Everything pretty much has an end, whether we want it or not. This extends over to business relationships as well and there may be times where your partner doesn’t want to stay in the business. Now what do you do in such situations?
This article will be setting out ways by which one can go about business dissolution. Read the article until the end to know the tips by making use of which you can make out that your partner is no longer interested.
Business Dissolution
Here are a few things you must consider while your partner decides that it’s time to go separate ways.
- Come to a decision quickly: There is no point dragging out the topic and things related to it. Once this topic of business break is sparked off, it is better to do it swiftly and in a way it is amicable. Mutually decide on a date on which your partner and you will officially go different ways and hold with the date.
- Discussing long term plans: Ask whether your partner will be going for another business or partner and be open-minded about it. Both of you want to be sure that things don’t take a legal turn at a later stage. If possible, be vocal about your plans as well with this dissolution. Transparency between two people is as critical as any other thing so make sure whatever your partner and you are discussing, doesn’t lack any transparency.
- Make a call to business partnership lawyers: Before going separate ways, it is preferable to have these things reviewed by business partnership lawyers. An attorney will give the plans a go-ahead after going through your formal business documents and agreements signed by the parties involved. In addition to that, the attorney will also warn and advise you of any legal conflicts.
If there is any exit strategy that has already been mentioned by the parties involved, the attorney will skim through it and offer some advice on how you can move forward with it. Open up about any non-compete agreements regarding ownership of intellectual property that you may have given a nod to.
- Protection of assets: The best advice would be to freeze your credit cards and accounts until the “breaking up” has been given the mutual nod. This is important in the sense that nobody would be responsible for the partner’s bad decision but him.
- Make sure your partner returns company assets: Double check that your partner returns company property, technology datasets, intellectual property or confidential company information. Failing to this may lead to legal liability and strung out cases that would affect the partner.
- Relying on an expert or 3rd party: Avoid negotiating the listed terms and separation agreement without involving any expert to help you. Ideally, a neutral third party like an attorney or CPA is needed to help you figure out the value of your business and the assets. Furthermore, this third party can very well assist with the transaction between your partner and you.
The expert acts as a buffer between the partners in case there’s any personal or emotional issues.
To tease out the crux, if you bring in any expert or neutral party, both of you will have the surety that the division of assets and other things are just and there is no bias. Don’t forget to consult an attorney to guide you through your legal bases like tax issues, and how you should go about the same. If you reside in San Diego or areas nearby, look up business attorney San Diego to find the best attorney to breeze you through the separation.
- Do not be bitter and say thanks: You don’t know what the other person may be feeling about this dissolution so it is always better to express your gratification to your partner and how they equally helped make the business skyrocket and reach great heights.
Final words
The above discussed articles deal with the issue of business dissolution or what you can do when your partner decides to call it quits. The article heavily emphasized involving any legal representative or attorney as we may them to succor your partner and you in such odd times.
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