How do you end a business partnership?

On Behalf of | Mar 29, 2021 | Business Law

Ending your business partnership in Georgia doesn’t have to be an ordeal. If your business partnership has run its course, you and your partner might simply agree to part ways. Here are a few ways you could end your business partnership without compromising your personal relationship.

What’s the best way to end your partnership?

When you started your business, you might have signed a business agreement that included plans for the eventual dissolution of your partnership. If this is the case, you can review the document to figure out how to proceed. This is the easiest way to end your partnership under business law.

If you didn’t write a business agreement, you’ll have to figure out another strategy. You could buy out your partner’s shares in the business or vice-versa if you’re the one that wants to leave. You might agree to sell the business to another individual altogether. This allows both parties to walk away with a profit.

Navigating the process

Whatever option you choose, you’ll need to hire an attorney to help you write a dissolution plan. This plan officially ends your partnership and sets up a timeline for the process. You might need to figure out who will pay business expenses and file your taxes one more time before you leave. You’ll also have to talk to your employees about the situation. If you’re closing the business altogether, they’ll need to know well ahead of time.

Depending on the type of business you own, you might have to notify other parties about the change. This might include customers, suppliers, vendors and anyone else you work with. Even if you’re not shutting down the business, it’s important to keep everyone on the same page.

How do you get started?

If you’re thinking about ending your business partnership, talk to an attorney first. Making a misstep in the beginning could throw off the entire process. Your attorney may offer advice on talking to your partner and letting them know about your plans for the future. If you suspect that your partner wants to exit the business, your attorney may help you figure out a strategy.