When partners begin a business venture, it’s typically with the best of intentions. However, these individuals may start out with a shared vision of their enterprise’s future and later find that things have changed. Not every partnership is meant to last, and it’s important to know what steps to take to end the relationship. Here is more on ending a Florida business partnership:
Your Partnership Agreement
When beginning a business venture, partners will typically enter into an agreement establishing their respective rights, roles, and responsibilities. Another important provision that should be included is what will happen if the partnership needs to end. If you or a partner have decided to part ways, the first step is to review the dissolution term of your partnership agreement.
Talking with Your Partner or Partners
Depending on the circumstances, your partner may or may not know that you want to end your business relationship. Although you may think the writing has been on the wall, it’s important to consider that your partner may not be expecting the news. Therefore, you may want to think about how you expect them to react. If you anticipate your partner being calm and professional, there may be room to end your joint endeavor peacefully. However, if you are unsure or expect your soon-to-be-former partner to become upset, you may need to plan ahead. This may include safeguarding your financial interest and protecting partnership assets.
Do You Want to Continue Operating the Business?
Another issue to consider is whether you want to continue operating the business. If so, you may want to think about whether it would be feasible to buy your partner’s interest in the business. Going in this direction will most likely involve getting your business valued and determining a fair price for their partnership interests. Additionally, you may also need to consider how to change your business structure.
Why do Partnerships End?
Business partnerships may need to end for a variety of reasons. In some instances, partners may find that their ideas for the business are going in different directions. In others, a partner may want to end the relationship because they feel that the other partner is not meaningfully contributing to the enterprise. There can also be circumstances when partners cannot agree on issues that are essential to running their business. For example, two friends may decide to go into business together only to find they have different work ethics or are otherwise incompatible in a business relationship. Not every business venture is meant to last, and it’s important to recognize when a partnership is in decline.
Leaving a partnership can be a complicated process, and it’s important to be prepared for the possibility that your former partner will not be agreeable to the dissolution. You also need to be fully apprised of the applicable law before assuming ownership of a former partner’s interest. If you plan on leaving or acquiring your partner’s business interest, you should discuss the matter with a Florida business attorney. Your lawyer can help you ensure that you have the information you need to transition from your partnership.
Contact a Florida Business Attorney Today
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.