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:
- Partnership Act 1963 (ACT)
- Partnership Act 1892 (NSW)
- Partnership Act 1997 (NT)
- Partnership Act 1891 (QLD)
- Partnership Act 1891 (SA)
- Partnership Act 1891 (TAS)
- Partnership Act 1958 (VIC)
- Partnership Act 1895 (WA) .
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:
- Fair Trading (NSW)
- Business Development (ACT)
- Department of Business (NT)
- Business and industry portal (QLD)
- Business, industry and trade (SA)
- Business Tasmania (TAS)
- Business Victoria (VIC)
- Small Business Development Corporation (WA)
What to do...
- Read our Closing your business page for more detailed information on how to close your business.
- Check out our information on dissolving a company structure.
- Head to our Bankruptcy page to learn more about what to do if your partnership needs to close due to insolvency.
- Tell the Australian Taxation Office if you are changing, selling or closing your business.