I Fell into the “Unintended Partnership” Trap – How do I Climb Out?
Earlier this year, I wrote about how business founders who agree to split earnings from their venture can find that they have unintentionally created a general partnership (Beware the Unintended Partnership). The problem: Any partner can subject all of the partners to unlimited personal liability for partnership obligations!
This post provides an overview of how an unintended, or otherwise undesirable, California general partnership can be terminated.
Half or more of the partners can decide to wind up the business of the partnership and dissolve it (California Corporations Code Section 16801(1)).
