Though taking risks in the business world is necessary, it is always important to weigh the pros and cons. Many Florida business owners undoubtedly took the time to consider whether taking on a business partner was right for them and their company, and even if it was at the time, these relationships can take a turn. As a result, dissolving the partnership may be necessary.
Though a business partner could help bring on new customers and resources, it is vital that the partner is trustworthy and that protective measures are put in place. However, even with a measure of trust and important benefits, many business partnerships dissolve within 10 years. Because of this possibility, including information on how to handle partnership dissolution in a partnership agreement from the beginning is wise.
Owners may also benefit from doing thorough background checks and financial information checks, which could include:
- Criminal background check
- Personal and professional reference check
- Credit score and history check
- Tax return review, if agreeable to providing such information
While these precautions could help determine whether a person is trustworthy on paper, one may never know how a partnership will turn out until it gets underway. If Florida business owners find that their partners are not adhering to the partnership agreement, have committed financial crimes against the business, are overstepping their bounds as a partner, or are taking other actions that put the company in jeopardy, it may be necessary to consider dissolving the partnership. If so, it is imperative to have the right legal help and to ensure that dissolution steps are taken in accordance with agreements and state laws.