2016-12-09 00:00:00 Partners and Related Parties English Learn how to terminate relationships with troublesome small business partners without putting your profits on hold. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/business-partners-discuss-falling-out.jpg https://quickbooks.intuit.com/ca/resources/partners/how-to-divorce-your-small-business-partner/ How to Divorce Your Small Business Partner

How to Divorce Your Small Business Partner

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The honeymoon period is over, and things aren’t looking so good between you and your business partner. Disputes and disagreements don’t have to bring your small business to a standstill. Take these steps to keep your company intact while resolving relationship problems.

*Review your partnership agreement – Are you and your partner fulfilling your outlined responsibilities? Would a revised agreement or a limited partnership better suit the situation?*Consider your options – When divorce is inevitable, your partnership agreement should lay out your possible courses of action. In some situations, the business entity must be dissolved and restarted. In others, one partner may purchase another partner’s interest in the business.*Call the Canada Revenue Agency – Any change in the structure or ownership of a small business should be reported to the CRA. The CRA can help you decide if your restructured business is a new legal entity.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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