Going into business with someone has its advantages and disadvantages. Having a partner can make owning and operating a business much easier, as the duties and responsibilities of it fall on more than one person’s shoulders. However, not all partnerships last the test of time, and the need to dissolve arises. If you are a business owner in Texas and you need to dissolve your business partnership, there are specific things you need to do to get it done properly.
Reasons to dissolve your partnership
There are a lot of reasons why a business partnership may need to be dissolved. You and your partner may have a falling out. You or your partner may want to move on to different things. The list can go on.
Does it mean the end of your company?
Dissolving a partnership does not necessarily mean the end of a business. The partner wishing to leave may be willing to accept a buyout. Whether the business dies ultimately depends on the wants of both parties and whether a fair agreement can be reached.
What you need to do
Regardless of whether the business stays alive or shutters, certain things need to be done when a partnership is terminated. The change needs to be reported to the state. Taxes need to be filed and paid. If the business is closing, assets need to be sold and funds divided. Creditors need to be contacted and debts paid. This list, too, can go on, depending on whether you and your partner are both wanting out or if one of your wants to keep things going.
The way you go about dissolving your business partnership is likely something you’ve already predetermined and spelled out in your partnership agreement. If you don’t have such an agreement in place, as some smaller business owners in Texas do not, it may prove a more difficult task to work through the dissolution, as negotiation and sometimes litigation may prove necessary. With or without a partnership agreement in place, when it comes time to dissolve your partnership, legal counsel can help you get through it as quickly as possible. To learn more about how an experienced business law attorney may prove helpful with this, please take a moment and visit our firm’s website.