What to Do When Ending a Business Partnership

//What to Do When Ending a Business Partnership

What to Do When Ending a Business Partnership

When starting a business, it’s almost natural and necessary to find yourself a business partner. They are a great asset when starting off in the unknown. It’s also a great idea to have your lawyer in Tampa involved when vetting a potential partner or when starting up a business. They can help provide great experience and insight for you. However, partnerships do end for whatever reason. So, make sure to keep your lawyer in Tampa involved to ensure a clean break up. Avoid any lawsuits or fines, even years later by having your lawyer in Tampa oversee a favorable resolution.

One of the most important things for a clean break is to have a partnership agreement. This outlines who will run the business and can even include a specific process for dissolving a partnership. Therefore, it’s best to have this as early on as possible. Another thing to do is to sit down with your partner and go over how to dissolve the partnership. Decide on the terms together and what obligations need to be honored. Once everything has been hashed out, draft a partnership dissolution agreement to set the terms out in writing. This will be in everyone’s best interest.

So what about your clients and suppliers? Well, it’s important to give them notice. Let them know about any new arrangements and that the partnership is done. It is also important to deal with any permits, licenses, registrations, taxes, contracts, bank accounts, and any other agreements. All involved parties should be notified of the partnership dissolving.

Also, make sure that all outstanding debts are paid. All partners should have their original investment returned. Once that money is accounted for, then any remaining assets should be given to each partner. However, if you or your partner wants to continue the business, you could buy out your partner or sell your share to them.

Dissolving a partnership doesn’t mean it has to end on bad terms. Speak with your partner about your wishes and what the next steps should be. Make sure to consult with your lawyer to advise you on what you should do. They will have the experience and expertise to help ensure a smooth ending.

Check out our blog for more tips and info. Contact us today about meeting one of our lawyers!

By | 2018-03-14T20:07:47+00:00 March 9th, 2018|Blog|Comments Off on What to Do When Ending a Business Partnership

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