Owning and running a business is hard work. It requires dedication and focus, and in many cases, a cooperative relationship between you and your business partner. But sometimes, difficulties arise in the partnership. You don’t see eye-to-eye on the same issues, or your goals for the future are different.
When business disputes get in the way of your everyday responsibilities, it can cause problems for your company. If you are considering leaving your business, you may be uncertain of some of the options you have.
Consider the following choices so you can make the best decision for yourself and your business:
- Buyout – This is when your partner (who is planning to keep the company) buys out your share of the business. Having a buyout agreement in place can make it easier for you to leave your business without causing more legal issues.
- Transfer ownership – If you want to leave your business for personal reasons such as retirement, maybe you want to pass along your share of the company to a son or daughter or another relative. In these cases, if your partner is agreeable, you could transfer the ownership, and the business could continue as is without your involvement.
- Dissolution – If you and your partner cannot agree to terms about a buyout, or if neither of you wants to continue with the business, then you may consider dissolving your business entirely. This would mean closing your business and determining how to split all your assets between the two of you.
Each of these options can be time-consuming and challenging. Further, leaving a business can be emotional as well, especially if it results in the falling out of your business partnership.
To make the process as easy as possible, consult with an experienced attorney who can help you understand how to protect your investments while also hopefully reaching an agreeable solution for you and your partner.
