How to Voluntarily Dissolve or Liquidate a Partnership in Florida
There may come a day when it is time to end a business partnership. As voluntarily dissolving/liquidating a business is complicated, it is imperative that you take proper care to protect your financial interests. It is not uncommon for serious disputes to arise when partners are trying to wind down operations. Here, our Miami partnership dispute lawyers provide four tips to help you voluntarily dissolve your business and avoid disputes.
- Review the Written Partnership Agreement
A partnership agreement forms much of the basis of your legal rights and legal responsibilities. If you and your partners are preparing to dissolve or liquidate the business, you should start by reviewing the partnership agreement. Ideally, the partnership agreement will have clear protocols for winding down the business. At the very least, the agreement will let you know what all parties need to do to move forward.
- Take a Formal Vote to Dissolve the Business Entity
Assuming there are procedures to dissolve the business within the written partnership agreement, you should follow those guidelines. In most cases, you will need to take a formal vote to dissolve the business. If all of the partners agree that it is time to end the business, this step is relatively straightforward. If there is some disagreement about how or if the partnership should be dissolved, it is recommended that you consult with a Florida business lawyer.
- File the Proper Legal Forms with the State of Florida
In Florida, you must complete and file official paperwork to dissolve a partnership. In general, you should fill out the Statement of Dissolution for Partnership form and file it with the Florida Division of Corporations. The form can be filed jointly by all business partners—indeed, this is often the most efficient option. If the form is not being filed jointly, then a copy of the Statement of Dissolution should be provided to the non-filing partner.
- Settle Outstanding Financial Obligations and Distribute Assets
Filing the Statement of Dissolution for Partnership is the easy part. To dissolve a partnership in Florida, you also need to settle all outstanding financial obligations/debts. Once that process is complete, the remaining assets can then be distributed to each party in accordance with their ownership stake in the business. You must settle outstanding debts before any distributions are made. If you fail to do so, you could end up facing personal legal action from a creditor. A Florida partnership lawyer can help you wind up the business properly.
Call Our South Florida Partnership Lawyers for Immediate Legal Help
At Pike & Lustig, LLP, our Florida partnership attorneys are skilled and effective advocates for business owners and entrepreneurs. We are here to solve problems and protect your rights. If you have any questions about voluntary partnership dissolutions or voluntary partnership liquidations, we are here to help. Call us today for a review of your case. With offices in West Palm Beach and Miami, we provide legal throughout Southeastern Florida.