Business Partnership Advisor

Together, we can fix your business and partnership problems

Chris Reich, Business Luminary

How to End a Business Partnership by Agreement

You and your partner agree that it's time to quit. Here are the steps to dissolve your Partnership and LLC.

Is It Time to Quit?

Dissolving your partnership and or folding your LLC is a big move. Be certain that you and your partner are clear about this decision. If you can no longer work together or if the business can no longer sustain itself, then yes, it's time to close shop. If there is a chance that you may keep the business operating, get advice from a good business consultant (call me!) before finalizing your plans. A couple of hours consulting time won't cost much and could save your business.

All Partners Agree?

If your partner (or a partner) wants to continue the business, pay attention. I would ask, "why?" If the business is failing, why would a partner want to go on? It may be that she sees hope where there is none. That's okay but you need to protect yourself should the business fail later.

Don't ever just agree to walk away from a partnership. You are still responsible for debts, taxes, and other obligations until you have formally withdrawn from the partnership and been cleared by all creditors.

Time to Close the Partnership- Chris Reich

If it is time to dissolve your partnership, follow the steps or you could get a nasty surprise later.

Chris Reich, Business Partnership Adviser

Sign a Declaration of Dissolution of Partnership

You need to draft or obtain a document which clearly states that the partners intend to dissolve the partnership. If you have an LLC, there are forms for this. Consult your State's Secretary of State site.

Deal with Obligations (Creditors)

Just because you have decided to quit does not mean the debts go away. You must satisfy open debts unless you are filing bankruptcy. Pay off credit cards, vendors, suppliers, and employees. Set aside some money for taxes. Then, review your lease. Depending on the lease and the landlord, you may have to pay off the balance on your lease. Some landlords will work with you on this so approach this gently. In one case I was able to find a new tenant for my client and his landlord was thrilled to have everything worked out.

File with the State (LLCs)

As mentioned earlier, you might need to file a notice dissolving your Partnership with the state. All LLCs must file, but few states require that a general partnership file anything.

You may have to put a closure notice in your local paper. If the debts are satisfied and there are no complications, you probably won't have to run anything in the paper.

That's it. You can have your tax preparer file all the final taxes and you're done.

Chris Reich, TeachU

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"If you must close your business and dissolve your partnership or partnership LLC, take good care of yourself. You may experience a deep depression or profound sense of loss. You are not a failure. Business is tough. I respect anyone with the courage to try."

Do you like FREE services? Contact me now for a 100% confidential and 100% FREE consultation.

Prefer a direct approach?

Email: Chris@TeachU.com

Phone: (530) 467-5690

How a Mediator Can Help Your Family Business

As Moderator to many family businesses, I have helped with succession planning, compensation planning, and resolving of key questions around the operation of the enterprise. It can be difficult for an adult offspring to talk with Dad about a raise.

What Makes a Contract Legal and Binding?

As you see, a contract can be legal yet not binding. And, the most important take away is that a promise, even if written up and signed, is not binding. If an agreement is not binding, it isn’t enforceable. I assume you want your agreements between you and your partner(s) to be legal, binding, and enforceable. Let’s look at the pieces that must be included to make a valid, binding contract.

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Before I give you the secret to easier and successful negotiation, let me explain a few things that don’t work. In fact, these will work against you. From years of watching people negotiate buying or selling, trying to change processes, or reaching general agreement, I have seen what works and what doesn’t when partners are negotiating with each other.

Chris Reich, Business Partnership Mediator can help you fix the communication issues with your partner.

Problems in the Partnership? Fix the Communication

I’ve found a common problem with communication when I’m conducting mediation meetings. People always think they know what the other party is thinking. They’ll say things like, “I know Bill won’t like this, but I think…” Opening your thoughts with that sort of lead in is going to put ‘Bill’ on edge before you even make your point. Never start by negatively setting the stage. So then, how should you start a conversation about a hard subject? In this post I’ll give you the 7 steps to conduct less tense and more fruitful meetings with your business partner.