The Epstein Law Firm, P.A.
Set Up Your Free Initial Consultation Today
Email Us 201-918-3560

Do you have to close your business when a partnership ends?

You feel like you're going through a divorce, even though you're not married. The problem is your business partner. The two of you started working together five years ago, and it is clear to you that the relationship has come to an end. You can't go on anymore, and you plan to end the partnership.

Does that mean your company has to close its doors? Is the dream over? Do you have to start from scratch?

You may have to close the business, but experts suggest only doing this as your last resort. Do not just assume that the business has to close down. There are ways to get around it.

Types of partnerships

First of all, consider the type of partnership the two of you have. Do you own the business equally? How many other people are involved? Who has the majority share?

The biggest risk here is if your partner is a majority owner with a controlling share. Even then, though, you have options. Can you buy him or her out? For instance, if your partner's stake in the business is worth $500,00, is there any way to buy that share in cash and take over full control? If so, the business may survive.

Did you draft a partnership agreement at the beginning?

Many partnerships begin as informal agreements, but it is wise to get things down on paper with an official partnership agreement. If you did that, it may give you all sorts of options. You may have agreed up front about what should happen in a situation like this, and you both are bound to the agreement. Moreover, if your partner violated the agreement in some way and that's why you want to end the partnership, that could give you the upper hand.

Selling to a third party

A third option to keep the company alive is to sell it off. Doing so obviously has massive ramifications for your own career, but it may mean your employees get to keep their jobs and your customers get to keep buying from the same business.

Depending on the value of your company, selling may even feel like an attractive idea because you could both earn a lot in the sale. This way, after you end the partnership and move on to whatever is next in your career, you have a fair amount of capital to get started. That never hurts if you want to start a new business on your own.

Your options

As you can see, it is certainly not a given that your business has to close. Just make sure you know what options and rights you have as you move forward.

No Comments

Leave a comment
Comment Information | End distracted driving | Speaker - North American High Schools Education Program. Avvo Rating 10.0 Superb | Top Attorney Personal Injury Avvo Rating 10.0 Superb | Top Attorney Lawsuits & Disputes Super lawyer Ten Leaders Million Dollar Advocates Forum New Jersey Supreme Court | Certified Attorney This Attorney is Lead Counsel Rated. Click here for more Information.
Email Us For A Response

Contact Our Hackensack Car Accident Injury Lawyers

To speak with an experienced New Jersey lawyer about your legal needs, please call 201-918-3560 or contact our Rochelle Park office online. We can meet you at your home or in the hospital if you are injured and cannot travel to us.

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Privacy Policy

The Epstein Law Firm, P.A.

340 West Passaic Street
Rochelle Park, NJ 07662

Phone: 201-918-3560
Fax: 201-845-5973
Rochelle Park Law Office Map