The statement of dissolution may be downloaded and filed free of charge. Then mail the original documents back to the Secretary of State's office in Sacramento.
Partnerships dissolve as part of the natural progression of a business.
They can occur as a result of retirement, disputes, and other circumstances, and oftentimes the business continues in one form or another. Sometimes a growing business that began as a general partnership will dissolve in favor of incorporation or limited partnership so that the partners can take advantage of the protection from liability that those structures provide. In a general partnership, every partner is personally liable for debts incurred by the others on behalf of the partnership, so it's important to wind up a partnership according to Hoyle. As soon as the partnership is dissolved, file the statement of dissolution, Unger says. The California Corporations Code provides that 90 days after the statement is filed, third parties are considered to have knowledge that no partner has authority to enter into binding transactions on behalf of the partnership other than to wrap up the business.