Legal Question in Business Law in Maine

Partnership

I need to know how to dissolve a partnership? Are there special forms that you need to fill out to do this or do you have to hire a lawyer? The Partnership was made when a relative died and left a Christmas Wreath business to 4 family members. One family member isn't helping out this year at all, and said this summer that she no longers wants to be in the partnership. Do they still have to pay her a share this year, when she didn't help with the business at all? If there are forms can you fax them to me?

Also if someone starts a partnership with someone, and their is nothing written, bascially all they share is the company name, how do you dissolve this?

Thank you for your help.


Asked on 12/04/04, 5:20 pm

1 Answer from Attorneys
Jerome Gamache Ainsworth Thelin & Raftice, P.A.

Re: Partnership

You are correct that a Partnership can be pursuant to a verbal arrangement. It is also true that a partner can withdraw in a similar fashion. However, since the Partnership in your situation is a business, it is not generally adviseable for a Partnership to not have a written Partnership Agreement. Partners have personal liability for the Partnership, so it is important to reduce the terms of the Partnership to writing to avoid future problems. Is there an accountant involved here? Tax advice should play a role in Partnership decisions. I do not think it sounds like you are looking for a formal dissolution of the business so much as a Partnership agreement detailing the terms of the withdrawal of a partner and I am suggesting that you enter into a Partnership agreement for the remaining partners and the future operation.

This is something that you should seek the help of a lawyer for. The Partnership (and remaining partners) can obtain one counsel and ideally the withdrawing partner will have an attorney review the agreement to ensure that it can be enforced against that partner if need be in the future.

I cannot fax you forms in this matter, but am otherwise willing to help if you would like to contact me further. Tel. 767-4824. Thanks.

Read more
Answered on 12/06/04, 9:29 am


Related Questions & Answers

More Business Law questions and answers in Maine