Weiner Law Group LLP
Call Us Today For Your Free Consultation
866-899-1138

Three Ways to End a Business Partnership


handshake.jpg

Business partnerships, like marriage, do not always end as planned. Some business relationships work as well as one may hope and the business thrives. Others become contentious and partners realize it is best to go their separate ways.

Which leads to one big question -- how do business partners dissolve the partnership?

Partnerships are generally legal relationships. These are business structures that result from drafting various legal documents. Although it is not wise to simply walk away from the partnership, there are ways to end the business relationship wisely. Three examples include:

  • Buy out a partner. One option involves buying out a partner's interest in the business. This process generally involves the need for a business valuation before negotiations can move forward. Ideally, the business partnership agreement will include a buy-sell agreement. This agreement should provide guidance on how to move forward. If an agreement is not present the partners would need to agree upon an acceptable process before moving forward.
  • Sell to a partner. In contrast, you could use the same process to sell your share to your business partner.
  • Dissolve. You and your business partner could also agree to dissolve the business. This process generally involves drafting a dissolution agreement and then following through with the terms outlined in this agreement.

It is important to note that additional legal issues can arise during the dissolution of the partnership agreement. Tax obligations are one example. As such, it is wise to seek legal counsel experienced in the termination of partnerships to help navigate the process and mitigate the risk of surprises.

No Comments

Leave a comment
Comment Information
Contact Us For Legal Service That's Above And Beyond
Email us for A response

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Weiner Law Group LLP

Contact Us For Your Best Defense

Contact us online or at 866-899-1138 to find out how we can help you with your legal matter. Let us provide you service that's above and beyond your typical defense firm.

Office Locations

Map Map Map Map

Parsippany Office
629 Parsippany Road
Parsippany, NJ 07054

Toll Free: 866-899-1138
Fax: 973-403-0010
Parsippany Law Office Map

Bridgewater Office
1200 Rte. 22 East
Suite 10
Bridgewater, NJ 08807

Phone: 732-399-9710
Bridgewater Law Office Map

New York Office
90 Broad Street
Suite 1802
New York, NY 10004-2627

Phone: 646-273-0275
New York Law Office Map

Red Bank Office
331 Newman Springs Rd.
Bldg. 1, Suite 136
Red Bank, NJ 07701

Phone: 732-978-1210
Red Bank Law Office Map

Had a great experience?

Review Our Firm