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We are a firm
dedicated to helping
companies, businesses
and individuals through
financially difficult
times. | | |
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Partnership - Business Failure |
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Business failure, or colloquially going out of business, refers to a business ceasing its operations following its inability to make a profit or to bring in enough revenue to cover its expenses. The final step is always that the business runs out of cash. It has been said that running out of cash defines business failure. This is the basis of the expression, "cash is king".
Businesses fail as a result of wars, recessions, accidents, debtor problems, high taxation, high interest rates, excessive regulations, poor management decisions, insufficient marketing, inability to compete with other similar businesses, or a lack of interest from the public in the business's offerings. As well, some firms can be sold to another owner, or merged with another firm. Some businesses may choose to shut down prior to an expected failure. Others may continue to operate until the very last day before they are forced out by a court order. Yet with some small businesses, the owner may voluntarily cease operations not due to financial constraints, but as a result of a personal decision, such as retirement.
Whatever the reason a planned exit is always better than having no plan. We prepare a formal straregy to get you through the current difficulties and get out the other end in the best posible position. We understand the situation and will assist you to get through in the best financial position while meeting your legal obligarions. |
| Partner's Liability |
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Perhaps the most important question for any partner is 'what is my liability under this arrangement'.
In essence, the liability of a partner (or even a non-partner who was 'held out' to be a partner see below) is significantly large. Every partner or person held out to be a partner is both an agent and principal of the firm and may thus bind the firm and the partners: Simply, each partner is his brother's proverbial keeper and will be responsible both legally and financially for the actions of the other partners in the general course of business. |
| Business Structure |
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As can be seen from above a partnership business structure is NOT the best structure. All partners are responsible for all the debts f the business and even in some circumstances can be responsible for the personal debts of your partners.
SO IF YOUR BUSINESS FAILS you are personally responsible for all the debts of the business and are in need of real help. |
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If we can help please give us a call! | | |
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