you do not have a formal partnership agreement, then the first step to dissolving the partnership is to inform your partner of your intent.
- Schedule a meeting with your partners to discuss the dissolution. If all the partners are on the same page then it will make it easier to resolve any issues pertaining to the dissolution. Formally outlining what is needed to make the dissolution happen will make what could be a complex matter and easy process. Businesses have liabilities and debts that would need to be resolved at the time of dissolution. If the other partners are not in agreement about these issues, you may need to consult with a business litigation attorney.
- File notices to inform others that your business is in the process of dissolution. File your notice with the state and the IRS. Additionally, you may need to give your employees and landlord notice of your business dissolution. Others that you may want to consider giving notice to include customers and vendors.
- Now that you're well into the process of dissolving your business, settle any final debts the company may have. Close any business accounts that are still left. Review your partnership agreement to ensure that you followed all the protocols. The partnership agreement may outline how to distribute funds, property or any other assets.
Again, if you have any concerns about any part of dissolving your partnership, consult with an experienced commercial or business attorney.