Help Ending Your Business Partnership LLC
Wind Down, Buyout Partner, Sell the BusinessSometimes Ending the Partnership Is the Best Course
It can be very difficult to get out of a partnership when the relationship sours. You reach a point that it is no longer practical to keep working together. As a mediator, I used to think it was my job to try to fix every business partnership. I learned from experience that some partnerships need to end. If your partnership is at that point, you should work with me.
“You’ll get it done quicker and cheaper with less stress if we all work together rather than fighting it out with your partner or with lawyers.” — Chris Reich, Business Partnership Mediator
Cut the Drama. If It Is Time to End Your Business Partnership, Consider All Your Options.
Mediate It!
When you feel like your situation is hopeless and you need to do something about your partnership, talk with me. I have helped hundreds of people peacefully end their business partnerships. Get advice before you take any action to end the partnership. Don’t break the laws governing partnerships by locking your partner out of accounts. And don’t stop participating in the business because you could be seen as abandoning your interest and responsibility.
If it’s time to end your partnership, keep two important things in mind:
1. Nothing Changes Until It’s Official (DO NOT LOCK A PARTNER OUT UNTIL YOU HAVE A SIGNED AGREEMENT!)
2. It Is Important to Do It Right (There is more to this than a simple agreement. i.e., Liabilities, Future Claims, Taxes, Etc.
The first step in getting out of the business is to review your Operating and Partnership Agreements. If those were never drafted, you still want to gather all the information on everything you signed with an obligation. That includes leases, lines of credit, credit cards, and any other debt that the partnership took on. It’s not about getting your partner to agree to assume your portion of the debt; the creditors must agree to release you. This can be the hardest part of getting out of a relatively young business. If the business has a decent track record of paying bills, the creditors are more likely to agree to your release.
We Have No Money for a Buyout? No Problem. There Are Alternatives.
There is usually a cash shortage to fund a buyout when the partners are feuding. Don’t worry about that. If a Partnership Buyout is the best option, we can work out a payment method.
There are alternatives to buying each other out.
A buyout isn’t the only answer. If the business is struggling, the best option might be to close the business before it gets deep in debt. The partners can take their lessons and start a new business alone. There is a specific process to wind down an LLC and I’m happy to make that easy for you.
It might be possible to sell the entire business. Keep an open mind.
What I Do as Your Partnership Mediator
Having a neutral third party involved helps keep things calm. I can help you figure out what the business is worth without spending thousands of dollars on an appraisal. You will get guidance on the things you might not have considered.
How Does Partnership Mediation Work?
We start with a free, confidential consultation. You and your partner(s) need to be comfortable with me. I’ll answer all your questions openly. You will not be pushed for time. I work by remote meetings. Every step will be explained. If you’re ready to get started, I will give you a non-disclosure agreement and we can book our first meeting within a couple of days.
Don’t Wait to Contact Me. The Sooner We Get Started, The Less Damage to “Undo”
You are probably quite frustrated. Your partner likely is too. The longer you wait, the harder it is to get the temperature down.
If you are in a partnership that needs to end, call me for a free, no pressure, no obligation, consultation. Even if we don’t end up working together, you will feel a lot better after we talk. GUARANTEED
Chris (530) 467-5690
Email: [email protected]
Succession Planning in Family Business
Let’s look at how to plan for the next generation of your family to run your business. It’s never too early to make a succession plan and the earlier you start, the more options you have.
How to Escape Your Business Partnership
How do I get out of my partnership? And, it’s the biggest reason I am always ranting about having a Partnership Agreement. Without a Partnership Agreement, your options are very limited. You accept anything your partner is willing to give you, or you can dissolve the business.
Don’t Risk the Money You Put Into Your Partnership
Somebody puts up money with someone who agrees to contribute labor as their contribution to an equal Partnership. Once things are set up, and a lot of money is spent, the other Partner fails to perform, and the troubles begin. I get 2-3 calls like this every week.
Your Business Partner Keeps Taking Money from the Bank Account
Partners take advantage of partners every day and they get away with it. It is the most painful call I get. It sounds like this, “I put all the money I had into starting our business. My partner had bad credit and no money, but he promised to do all the work to get the business going.
Terrible Tension In Family Business Partnership
In family businesses, when things break down, they really break down. The stress level is much higher than when a typical partnership has issues.
How to Get Out of a Partnership LLC
While it seems like it should be very easy to get out of an LLC, it can be complicated. Even if the business is very small, there are considerations beyond getting your money back. In this post, I’ll try to hit the important points of getting out of an LLC Partnership. These same items apply if you want to remove a member from your LLC too.
All work is fully confidential from the first moment of contact. Every new client relationship begins with consultations with all parties. It's important to me that we all feel good about working together before we start. This site does not provide specific legal advice.
Contact Chris
1+ (530) 467-5690
9:00 a.m. - 5:00 p.m.
Pacific Time Zone
Yes, I work nights and weekends by arrangement. Call any time. I will always get right back to you.
Clients who have worked with lawyers, counselors, consultants, and coaches often tell me that my business mediation service is the best and least expensive way to fix a partnership.
— Chris Reich, Business Mediator