How to Dissolve a Business Partnership

Nowadays, having your own job is not just enough because the economy is stable and the prices of goods are always on a rise and fall. So, here now comes the business in the scene. This is one of the best ways to make sure that you will still be financially stable in the end because your money will grow and reproduce by means of rendering service or selling products to a certain market.

But in starting a business, there are people who are afraid to start all by themselves. To knock down this problem, there is partnership wherein two people will be running the business sharing each others’ start up costs and expenses s well.

Although is said that two is always better than one, sometimes business partnerships just come to an end especially if both of the parties do not agree on a certain business issue. If one of the parties decide to just do things his own way, there is still a way to that through the process of dissolving a business partnership. In order to make this process successful, you need to have a business attorney to straighten things out.

Steps to Dissolve a Business Partnership

In this business process, before you go for a partnership dissolving you must first analyze why you need to do that. Whatever the situation, the circumstance or the reason is, you must stand firm on your decision and you must also know that aside from being an expensive one, dissolving a business partnership is also a very lengthy process.

After your final decision, you need to get information with regard to the know-how in this process. The website of the state government will provide you all the information and the form for the dissolving of your partnership. After that, you need to print it out and fill it out. You and your business partner need to sign it for completion purposes.

When the business has already been dissolved, the next step that you need to take is to file a dissolution statement. This will pave the way for the third party to know that you or your partner no longer has the right to engage into any binding transactions. It is usually on the tenth day after the business partnership dissolution when the third party will know about its filing.

You must also provide notifications to the people whom you do your business with. This includes your suppliers, clients and customers. Of course, the one who made the first move in initiating the dissolution will be the one to announce it. If you have a plan to start a new company, you must also include the important information regarding it.

To make sure that the dissolution is done in a legal process, you must also need to conduct a careful examination of the loan agreements, contracts and leases as well. If something had been missed out, you will be filed a lawsuit and this can take the dissolution a lengthier time even more. So, be very careful in following the business agreements.


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