Legal Question in Business Law in California

Re: Partnership Withdrwal

You need a detailed written buyout agreement that has appropriate releases and hold harmless provisions. Then you can convert the business into anything you need. Feel free to contact me for the legal help you'll need.

Re: Partnership Withdrwal

Without knowing all the details it is tough to say. Some things that are helpful to know are if you registered your partnership, the form and substance of the partnership agreement, a complete understanding of the assets and liabilities, and what you have done in the past as a business.

That said, and assuming there is no partnership agreement, this could simply be as easy as putting something in writing that says you are dissolving the partnership and you are taking complete control of all the assets and liabilities whether they have value or not. You would also want to review any agreements you have entered into and notify customers, clients, vendors, etc. that the partnership is terminated.

This could also be contingent on your original partnership agreement (if you have one). There might be a clause in there describing how it should be dissolved.

The risks here are that the dissolution agreement will not cover all of the issues there might be (for instance, you could dissolve the partnership, make a lot of money only to have your partner contest the validity of the agreement or your former partner could incur liability on behalf of the company leaving you holding the bag - if something was not contemplated it could mean an ownership interest for that person).

I recommend you discuss this in detail with an attorney. I know paying somebody money to look at something that seems so simple may not be appealing but you also don't want to be in a position where your former partner's actions put you in a position of incurring substantial liability, thus costing you more money.

Re: Partnership Withdrwal

An agreement in writing has to be made setting forth the terms of your understanding. Please contact us if you have any other questions.