Can a Partnership Have Just One Partner?

This post’s title question about a one-partner partnership might seem silly: The common-sense answer is “No”, because one cannot be one’s own partner. As I learned recently working with a client who wants to dissolve a partnership, this is one situation where the law (in California, at least) and common sense agree.

To start, Corporations Code Section 16101(9) states that a partnership requires two or more partners.

Last year, in Corrales v. Corrales, the Court of Appeal for the Fourth District, Division 3 (courthouse pictured) answered an interesting question: What happens to a two-person partnership when one partner withdraws?

The court’s answer: The partnership automatically dissolves, and the former partners are obligated to settle their accounts in accordance with Corporations Code Section 16807.

So whether you are starting a partnership or watching one much later in its life cycle, every partnership must have at least two partners.

Check out all posts about partnerships.

Photo credit: Google maps

Dana H. Shultz, Attorney at Law  +1 510 547-0545  dana [at] danashultz [dot] com
This blog does not provide legal advice and does not create an attorney-client relationship. If you need legal advice, please contact a lawyer directly.