Asset from liquidating partnerships

20 Jan

The specific forms and filing fees will vary by state. Contact the departments where the partnership acquired any permits or professional licenses, such as the department of health or agriculture.Canceling licenses and permits will protect your finances and your professional reputation.In most states, a general partnership is formed whenever two or more individuals decide to carry on a business.

Liquidation is a process of selling the business's assets, paying outstanding debts and dividing the remaining assets among the partners.

An unincorporated organization with two or more members is generally classified as a partnership for federal tax purposes if its members carry on a trade, business, financial operation, or venture and divide its profits.

However, a joint undertaking merely to share expenses is not a partnership.

A limited liability company (LLC) is an entity formed under state law by filing articles of organization as an LLC.

Unlike a partnership, none of the members of an LLC are personally liable for its debts.