What is the process for dissolving a business partnership in California?

As a lawyer practicing in California, I can provide guidance on the process for dissolving a business partnership in this state. In California, a partnership can be dissolved by mutual agreement of the partners, expiration of a partnership term, or under certain circumstances allowed by state law, like a partner's death or bankruptcy.

If the partnership agreement specifies the requirements for dissolution, those must be followed. If the partners of a partnership have agreed to dissolve the partnership, the first step is to agree on terms of termination. This typically includes deciding how the assets of the partnership will be divided and the liabilities settled. Partners should consider hiring an accountant to assist in valuing business property and assets if there are significant assets involved.

Once the partners have agreed to dissolution terms, written notice needs to be given to anyone doing business with the partnership, such as employees, creditors, or any customers with open orders. The partnership must also file a "Statement of Dissolution" with the Secretary of State no later than 90 days after filing a "Certificate of Dissolution".

The partners should formally close all business accounts, pay any remaining debts, terminate leases or other contracts, and begin liquidating assets. If the partners cannot agree on the terms of dissolution or the dissolution is being caused by a partner's wrongful acts or breach of the partnership agreement, legal action may be needed.

Partners may require the assistance of an experienced attorney to pursue legal remedies, including dissolution of the partnership through the courts. In such cases, it can be helpful to have an attorney representing each partner's interest. In conclusion, the process for dissolving a business partnership in California can be complex but with legal guidance, the partners can achieve a successful dissolution that protects their interests and satisfies legal requirements.

If you have any additional questions, I recommend hiring a licensed attorney to guide you through the process.