When you think of a divorce, your thoughts may automatically turn to the break-up of a marriage. However, businesses that involve more than one owner, whether they exist as limited liability companies (LLCs) or traditional partnerships can go through break-ups and divorces, too. These “divorces” can lead to legal problems that are just as financially and emotionally messy as in a regular divorce. If you aren’t careful, you can end up embroiled in time-consuming and expensive legal disputes.
Fortunately, when you take the proper precautions in dissolving your partnership, you may be able to avoid these unwanted repercussions. You can rely on the experience and knowledge of the Florida business litigation attorneys at Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A. to guide you through the LLC or partnership dissolution process from beginning to end.
- Review Your Operating Agreement
Whether you are dissolving an LLC, general partnership, a limited partnership, or a limited liability partnership, you should have an operating agreement or partnership agreement that clearly outlines each member or partner’s rights and responsibilities. This agreement should cover the procedures to follow if one or more partners decide to dissolve the business entity. You should follow all the steps and procedures required in this agreement for dissolving the business entity.
- File Business Dissolution Paperwork with the State of Florida
The Florida Department of State’s Division of Corporations regulates business entities in Florida. Businesses register with this agency when they form and notify it when they dissolve by filing the proper forms. LLC members file Articles of Dissolution with this agency when they decide to dissolve or end the business. General partners file Statements of Dissolution forms upon their dissolution. Limited partners and limited liability partners file Certificates of Dissolution upon their dissolution. All business entities must pay a filing fee to submit their respective dissolution documents and to obtain certified copies of their dissolution documents.
- Notify All Interested Parties
You should generally give all interested parties notice of the dissolution of your business entity. These parties may include your creditors, suppliers, customers, and anyone with whom you have a commercial relationship. You can avoid any conflicts or disputes by giving them as much notice as possible and winding up any outstanding transactions.
- Pay Debts, Resolve Tax Issues, and Distribute Assets to Members or Partners
A large part of winding up the business of any business entity is handling its remaining orders, commercial transactions, outstanding debts, and accounts. You should make any necessary tax filings and pay any tax debts. In addition, you may need to liquidate assets, such as selling real estate or equipment. When you have satisfied all debts and liquidated all assets, you can make the final distribution of assets to the LLC members or partners according to the terms of the operating or partnership agreement.
Rely on Kramer Green for the Legal and Business Support that You Need
Our business litigation lawyers have the skills necessary to advise you throughout the process of dissolving your business entity. We know how to protect your interests during the dissolution process and avoid the common pitfalls that can delay or derail a smooth business dissolution. Together, we can work to ease the transition from your role as an LLC member or business partner to your future endeavors, whatever they may be.
We can walk you through the step-by-step process of dissolving your business in the most efficient, cost-effective, and painless way possible. Nonetheless, we will not hesitate to take legal action when necessary to enforce your rights. Contact the office of Kramer, Green, Zuckerman, Greene & Buchsbaum, P.A. today by calling (954) 966-2112 or reaching out to us online to set up a time to talk about your legal issues.