Follow-Up Discussion

Choose one of the articles that your classmates have posted, and provide your own reaction to it.

Classmate answer to the question that I need to respond to.........classmate answer below to this question

Initial Discussion (question )

Please access an online article regarding partnership dissolution and read it in order to prepare a summary and reaction. In the subject line of your post, include the name of the article that you read. Post a link to that article with your initial post, and provide a summary and a reaction to the article. The summary should be approximately 250 words, and the reaction should be approximately 150 words. Reaction should include an opinion or an interpretation of the materials. Some students may apply the reading to work experience, and others may comment on how it might be applied. The summary should describe the major points of the article, and the reaction should demonstrate your interpretation of the article and how you can apply that knowledge.

Classmate answer

Exiting or Dissolving a Business Partnership Your Options and the Process Explained

The article Exiting or Dissolving a Business Partnership Your Options and the Process Explained describes what happens when a partnership dissolves if a partnership agreement is in place and when the agreement has not been established. There will be circumstances, such as a partner losing interest or wanting to retire, that constitute a partnership dissolution. This works best for all parties when a partnership agreement has been put in writing at the formation of the business. Even though these are not required by law, it is best to have an agreement that includes a dissolution strategy. Each state has specific laws for this process and typically takes about ninety days to complete the dissolution. It is important that all partners complete all agreements, know what the business is worth, and have an understanding of current leases, contracts, and loan agreements.

If there was not a dissolution agreement in place, it is advisable to attempt to work out the details independently or seek advice from an intermediary. If the situation necessitates court involvement, the assets and liabilities will most likely be split 50-50. There are no direct tax consequences of dissolving a partnership, but you will need to account for business-owned property that has appreciated in value and for payment of business and employer taxes (Beesley, 2012, para. 13). When the tax return is filed, the partners need to notify the tax authorities that the partnership has been dissolved. The partners also need to ensure that all costumers and supplies are notified as well.

I agree with the points made in this article. One aspect that this article highlights is the importance of having a partnership agreement, which includes a dissolution clause, in place at the beginning of the partnership. The partnership dissolution stories I have heard from friends and family often involve lots of emotion and disagreements, even when they had previously worked well together. If the dissolution process is agreed upon when those types of feeling are not present, it seems like it would make for a much easier transition. There might still be small details that are not covered in a partnership agreement, but the more controversial items should be defined, especially if the partners received legal help when writing it.

Reference

Beesley, C. (2012). Exiting or dissolving a business partnership your options and the process explained. Retrieved from https://www.sba.gov/blogs/exiting-or-dissolving-business-partnership-your-options-and-process-explained.

Now I need you to do a follow up discussion for the classmates answer to the above question. Below is what I need to turn back in please reference anything used.

Follow-Up Discussion

Choose one of the articles that your classmates have posted, and provide your own reaction to it.