hands, shaking hands, company @ Pixabay

When you decide to dissolve a partnership, it is important that the dissolution takes place in accordance with state law. A partnership liquidation occurs when one or more partners (or the remaining partner) buy out all of the other partners’ interests in the company. This process often includes an agreement on how much each partner will pay for his share and what type of payment method they will use. The agreement may also specify how much the company’s assets should sell for at auction, as well as any final payments due to creditors before dissolving. The term “liquidation” can be misleading because there are many types of partnerships that do not involve either buying-out or selling off all assets; these include limited liability partnerships (LLPs) and limited liability companies (LLCs). The process of dissolving a partnership is different depending on the type of company. The following are general guidelines for how to dissolve partnerships that have more than one partner:

paper, business, finance @ Pixabay

-Limited Partnerships __ If there are multiple partners, then they will need to reach out to an attorney or other professional in order to get guidance about what steps should be taken next. These professionals generally agree that dissolution proceedings can take place by way of either agreement among the parties or through litigation between them. In most states, if dissolution proceeds via agreement, then it must involve all partners and cannot result in any party’s interest being reduced below their initial contribution level. Dissolution agreements typically include provisions as follows:


Please enter your comment!
Please enter your name here