Entering into an Oregon business partnership is not unlike entering a marriage in that you likely enter with high hopes and confidence the partnership is going to work out. Yet, just like marriage, business partnerships sometimes run their course, and when yours does, it is important that you formally dissolve the partnership through the proper channels. Otherwise, you run the risk of facing conflicts and lawsuits that may cost your business unnecessary time and money.
Per Business.com, here are some ways to make dissolving your business partnership easier.
Include a dissolution clause in your partnership contract
A dissolution clause is something you include in your partnership agreement so that you may reference it later if you or someone else wants to leave the partnership. A dissolution clause might outline how to go about dissolving the partnership and may reference certain procedural steps you or the partner that wants to leave must take to do so.
Draft a dissolution agreement after-the-fact
In the absence of having an existing dissolution clause in your partnership agreement, you may need to create one after someone decides to leave the partnership. A dissolution agreement should outline the agreed-upon terms you have reached with regard to settling debts and distributing assets. It should also address any changes to permits, business licenses, bank accounts and similar matters.
File a statement of dissolution
Once you have a formal dissolution agreement signed, you need to file a statement of dissolution with the state.
Dissolving a business has financial and other implications. The more you understand the steps involved in dissolving a business partnership, the more seamless the process may prove to be.