There are many situations in which it makes sense for Las Vegas entrepreneurs to end a company—low profitability, business disputes or even simple boredom can be enough to make business owners go their separate ways. Here at the Aldrich Law Firm, we understand that while some partnerships can conclude cleanly, others require extensive negotiations and perhaps even litigation in order to reach a resolution.
According to the United States Small Business Association, certain steps must be taken when partners decide to dissolve their business associations. This often includes an assessment of the business’ value, including assets and liabilities. These are generally divided among partners based on their percentage ownership of the business.
To avoid any breach of contract issues, partners must also review partnerships’ legal agreements to determine how they will be affected by the dissolution. The parties must sort through their duties under these contracts, some of which may continue regardless of the existence of a partnership.
The process of reviewing and dividing a business’ assets and liabilities can sometimes lead to disagreements between partners, which must be addressed in order to complete the dissolution. The SBA explains that, absent a preexisting agreement that describes how the partnership should be terminated, mediation or business litigation may become necessary to resolve such disputes.
Untangling a partnership can be a tricky matter, with many legal requirements surrounding not just the partnership, but also the simple termination of a business. For more information on some of the issues involved in partnership disputes and dissolutions, please visit our page on partnership law litigation.