Whenever you and your best friend talk about your employment situation, the discussion seems to always end up with the same question. Why are we working for other people? Why don’t we start our own business? Many people in California have the same idea.
So you decide to take the plunge and start working together and you open an auto repair business. On the advice of your accountant, you took the time to file a Statement of Partnership Authority with the Secretary of State to get the business going in the right direction.
For a startup business, you did pretty well and jointly resolved most management decisions amicably. But now after a year, business is down and your relationship with your partner is becoming contentious.
Now you’re wondering if this business will even succeed. You can’t seem to agree on anything with your partner, you have outstanding bills and the bottom-line profits are shrinking. Should you go it on your own? If so, how do you get out of this partnership in reasonable financial condition?
You should seek out a California lawyer experienced in legal proceedings involving partnerships. The attorney can meet with you to review all the aspects of your partnership and offer a sound plan to dissolve the relationship if you decide that is best. A comprehensive plan will address all of your concerns such as:
Settling outstanding debts
Paying back income taxes
Splitting physical assets
Suing for breach of partnership
Sharing any remaining profits
The lawyer can help ensure that the partnership is dissolved as fairly as possible so that you have a clear path to move forward. Don’t wait to make that call. Getting the right legal counsel as early as possible can help avoid potential mistakes.
By Kevin Quinn
Posted in Business Law