Hey guys just split partners need some guidance!

Discussion in 'Business Operations' started by Craftybigdog, Apr 7, 2003.

  1. Craftybigdog

    Craftybigdog LawnSite Senior Member
    Messages: 425

    Hey guys me and my partner just went our seperate ways. Now to set the stage, I have all the equipment and all the accounts. But my question now is I will have to change our business lic. to sole propertiership and what else can you think of and what about the taxes that have to be paid on the snow we removed this Jan, Feb.? He will have to pay that right? Thanks for all the input.
  2. bruces

    bruces LawnSite Senior Member
    Messages: 648

    If you were a partnership or LLC taxed as a partnership, you probably have a termination of the partnership. Each partner would get their share of the income / deductions from January 1 to time of termination.

    Technically, the final partnership tax return is due the 15th day of the 4th month following termination of the partnership. Talk to your tax person, the return will be due before April 15, 2004.

    And yeah, now you probably have a new business entity, whether you set up an LLC, corporation or sole proprietorship so you probably need to change your licenses and tax registrations to reflect how you are operating now.

    Check with your accountant and or attorney to figure out what you need to do for your state.

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