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Splitting Your Business in 2022? Let us Help Protect Your Interests

Splitting Your Business

If you are planning on splitting your business in 2022, there are different things you must do legally in the state of California. If you don’t adhere to these regulations, you may encounter a lot of costs, taxes, and fees. Having said this, the following includes what you should do to properly split your business:

Partnership

Most business partners draft a written partnership agreement, even though it’s not required to have a partnership agreement in California. Nevertheless, a written partnership agreement is a good legal document because it will answer some relevant questions.

Notifying Creditors, Employees, Suppliers, Clients, and Customers

You should notify creditors, suppliers, and others that you are dissolving your partnership even though it is not legally required to do so. Doing this will ensure you won’t be on the hook if a partner makes a deal with someone after the dissolution, for instance. So, give a written notice that you are dissolving your business.

Final Tax Issues

Before dissolving your partnership, please note that there’s no requirement that you’ve gotten a tax clearance. However, according to the California Tax Board (FTB), you are required to file a final tax return for any state taxes due and for your partnership.

Additionally, if you have a seller’s permit, you must write to the California State Board of Equalization (BOE). You must tell them that you are dissolving your partnership.

Other Paperwork

There may be other required paperwork as well. Say, for instance, you filed a Statement of Partnership Authority when you launched your company. If so, you also must file a Statement of Dissolution. This must be done through the California Secretary of State.

How Your Attorney Can Help

An attorney will consult you and take you step-by-step with such legalities. And with business dissolution being a complicated process, this lawyer will fight hard with all the required paperwork and more.

In Closing

For more information about splitting your business, contact Brockmeier Law Group today! This Orange County business litigation law firm has been working with business litigation cases in the state of California for over a decade. Also, the record of this Orange County business litigation lawyer speaks for itself with awards and recognitions.

You won’t go wrong with this business attorney in Orange County. So, contact them today!