Five Tips to Help You Painlessly Dissolve a Partnership in Florida
Even the best of business partnerships may eventually need to come to an end. Dissolving a partnership is a complex process — there are many different potential pitfalls that must be avoided. The good news is that there are steps that you can take to protect your legal rights and financial interests as you shut down the operations of a business partnership. In this article, our skilled West Palm Beach shareholder & partnership dispute attorneys provide some key tips for effectively and efficiently dissolving a partnership in Florida.
- Review the Terms of the Partnership Agreement
As a starting point, you should always conduct a comprehensive review of the partnership agreement. Ultimately, it is the partnership agreement that controls much of a business relationship between partners. In many cases, a partnership agreement will include specific procedures and protocols for dissolving the business. Assuming that it does, those procedures should be followed. If you have an issue with your agreement, a lawyer can help.
- Stay Organized, Get Documents and Records Together
Disorganization undermines many businesses. While organization is always an important general principle, it is especially critical when you are winding down business operations and dissolving a partnership. It is imperative that you and your business partners have addressed every relevant issue. You do not want to end up facing litigation because of an avoidable mistake.
- Tie Up Any Loose Ends in the Business
Under Florida law, businesses have certain legal obligations that they must abide by when winding down operations. It is crucial that you dissolve your partnership in the proper way — making sure that all creditors, suppliers, and customers are well-managed. This is especially important if you are attempting to keep any type of ongoing commercial relationship with these parties outside of the scope of the partnership that is being dissolved.
- Prepare a Partnership Dissolution Agreement
In general, the best way to end a partnership is through a collaboratively agreed upon partnership dissolution agreement. Within this agreement, the company can be effectively dissolved and the remaining assets and liabilities can be divided in a fair and reasonable manner. An experienced West Palm Beach, FL partnership attorney can help you negotiate and draft a partnership dissolution agreement that protects your rights and interests.
- Be Ready to Seek Legal Help
Unfortunately, in some cases, disputes arise during a business dissolution. When these disputes are allowed to persist, they can cause serious damage to the business and to your personal financial interests. If you are involved in a dispute over a partnership that is currently dissolving, you should be ready to seek guidance from an experienced attorney.
Speak to Our West Palm Beach, FL Partnership Dispute Lawyer Right Away
At Pike & Lustig, LLP, our Florida business law attorneys have strong, successful experience handling partnership disputes, including helping clients dissolve partnerships. If you need advice regarding partnership dissolution, we are available to help. For a confidential initial consultation, please reach out to us today. We represent individuals and businesses from our law office in West Palm Beach, Wellington and Miami.