Partnership Dissolution Agreement

Partnership Dissolution Agreement

A business partnership is like a marriage. When things go well it can make your life so much better, but when it’s time to end you’ll be wishing you had a prenup.

Having a partnership dissolution agreement in place in the partnership agreement or written during the dissolution of a partnership does so much for you and your business.

Not only does it protect you from liability, it affects your future credit score and keeps your personal and business assets safe.

Still, what is a partnership dissolution agreement?

How do you write a partnership dissolution agreement?

Can you dissolve a partnership without one?

I’ll answer these questions and more in the article below.

Contact me today at sam@mollaeilaw.com with any other questions you have about how to write and use a partnership dissolution agreement to protect you and your business.

 

What is Partnership Dissolution?

A Partnership Dissolution happens when a partner leaves the business, thus ending the partnership.

There are a lot of reasons where a partner might voluntarily leave the business,

Types of Companies

Types of Companies

There is a wealth of decisions that go into forming a business in the United States. Arguably one of the most crucial in relation to taxation is the legal structure of your new business.

In addition to taxes, this decision plays a role in how much paperwork you end up dealing with and your ow n personal liability in the company. It even factors into how you can raise money on your company’s behalf.

The most well-known legal structures for a business include sole proprietorship, partnership, corporation, S corporation, and LLC. Limited liability partnership (LLP) is a newer development in the business world.

Fortunately, you do have the option of kicking off your business as a sole proprietorship and reorganizing your structure if you decide to take on partners. So, it isn’t set in stone.

Just make sure you notify the IRS if you make changes in the structure of your business.

Whether this is your first business venture, or you have rode this rodeo before, I highly recommend reaching out to an experienced business lawyer such as myself at sam@mollaeilaw.com.

Which Legal Structure Is Right for Your Startup?

The first and most important step is to determine which legal structure is suitable for your business needs. A startup’s business plan may change over time, and an owner should be prepared for all possible risks and liabilities the business may incur going forward.