Ending a business partnership in California can be stressful and time-consuming, but there are steps that individuals can take to make the process easier. By evaluating their options and coming to an agreement, the partners can potentially split without ending the business or destroying their personal relationship. Before giving up on the business altogether, here are some options that both parties should consider.
Ways to end a business partnership
Before they do anything else, both parties should consider whether they made a partnership agreement before they started the business. If they did, the agreement should contain instructions that allow both parties to go their separate ways. If not, the former partners will have to consider other options that might involve consulting a business litigation attorney.
In some cases, one individual might be able to buy out the other party and continue the business with a different partner. If that’s not successful, they may be able to sell the business although their former partner might have to be bought out of their share. Ultimately, the parties will need to create a plan that guides them through the dissolution process. A dissolution plan includes a timeline for filing taxes, making final payments and getting in touch with related parties like customers, employees and shareholders.
Where to go for further assistance
If both parties are having trouble coming to an agreement, an individual might wish to speak with an attorney about business litigation. An attorney might be able to answer their questions, guide them through the dissolution process and help them negotiate a fair settlement with their former partner. In the event that a case makes it to court, the attorney might help them present a strong case for them to maintain control over their side of the business.