Hi !
How do I remove a person from a general partnership ? we are 50/50 on it. My business partner agreed to sign or do whatever will be necessary. we are still friends and there is no conflict at all. He just want to leave and me keep the business the way it is !
Thank you !
Answer
You need to have a short agreement pursuamt to which the business interest in the partnership is transferred. If a GP-1was filed with the secretary of state, you need to file dissolution documents. You will need to advise third parties he is no longer a partner. He may want to publish notice he is no longer responsible for entity debts. The transfer in a 50-50 partnership dissolves the partnership. Check with your accountant to see if there are any tax implications on termination. You will then be a sole proprietorship, and presumably will no longer operate under the partnerships tax ID number. Will this impact your partnership name or the filing of any fictitous Business Statements? You will need to change bank accounts to reflect this change, and may need new business licenses. You may need a new retail sale permit. Check to see if any business contracts have a prohibition on assignment that would be terminated.
Good luck with the transition.
No comments:
Post a Comment