Legal Question in Business Law in California

Re: Dissolution of Partnership

Ending a partnership is a two-step process: dissolving the partnership itself, and winding up its business affairs, usually but not always in that sequence.

I note that this is a Michigan-plus-California question. I practice law in California and am answering based on its law. The law of general partnerships is fairly uniform from state to state, but where it often differs is in the forms used. The California Secretary of State has a form for filing a notice of dissolution, I think it is a Form GP-4. Filing the form is the tip of the iceberg -- useful to give public notice of the dissolution, but other aspects including winding up vis-a-vis creditors (including the IRS) and vis-a-vis the other partners is all very important and should be done thoughtfully rather than just abandoning the affairs. A self-help law book might be OK for a very simple partnership but if a lot of relationships and/or a lot of bucks are involved, it would be wise to consult an attorney practicing in the state whose laws govern the partnership.