Here is how to dissolve a partnership with minimal conflict. Partnerships are some of the most common business structures utilized, yet even a successful partnership will often come to an end. The dissolution of a partnership is not unlike a divorce. There can be good breakups or those fraught with conflict. There are several types of partnerships including general, limited and limited liability. Most partnerships are protected with a contract, but it is not a requirement. It may be easier and more harmonious to dissolve a partnership in which a contract is in place because a well-written contract addresses dissolution.
Review the Contract
The initial agreement between parties may address how the partnership will be dissolved, should that occur. Review the document to ensure that you understand the terms of the contract that must be followed when ending the business. If the agreement does not speak to dissolution or does not address your concerns you should consult with a business attorney to learn the steps that must be taken. Keep the lines of communication open with your partners to ensure a smooth result.
Determine Your Needs
Business planning is part of creating a partnership and planning is also needed to dissolve it as well. Determine what you want to accomplish with the dissolution. This often requires you to review the long-term consequences of decisions that you make today. Once you understand what your needs are you can confidently work towards dissolving the partnership in a way that helps you further your goals.
There are a number of various concerns that must be addressed in the dissolution of a partnership. All parties need to feel they are being treated fairly and therefore everyone should be involved in making the important decisions of ending the business. Everyone may have different and separate objectives and these should all be determined and properly accounted for in a final agreement. Remember that while you want to protect your own interests you must also allow your partners to be heard.
Consult with an Attorney
The dissolution of a business may seem rather straightforward but it can actually be quite complicated. There are many decisions that need to be made so it is essential to know your options and the long-term consequences so you can make the best choices possible. You must make sure that everything is done legally so that it cannot be challenged later. An experienced business lawyer understands the complex issues of business dissolution and will help to guide you through the entire process. Having an attorney direct the process ensures that all loose ends are tied up so once complete you will be free to move forward to new frontiers.
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding How to Dissolve a Partnership with Minimal Conflict, or any other commercial litigation matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to udallshumway.com, or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.