Business partnerships sometimes don't work out. You should make sure that you follow all the legal requirements to properly dissolve your partnership by following state requirements and the partnership agreement provisions regarding dissolutions. If you are dissolving a partnership, the east TX business attorneys at Boon Calk Echols Coleman & Goolsby may be able to help.
It is essential to dissolve a partnership properly to ensure that you don't end up being responsible for your partner's share of the bills or vice versa. Partnerships may end with one partner buying the other one out. The requirements for dissolving a partnership will depend on the type of corporation that was formed when the partnership was created.
State law may require you file a statement of dissolution when you end a business partnership. There may be a waiting period from the time that the statement is filed until the partnership is officially dissolved--typically 90 days.
If you are wanting to stay in the business and your partner is getting out, an attorney may be able to help you reorganize the business by helping you create a new corporation after the old one is dissolved. Many sole proprietors choose to create an limited liability corporation (LLC) or professional association (PA) in order to protect their personal assets from business creditors.
An attorney can help you interpret any terms in an agreement that you do not understand that may affect the partnership. If the agreement is silent about issues like who will take over which work if the partnership is split up and how clients will be notified, an attorney can advise you about how to proceed according to state law.
If you have questions about dissolving a partnership, contact the east TX business attorneys at Boon Calk Echols Coleman & Goolsby for more information. It is a good idea to bring important documents related to the business with you to the initial meeting such as the partnership agreement, any lease agreements or other contracts and tax documents.