Five Steps To Take To Avoid Disputes When Dissolving A Partnership In Florida
Winding down a partnership business is complicated enough—the last thing you need to deal with a dispute. By taking the right steps, you can dramatically reduce the risk of a legal dispute over a partnership dissolution. Here, our West Palm Beach partnership dispute lawyer highlights five steps to take when winding down a general partnership (GP), limited partnership (LP), or limited liability partnership (LLP) in Florida.
- Start By Reviewing Your Partnership Agreement
When winding down a GP, LP, or LLP in Florida, the first place to look is always the partnership agreement. A partnership agreement is the basis of your rights and responsibilities. Make sure you carefully read and review the terms of the agreement to determine what steps you need to take when dissolving the business. There may be specialized requirements in place.
- File the Proper Partnership Dissolution Forms With the State of Florida
Ending a partnership in the proper way requires filing the appropriate legal paperwork with state regulatory agencies. While general partnerships are technically not required to file anything, it is still a best practice to do so. Limited partnerships and limited liability partnerships are legally required to submit business dissolution paperwork. Here is the proper form to end a partnership in Florida: Form CR2E070, Statement of Dissolution for Partnership.
- Notify Creditors, Supplier, and Other Interested Parties
When you dissolve a partnership in Florida, you have a general responsibility to notify interested parties. Tell your creditors, your suppliers, and anyone else with whom you have an ongoing commercial relationship. By giving these parties as much notice as possible, you can reduce the risk of running into problems.
- Pay Debts and Resolve Any Final Tax Issues
Next, you will need to make sure that your business partnership pays its bills. In general, this means paying outstanding debts and resolving any final tax issues. If you fail to pay certain debts, it is possible that you will face a legal claim from a creditor, debt collector, or tax authority. Depending on the specific circumstances, you could even face personal liability for an unpaid partnership debt. Make sure that these debts are addressed before the business is officially dissolved.
- Make Distributions to the Business Partners
Finally, the dissolution of a partnership in Florida means that distributions will need to be made to the business partners. In other words, each business partner will get to receive their share of the remaining property/assets in accordance with their ownership interest in the company. All distributions should be consistent with the terms of the partnership agreement and the requirements of Florida law.
Schedule a Confidential Consultation With a Partnership Lawyer in West Palm Beach
At Pike & Lustig, LLP, our West Palm Beach business law attorneys have deep experience representing clients in partnership disputes. If you have any questions about partnership dissolution, we can help. Give us a call now or reach out to us using our online contact form for a confidential consultation. We provide partnership law representation throughout South Florida.