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I am the 50% owner of a company in NJ. The partnership is…

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I am the 50% owner...
I am the 50% owner of a company in NJ. The partnership is between me and my brother. I want to forgo my ownership and get my name off the company. How do I go about doing that.
Submitted: 6 months ago.Category: Tax
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Customer reply replied 6 months ago
08 November 2017 07:40
I am 50 % owner of a NJ based company. My partner is my brother. We do have equity and also debt against equipment that we are paying down. I haved signed personal notes for some of the equipment we are paying off. The notes will be paid off in about another year. I want to forgo my ownership in the company. I do not want anything from my brother. I have other companies that are taking most of my time up and just want to get my name off of this particular partnership. How do I go about doing that. Do I need to hire a lawyer? Is there a procedure than can be started to decrease my ownership? Basically what are the steps I need to take? Thanks
Answered in 10 minutes by:
11/9/2017
Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 6 months ago
Chad EA, CFP ®
Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional
Category: Tax
Satisfied Customers: 2,338
Experience: Federally licensed IRS Enrolled Agent, Certified Financial Planner (R), MBA
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Hello! My name is ***** ***** I will be able to assist you today.

First, you and your business partners need to vote to dissolve the partnership. Record the decision in writing.

You'll want to discuss the responsibilities of each partner regarding the debts and any future liabilities of the partnership. For instance, if Partner #1 pays off his half of the partnership's debt but Partner #2 fails to pay off his half (or files for bankruptcy), creditors can still come after Partner #1 for the rest of the partnership's debts.

General Partnerships ending their business operations should take care to properly close out their tax liabilities by filing the applicable changes to their tax/employer account

Here is a link to "ending your tax registration in New Jersey"

http://www.state.nj.us/treasury/taxation/pdf/pubs/sales/anj13.pdf

If you formed an LLC in New Jersey then click on the link below to ACCESS THE ONLINE FILING SYSTEM

http://www.state.nj.us/treasury/revenue/dissolve-cancel.shtml#undefined

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 6 months ago

If you did not form an LLC or corporation then you merely need to dissolve the partnership with a vote and put the vote and determination in writing. Then you need to close out any tax liabilities the partnership may have.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 6 months ago

New Jersey also allows you to report closing a business online using the link below. "closing a business" is a blue hyper link on the mid to bottom left hand side under "business filings"

https://www.njportal.com/dor/annualreports

Contact information for the state of New Jersey tax registration.

Customer Service Center at(###) ###-####

e-mail***@******.***

http://www.state.nj.us/treasury/taxation/

If you need further information please let me know.

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 6 months ago

Hello,

Do you have any follow up questions? Would like for me to expand on my answer above? Please let me know! If you have no further questions and at the conclusion of our conversation please take a moment to accept the answer by rating the answer with three stars or more. A positive rating of five stars is always appreciated. Thank you!
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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 6 months ago

At the conclusion of our conversation please take a moment to accept the answer by rating the answer with three stars or more.

A positive rating of five stars is always appreciated.

Thank you!

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Tax Professional: Chad EA, CFP ®, CERTIFIED FINANCIAL PLANNER TM, Professional replied 6 months ago

Hello,

If you have no further questions please accept the answer so I may be credited for assisting you.

Thank you

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