Business partnerships, like all things, eventually come to an end. Some of these agreements simply reach a natural end with the conclusion of a particular deal or project. Others terminate upon the death of one of the partners or because of a dispute between the partners. Still others may end because the partners decide that it would be more advantageous for them to reform as a corporation or a limited liability company. If any of these circumstances apply to your situation, then it may be necessary to contact an attorney who has knowledge of dissolving a business partnership in California.
California law imposes conditions on dissolving business partnerships. Most of these conditions relate to making the dissolution publicly known so that concerned parties are informed about the change in circumstances. For instance, the California Revised Uniform Partnership Act specifies that legal notice of the dissolution must be advertised for at least 12 business days. Suppliers, creditors, and other concerned parties are also entitled to direct notice according to the law. It’s also essential for dissolution paperwork to be filed with the state and the Internal Revenue Service.
When partners become embroiled in a dispute, they’ll need an experienced attorney to closely interpret the terms of the original partnership agreement. This agreement should contain guidelines for terminating the partnership, and it’s only fair to ensure that all parties abide by these rules. On the other hand, if the agreement was not well drafted or does not contain sufficient explanations of how to dissolve the partnership, then it’s necessary to rely on the knowledge and experience of a California business attorney to help fill in the blanks based on California law and the intent of the partners. Frequently, lawyers can negotiate a dissolution that is equitable for all parties in accordance with the duties and responsibilities that are outlined in the original partnership agreement.