How to Peacefully Break up With Your Business Partner in California
Much like when individuals enter into a marriage, when two individuals enter into a business partnership, they do so with starry-eyes and visions of success. What they do not foresee is all the hard work that goes into maintaining a working relationship, all of the disagreements that come with two strong-willed people making such large decisions, and all of the compromises that will need to be made in order to satisfy both partners’ career and life goals. Because of this, partnerships do dissolve, and much like when a marriage dissolves, the two parties are left with even bigger decisions to make, such as whether to keep the company and buy one person out, sell the company and split the profits, divide the company, or even change the weighting of the partnership.
If you and your partner decide to dissolve your business partnership, you have several options. However, you want to make sure that whatever actions you take, they are done legally, so that there are no disputes later on down the road. Our Pleasanton commercial litigation attorneys have extensive experience in resolving partnership disputes, and in helping business owners peacefully dissolve existing partnership agreements. With our expertise on your side, you and your partner can make the best decision for your company, your customers, and yourselves.
Options for the Dissolution of a Partnership in California
Before dissolving your partnership for good, weigh your options, as you have several that do not have to result in the end of your company entirely. Some options to bear in mind are:
Change The Weighting Of the Agreement
If the reason you are dissolving your partnership is because one partner puts in more time than the other or because one partner wants less responsibility than the other, you can always change the weighting of the agreement so that one partner has 90% share, while the other has 10%, or something to that effect. This allows both parties to remain involved, but to a lesser extent for one.
Buy Out Your Partner or Sell Your Shares
If one of you want out of the partnership agreement entirely, but you do not want to sell the company, simply buy out your partner’s share, or sell your share to your partner.
Legally Dissolve the Partnership
If neither you nor your partner wants to leave the company, and if you cannot resolve your differences, you may have to dissolve your partnership entirely, which means dissolving your company. Much like a divorce, the dissolution of a partnership will require the splitting of profits and property, as well as thoroughly evaluating everything from existing tax debts to liability concerns. A San Francisco Bay Area commercial litigation lawyer can help you and your partner legally dissolve your partnership as peacefully and as fairly as possible.
Retaining Legal Help
The dissolution of a partnership is trying on everyone, including the employees of a company and their customers. Because of the massive responsibility that the business owners have to so many individuals, proceeding with a partnership dissolution must be handled with extreme care and tact. At Garcia & Gurney, ALC, our business litigation attorneys have experience in handling such delicate issues as the break-up of a partnership, and can successfully help the partners achieve an outcome that is favorable to everyone involved. If you and your business partner are talking dissolution, contact our San Francisco business litigation attorneys today at 925-468-0400 or online to schedule a consultation with one of our experienced lawyers today.