Dissolving partnerships

Closing a business that is structured as a partnership may have different or additional requirements to closing a business that is only owned by you.

Dissolving a business partnership

There are a number of ways a business partnership can be dissolved. These include:

  • the partnership term as stated in the formal partnership agreement has expired
  • one partner gives written notice to the other partner to exit the partnership
  • one or both partners can no longer legally own a business
  • there is a court order
  • there is a death of one of the partners
  • the business has gone bankrupt or insolvent.

Legislation for dissolving a partnership

The terms and conditions of dissolving a partnership will depend on whether there is a formal partnership agreement in place. If there is no partnership agreement in place, then the terms and conditions will be guided by the state legislation for partnerships:

There may also be different legal requirements when dissolving a partnership for your individual state. Contact your state's government business authority for more information:

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