Legal Question in Business Law in California

Changing from general partnership to sole prorietorship

I want to withdrawl from a general partnership. My business partner would like to own the business as a sole proprietor. Does he have to get a new EIN? Will we have to cancel the current one for the partnership? We put his name and SS when we applied for our EIN, so will I not be able to notify the IRS to cancel the EIN in the event that he does not want to do it? Thanks in advance.


Asked on 3/11/09, 12:36 am

1 Answer from Attorneys
Adam Telanoff Telanoff & Telanoff

Re: Changing from general partnership to sole prorietorship

Talk to a lawyer. I am available by email.

As a partner in a general partnership, you are personally liable for all of the debts of the partnership. You may also find yourself liable for debts that creditors reasonably believe were partnership debts even after you leave.

There are procedures to create a public record that you are no longer a member of the general partnership in order to protect yourself.

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Answered on 3/11/09, 11:19 am


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