Sacramento Business Dissolution Attorneys
Dissolving a business in California can be as difficult and complicated as ending a marriage. When partners decide it is time for a business “divorce,” an experienced Sacramento business dissolution lawyer can provide the information needed to make the right choices, offer expert legal representation, and ensure maximum compensation.
Several factors determine whether or not partners can dissolve a business, and even under the most amicable circumstances, the process is complex. Often, it is remarkably time consuming. The entrepreneurs must divide or reallocate assets, properly rearrange finances, and determine rights to the company’s future practice. A Sacramento, CA business attorney can facilitate a dissolution as quickly and painlessly as possible—even if bad blood is an issue.
The Decision to Dissolve
The first step in ending a business relationship or operation is for the partners to decide whether or not the enterprise will continue. Even if the owning partners are at each other’s throats, having an expert legal team mediate may turn a potentially ugly “divorce” into an amicable separation. Sometimes, those involved can salvage the company with something as simple as a small change to its operating structure, by-laws, charters, or other contracts.
Evaluate the Next Steps
If the disagreement is too severe or the process has escalated to the point that the enterprise will definitely require dissolution, someone who understands California business law should evaluate potential outcomes. In some cases, one of the owners may buy out the other, and determining future rights and the value of the assets that will change hands is a priority. If neither partner is interested in maintaining ownership of the business, an interested third party may be willing to purchase the company.
Regardless of which route the dispute takes, there will likely be issues that complicate the situation. A trained legal eye will know what to evaluate during the dissolution process and how any further complications will impact the result. Competent, skilled legal counsel can help resolve or prevent any number of issues, including:
- Lingering insolvency in the business’ finances will undoubtedly impact the new owners or the partners after the complete dissolution of the company. If the enterprise is failing and expected to disband entirely, someone will have to cover pending debts.
- The damage done to the company’s image or customer base may hinder future sales or viability. If the rights of ownership transfer, the new owners must be aware of what they are undertaking and assess the damage control that may be necessary for the enterprise’s reputation after an ugly legal battle.
- Resolving business relationships that may fracture in the dispute is often difficult. Employees, contractors, or suppliers may hesitate to continue working if their involvement risks their own profitability or livelihood. They will usually demand financial guarantees that their partnership is going to continue in the some capacity.
- Pending litigation or past violations of federal or California state law can involve numerous types of claims or fees.
- The former owners must address transfers of ownership for leases, contracts, or other agreements, depending on whether the business will continue after dissolution of partnership.
No matter what the issues may be, a skilled business dissolution attorney in Sacramento, CA understands how emotionally taxing business dissolutions can be for all parties involved. The Boyd Law Firm in Sacramento, CA creates an individualized and specialized approach to partnership dissolutions for effective mediation. We offer compassionate and thorough legal counsel for any dissolution process. We can guide you through this trying process, advise you on legal options and any pertinent issues, and help you come out ahead on the other end. For more information, contact us to schedule a free consultation.