A Quick Guide To Business Partnership Dissolution In California
Partnerships are dissolved for a lot of reasons. It could be because the business is failing or your relationship with your business partners has gone sour. It could also be totally harmless, such as leaving for personal reasons.
Whatever the reason, you can't just up and leave the company without following the necessary legal processes. So here's a quick guide to why you need to formally dissolve business partnerships, as often handled by our Laguna Beach Business Law Attorneys in California.
Why Do You Need To Formally Dissolve Business Partnerships?
Businesses entail assets. Debts may need to be settled, assets distributed, and requirements under the Uniform Partnership Act, which governs partnerships in the state, may need to be met. You can't just decide to leave, take your assets with you, and never talk to your former business partners again.
In short, when dissolving a partnership, there are essential legal considerations to make and liability-reducing procedures to take.
How Do You Dissolve A Business Partnership In California?
Ideally, a partnership should start with a written partnership agreement that spells out the conditions for ending the relationship if one or more parties decide it's time. If not, then you should follow the state's Uniform Partnership Act.
For matters such as dissolution, the written agreement will almost always require a vote, often requiring a majority vote or a half vote if only two partners are participating.