Business Break-Ups
Our attorneys can assist with the dissolution of your business
Breaking up a business can be a complex legal process. If not done right, one or all of the parties involved can suffer serious financial consequences. That’s why it’s critical that you talk with an experienced attorney who thoroughly understand business litigation law and who can advise you on the best approach for successfully dissolving your business.
Our experienced attorneys at Eller Tonnsen Bach, LLC have the knowledge and the expertise you need when dealing with such complex legal cases. We have worked with businesses of all sizes. We thoroughly understand the rules and regulations governing such legal matters. We know how complicated such cases can often be for everyone involved. That’s why we never take a one-size-fits-all approach. Instead, we can recommend different legal strategies tailored for your unique circumstances.
Why do business break-ups happen?
Business break-ups (sometimes referred to as a business separation) often involve businesses run by business partnerships. The dissolution of a business partnership happens for many different reasons. These include:
- Business partner wants to retire from business.
- Financial difficulties with business.
- Irreconcilable differences between business partners.
- Unequal commitment among business partners (one partner feels they do significantly more work than the others).
These are just some of the reasons why businesses break up. Each business often has its own unique reasons. That’s why it’s important for the attorney advising you to understand your motivations and your goals when assisting with your business separation agreement.
What is a business partnership?
In order to better understand what needs to be done to break up a business, it’s important to be aware of the different types of business partnerships. That’s because each type of partnership can have an impact on how your business is dissolved. Common types of business partnerships include:
- General partnership – A business arrangement in which two or more people defined as general partners agree to do business together.
- Limited partnership – This particular type of business partnership involves two types of partners – general partners and limited partners. General partners are responsible for the debts of the business. Limited partners are not responsible for such debts.
- Limited liability partnership (LLP) – This type of business arrangement does not hold partners responsible for negligence, misconduct or liable for financial obligations.
Depending on what type of partnership was formed when creating your business, different rules and regulations may apply when deciding to break up or dissolve your business. An experienced attorney can explain the options available to you and how best to proceed.
What options are available?
There are many options often available to business partners who want to dissolve their business. Such options include:
- Buy, sell agreements, in which one or more partners agree to buy out the partner or partners who wish to sell their share of the business.
- Closing or winding down a business, something that often occurs when all business partners mutually agree to close the business.
- Litigation, in which one more parties takes legal action against other business partners, including filing a lawsuit in certain circumstances.
Whatever approach you decide to pursue, it’s critical to take into consideration the advantages and disadvantages of each option. That’s why it’s important to talk to a lawyer who fully understands the legal and financial implications of different business dissolution options.
How we can help you
Our attorneys take such legal matters very seriously. This is especially true if litigation is involved since lawsuits and other legal action can have adverse financial effects on all business partners, regardless of whether they are the ones seeking to dissolve or retain the business.
Our law firm focuses on resolving business break ups while minimizing the adverse financial impact. We understand you have worked hard to build your business to its current state. It’s our job to help you preserve the assets you have accumulated through your business partnership. As a result, we regularly work towards solutions that minimize unnecessary costs.
In particular, some of the services we can provide to you may include:
- Filing mandatory business dissolution documents.
- Closing out any applicable business accounts.
- Scheduling the payment of any outstanding taxes or debts.
- Finalizing any outstanding labor or employment law-related issues.
Discover what we can do for you. Contact our law firm and schedule an appointment with one of our attorneys at our three office locations in South Carolina and North Carolina. We’re here to help you achieve success.
