What should I be aware of when I end my business partnership?
Question Details: I own a company with a partner; I'm 49% and he's 51%. He is buying me out. We are going to attempt to handle it between the 2 of us. What things should I be aware of or do?
The main thing to be aware of is that him buying you out does NOT affect your obligations to third parties, so if you signed any contracts or leases in your own name, or personally guaranteed any contracts, loans, leases, or other obligations/debts, you will remain liable for them even after you have been bought out. Your buyout agreement should therefore include that your partner and/or the business itself will indemnify you (pay on your behalf) any business-related liability which was incurred while you were a partner.