My business partner and I started a business over five years ago. We both have agreed that we have come to the end of the road of our partnership. What advice do you have regarding ending a business?
First things first: I am not a lawyer. You will want to seek legal assistance in resolving any legal disputes and entity dissolution. The following tips that I will share are for informational purposes only.
Now that the legal language is out of the way, consider these tips to dissolve your entity:
Attempt reconciliation. Sometimes business owners need a third party to intervene so that the parties can hear each other. I’ve worked with entrepreneurs who engaged the help of a meditator to resolve complicated issues between business partners. To locate a mediator near you, check out mediate.com/businessmediators or your local area bar association at http://bit.ly/barassoc. If you and your business partner do not feel that’s a possibility, then other measures are needed. Keep reading.
Check with government agencies. Depending on the type of legal entity you have, you will need to find out from your Secretary of State office or some other government agency about how to dissolve your company. The state agency may also have other requirements for you as well. You will also need to reach out to the IRS to see what requirements they have for dissolving a business. In fact, the IRS has a useful checklist at http://bit.ly/irsclose.
Find an attorney. If reconciliation does not work and there is no other recourse, searching for a business attorney is up next. Read more..
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