Have you ever heard of anyone starting a business with the idea of ending it « sounds absurd doesn’t it? » Many people start businesses as a partnership because they need the support of one or more of the partners to make the bid are successful. No partner every thinks the organization will end in a dispute or problem. Every partner seems to feel safer having someone on their side or at the very least someone to share the responsibilities, burdens, and efforts of running the business. However, as the old saying goes, « All good things do seem to come to an end. »
Here are a few points to keep in mind when trying to dissolve the partnership.
1) Analyze the reasons why you want to dissolve the partnership.
Are the reasons justified? If it is just the fact that the two of you don’t get along then maybe it is time to rethink this process. Dissolving the partnership is not an easy task. Furthermore, for the most part, the only winners here are attorneys if you decide to go the legal route. You need to take a close look at your assets, customers, inventory and business objectives and realized what a dissolution of a partnership would mean to the business. Will it still be able to operate as an organization? Will the business inevitably fail as a result of a loss of this relationship? Just be sure to analyze the situation before attempting to dissolve the business. If you’re 100% set on this process than we can begin.
2) Download a simple dissolution of business partnership agreement from legal form selling sites. Yes, that’s right, there are do-it-yourself, easy to use, simple legal form templates that you can use to dissolve a business partnership. Good websites offers very well organized agreements that help you dissolve the partnership and avoid the unwanted and rather expensive attorney fees associated with dissolving a business partnership. The legal form outlines everything you need to understand and to know while at the same time dividing up the assets, revenue, debts, inventory, and expectations for the future of the business if there will be any. Often times when considering the efforts were acquired to dissolve a business partnership, they fail to realize that there is still a business that needs to be run. Do not make this mistake. Realize that just because the partnership does not work out it does not mean that the business cannot continue forward.
3) Notify the people that you do business with. Taking the time to send out an intelligent letter or e-mail letting the vendors and customers that you work with note that the business is going to a problem can actually help you more than you think. Often times when a partnership with is all the owners think it is the best solution to keep the issue quiet. This is not always the best idea. Businesses grow and survive based on honesty. Taking the time to be honest with your customers will give you an opportunity to ensure that they were with you for life.
4) examined the leases, contracts, loan agreements, debts, assets, and other commitments associated with the business. You may need to take legal action after the business it is all to deal with these items. Especially if you have a personal guarantee that any agreement, lease, contract or other obligation. Realize that just because you dissolve the partnership it does not mean that you are free from any personal obligation you have agreed to.
5) like a marriage, it is always a good idea for all the parties to get along in the event of a divorce. To dissolve a business partnership it is crucial that both or all partners get along and can discuss the details of the dissolution openly and honestly. Failure to do this will ultimately result in the added expense of hiring an attorney. We all know who gets paid when we hire an attorney. The bottom line is, work closely to resolve the issues without having to become adversaries. Remember, you started the business working well together. There is no reason why you can’t end it just as well.
Be sure to take the time to visit easyagreements.com and check out the various documents available online that have to do with a business partnership. The site can offer you everything from the minutes to letters and notices associated with the partnership.