Hi, A few years ago we opened a general partnership making toys and clothes with some friends of ours. Due to the recession they need to leave the business and they want us to change the name. In the interest of good will we agreed.
It is a very small business with low cash flow and I'm trying to figure out the best and least expensive way to make these changes. We do business in California. Because they are leaving they are taking half our cash, so it leaves us cash poor.
Of course I am having trouble figuring out what to do when it comes to our business name.
1)Should we just abandon our name?
2)Or can we do a partnership withdrawl form for our friends and wait for the name to expire? It looks like the name expires after 40 days if the partnership withdrawl form is not published.
3)What happens when a business name expires?
4)Then we could just add another business name and publish it?
5)Is is possible to publish multiple changes in one publishing?
6) Is there anything I need to do to address the change in business type from general partnership to sole proprietorship?
It looks like we could be out like $160 if we have to file and publish the abandonment form, partnership withdrawl form and new dba form.
I hope that all makes sense.
Then I have to file new forms at the BOE, aquire a new EIN, and change our business liscense as well.
The forms for the BOE are straight forward, thank goodness.
I think the tax changes are fairly simple as well.
Is there anything I'm missing?
I know that is a lot for my first post. :) If anyone can take on some or all of these questions I'd be so grateful!
NancyJ | Community Moderator |
6/16/2009 - 11:38 am
Hello Maika, and welcome to the business.gov community forum. Our site has a portal to California state business sites, and there may be some useful information there for you, including this list of CA forms for general partnerships. You may also want to post your question on the general business forum area
Best wishes,
NancyJ
In California, there is a form called 'Certificate of Continuing Business under Pertnership Name after Withdrawal of Partner'
Whether you should hold on to the business name or not depends on how popular, and/or how successful the business was. If the business was doing well, there is no reason for you to want to give up the name, and as long as you have not given your friends/partners a written assurance that you will change the name, you do not have to. Just get them to withdraw and carry on with the business under the same name. Of course, this changes if there are significant debts outstanding under the business name, in which case you may want to give up the name.
If a business name expires, you will have to go through the whole process of applying for a new name, and can't just reactivate the name, as it will now be available to all.
Hope these help
George
NancyJ | Community Moderator | 6/16/2009 - 11:38 am
gjosephus | Contributor | 8/13/2009 - 9:38 am
gjosephus | Contributor | 8/18/2009 - 10:41 am
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