When a new venture is commenced, it provides numerous opportunities for entrepreneurs and their partners. They tend to make consistent efforts to thrive in the marketplace. However, things do not always go as planned. Initially, you might have associated or invested in an Edmonton-based venture hoping to get great returns. And now, you are looking for options to dissolve the partnership agreement.
The reason to get out of the agreement could be anything from non-profitable partnership to disputes between fellow partners. Nevertheless, to dissolve the contract, you’ll have to follow the steps given below.
- Review Your Partnership Agreement
When getting into a partnership, the method and specifications for ending the contract are also discussed. So, you should review the partnership agreement to learn the protocol of dissolving the contract. Irrespective of where the venture is established, the majority of the partners follow the information stated in the agreement. It helps avoid possible legalities and ensures no other partner is distressed.
It would also be wise to discuss your decision with your partners. It will help prepare them for future scenarios related to contract and company situations.
- Hire A Competent Lawyer
After learning about the process of contract dismissal, you need to get in touch with a well-qualified lawyer with expertise in business law. Presuming your partnership was in an Edmonton-based venture (as stated above), you need to find an Edmonton business lawyer with the necessary courtroom experience. It will come in handy if the contract is complex and involves filing a lawsuit. Even if that’s not the case, a lawyer can help streamline the dissolution process.
- File The Dissolution Form
The next step is to fill out the dissolution form with the help of your business lawyer. This form is a formal announcement that you are getting out of the contract and are ready to make all the necessary settlements. This form is filed with the city or state your business is based on, in this scenario Edmonton. It will announce that you are no longer liable for the debt of the firm or avail of any profits.
- Notify Fellow Partners
You must notify every other party involved in the partnership about dissolution. It includes customers, employees, landlords, government agencies, and more. Prior notification will help protect you from unnecessary hassle, particularly related to taxes and finances. It will make dissolution proceedings effortless.
- Settle All The Accounts
Last but most importantly, you must settle all your debts and accounts. Make necessary payments, especially your taxes, with the state and federal government. Close your business account associated with the venture and distribute the assets as stated in the partnership agreement. This procedure can get quite complicated without the help of an accountant or attorney. So, make sure to consult them beforehand.
To Sum It All Up
These are the few ways you can get out of the partnership agreement without indulging in major hiccups, particularly related to lawsuits. Make sure to get in touch with a reliable lawyer to streamline the dissolution process. If you have any doubts, make sure to clear them before filing the dissolution form.
