How to dissolve a business partnership:
Things that should be part of a business partnership-
- You have to be able to trust each other: In order to have a successful partnership you have to be able to trust each other. If you cannot trust each other your business will not run successfully. You have to know that your partner is going to go through with their part and they have to know that you are going to go through with your part. Otherwise your business will not ever do well, it will just stay stuck in one spot and you will eventually have to close.
- You have to respect each other: Another important part of a business partnership is respect. If you do not respect your partner and they do not respect you then this will also cause problems. You have to respect their time, life situation, abilities etc. If you do not respect each other's it would lead to a lot of arguments and such. You have to be able to work together around each other's other responsibilities.
- You have to have common goals: If you and your partner do not have common goals you will also have major problems in your company. If one of you has the goal to earn a lot of money and one of you has the goal to provide great quality products for customers, that could cause problems. While one of you may not mind producing lower quality products in order to make a lot of money, the other would want to produce great quality regardless of big incomes.
Things to consider before dissolving a business-
- One thing to consider is how long you have been in business. You have been a business for a long time then you have clients who are dependent on you. You have clients who trust that you will follow through with your business. Also, if you are planning to go into business alone after the partnership dissolves, you have to know whether or not these clients will stick with you are if they will go with your partner. If you dissolve and they trust your partner more than you then that would not be good for you. Your business would not work out.
- If you have a 50/50 relationship you will want to consider dissolving. If it is 50/50 you have to consult your partner on everything and if they do not agree with dissolving you would have to put up a big fight to get dissolved and to get the assets that you want out of the company.
The dissolving process-
Once you decide to dissolve there is a process to go through. If the decision is mutual it will not be hard. You and your partner can negotiate and decide who is going to take what. But if one partner wants to dissolve and the other does not, it will be a very hard process.
If one of you wants to dissolve and the other does not then you have to go to court and the court will decide which of you takes what. If you have a 50/50 partnership the court will probably divide the assets 50/50. This could be bad because you cannot have any say in which assets you do and do not get.
Dissolving a business partnership can be a difficult process if you and your partner do not mutually agree on the fact that you should dissolve. If your problems are not something you can work out through better communication and such then you have a long hard road ahead of you in order to get dissolved.