Starting a company with a partner in Houston takes a leap of faith, along with plenty of trust in your co-owner. The paperwork that you filed together was essential for starting the business, and ending it can be just as complex. We at the Jackson Law Firm have worked with many business owners to navigate the process of business dissolution in Texas.
The Small Business Administration explains that just as you developed a partnership agreement at the beginning, you may now benefit from creating a dissolution agreement. How the assets and liabilities of the company are divided between you and your partner typically depends on the percentage of ownership each of you have. If the two of you do not see eye to eye on the value of these, a professional valuation may be helpful to prevent any bias.
You and your partner may have many contracts and agreements for which you are still liable, even though you are no longer in business. For example, you may have a lease on commercial property, and closing your doors does not do away with your responsibility for making the payments. However, in some cases, negotiations may be possible to reduce the amount you and your partner will be required to pay to be released from the agreements you have signed.
Once the details have been resolved, it is time to file a statement of dissolution with the state, which effectively ends the business relationship. For more information about issues that may arise from legal disputes between partners, please visit our web page.