Over the years, your company has grown and had its ups and downs. When your business first started out, you entered into a partnership because you and your partner felt that path was right for the goals and ambitions of the business. However, you may have come to the point, as many partners do, where you feel that the business relationship no longer works.
After much discussion, you and your partner may choose to dissolve the partnership. Of course, this type of relationship is not one from which you can simply walk away. Indeed, you must take the proper legal steps to ensure that the dissolution takes place in a manner that protects the soon-to-be former partners and the company.
One stays, one goes
The actions taken to dissolve partnership may depend on who wants to end the business relationship. If you want to continue with the company while your partner does not, you may need to buy out the other individual’s shares in the company. On the other hand, if you want to leave the partnership, the other party may need to buy your shares. Having a buy-sell agreement in place can help ensure that everyone stays on the same page.
Dissolving the business
If dissolving the partnership comes about because you and your partner want to dissolve the business entirely, you will need to take additional steps, like creating a partnership dissolution agreement and a statement of dissolution. The agreement can include terms regarding what actions each partner should take to dissolve the business and when the partnership should end.
After you and your partner have completed the dissolution process, you will need to file a statement of dissolution with the state. In order to do this, you will need to understand what requirements Texas has for this type of statement.
Taking the right approach
Dissolving a business or partnership can have its complications just like forming a business. Therefore, you will certainly want to make sure that you understand the legal steps necessary for properly ending the business relationship and dissolving a company.
As with any major business-related move, taking steps to consult with an attorney will likely work in your best interests. Whether you want to remain with the company or dissolve it entirely, legal counsel can advise you on your best options for preserving your company’s legacy.