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Dissolving A Partnership???


kaytee_316

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My daughter and I have been in business for several years as partners but decided to close over a year ago due to some unrelated family issues. All we did was just make the business dorment, never canceled our licenses. At any rate, now we are both going back into business but are going our own seperate ways. She does bath and body and I do candles ... honestly, the paper work for partnerships at the end of the year is a real pain so we decided that it would be much much easier if we had seperate business. She has already started working on hers ... name, ID's etc., and has given me full control of the old one. My question is ... how do you dissolve a partnership ... there was never any legal papers drawn up but we are jointly listed on our tax IDs and Employer ID's and also on our fictitous name registration. Would it just be easier for me to completely close down the old business and start a new one???

Any advice would be appriciated!

Thanks!:D

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If you are jointly listed and the licenses are still active, you'll need to consult a lawyer for your state and double check. I believe once you file, for many states, the entity becomes property of all persons interested. Sometimes too, she can just file to be removed and that could be the end of it. It's important though that her name is removed or the license isn't used, because if something were to happen (god forbid), as a person on the license listed, she could still be seen as a partner and if you were to get sued, so could she and vice versa.

Other than that, just start up a new biz.

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Thanks for the advice!

I've been on the phone all morning trying to talk to a "real" person ( gotta love the automated systems, lol) and so far haven't gotten through to anybody :waiting: .

As far as the liability issue ... that is a really good point. I hadn't thought about it. I don't know that it's going to be worth my while to have my attorney handle this at this point (he's really expensive, lol), my hubby retired some months ago so all I'm going to do as far as selling goes is a few craft shows and small orders here and there. If I remember correctly, all I'll need for that is a tax ID and maybe insurance ... I'm thinking a new "biz" will be the way to go.

Thanks :smiley2:

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