Legal Question in Business Law in Texas

Re: Closing A Business

Partners in a business are jointly and severally liable. The IRS and other creditors can go after all the partners and get the one with the deepest pockets.

Dissolving a partnership requires that the debts be paid first when the assets are liquidated, then the partners share the debt if the assets won't cover. If there's a surplus, that's divided between the partners.

Grabbing assets before the creditors are paid may be considered a transfer to defraud creditors, and nail the partner for the value of the transferred assets, court costs, interest, and attorney fees.