When a business partnership is no longer viable for one reason or another, you might want to terminate it.
If that is the case, it can be instrumental in drafting a Partnership Dissolution Agreement to detail everything ahead of you.
One of the reasons you may need a Partnership Dissolution Agreement is if a Partnership Agreement was never made. Conversely, if you have a Partnership Agreement that all partners have agreed to, the eventual dissolution can perhaps be a lot simpler. That is assuming the original agreement contains provisions regarding the partnership's termination if it is to come to that. Most Partnership Agreements do.
If not, it would be best if you use a Partnership Dissolution Agreement to cover all bases and terminate the partnership as amenable to all partners.
Depending on your state, a Partnership Dissolution Agreement may also be known as:
Termination of Partnership
Cancellation of Partnership Agreement
Business Partnership Termination
Dissolving of General Partnership
Dissolution and Termination of Partnership
The partners in a partnership will need a Partnership Dissolution Agreement if they want to get out of the partnership. This would allow your partnership to come to a natural ending and, hopefully, discourage any disputes now or later. Some common reasons for dissolving a partnership include the death of a partner or illegal activity detection.
Create your own documents by answering our easy-to-understand questionnaires to get exactly what you need out of your Partnership Dissolution Agreement.
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All you have to do is fill out a simple questionnaire, print, and sign. No printer? No worries. You and other parties can even sign online.
Partnership Dissolution Agreements may be different, but the details are essential. It is at this point that a proven template can be handy.
Let 360 Legal Forms help with our extensive library of attorney-vetted legal forms. The process is fast and easy. All you have to do is fill out our easy-to-understand questionnaire. Once complete, simply download your form as a PDF or Word document from your secure online account.
To create your document, please provide:
Partnership details: The name, address, and other identifying information of the partnership.
Partner details: The name and further details of all the partners.
Date of dissolution: Specify the date on which the partnership is to be dissolved.
Agreement details: If a partnership agreement exists, specify the latest revision date.
Asset Distribution: Instructions on how the partnership's assets are to be distributed after the dissolution.
Liquidating partner: Identify the partner who is responsible for liquidating the partnership, which would include the inventory, assets, liabilities, and general paperwork.
Notice: If you are to publish a public announcement of the dissolution.
Signatures: Every partner should sign the document.
Partnership: A business structure in the United States involving multiple owners and is one step above the sole proprietorship.
Dissolution: Dissolving or ending a partnership officially.
Interest: This refers to the ownership interest of each of the partners.
Severability: The quality of a document, such as an agreement or lawmakers' bill, being valid even when some parts or provisions are struck out (valid without the offending parts or conditions).
LLP: The Limited Liability Partnership business structure shields the partners from being personally liable.
General Partnership: The standard type of partnership business structure as defined above, without the limited liability.
Every partner in the partnership has to sign the document before it can become legally enforceable. Notarization is not required, but there is nothing to stop you from getting a notary public to witness and notarize the signatures, which may make it harder for someone to challenge later on.
All the partners should take possession of one copy of the Partnership Dissolution Agreement. Also, publishing the notice of dissolution in a local newspaper is standard practice in some states.
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