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For a small business owner who claims just a percentage of a company, dissolving an incorporation may be easier said than done. For example, if an entrepreneur claims 20 percent of a company with several other partners who each have the same percentage, yet the company has limited to no future financially, that individual may still be required to funnel capital into the company even if he or she is attempting a dissolution.
An entrepreneur's rights depend on whether or not an agreement was set in place when the company was first incorporated. If the agreement required the partners to invest additional capital, for example, then a partner will be unable to get away scot-free.
"However, if the other shareholders choose to put in more capital, your ownership can be diluted," Nina Kaufman wrote for Entrepreneur magazine. "Or, if you refuse to contribute more, the other shareholders can buy you out."
Another option, Kaufman wrote, is to propose that the remaining partners buy out your portion of the interest so the company isn't forced to dissolve, allowing you to leave the company while they continue to carry on.
This article is brought to you by Vcorp Services – Vcorp offers executives, attorneys, accountants, and entrepreneurs an extensive suite of services including entity formations, state filings, document retrieval, tax-exempt filings, UCC filings and searches, 501c3 filings and more. www.vcorpservices.com
An entrepreneur's rights depend on whether or not an agreement was set in place when the company was first incorporated. If the agreement required the partners to invest additional capital, for example, then a partner will be unable to get away scot-free.
"However, if the other shareholders choose to put in more capital, your ownership can be diluted," Nina Kaufman wrote for Entrepreneur magazine. "Or, if you refuse to contribute more, the other shareholders can buy you out."
Another option, Kaufman wrote, is to propose that the remaining partners buy out your portion of the interest so the company isn't forced to dissolve, allowing you to leave the company while they continue to carry on.
This article is brought to you by Vcorp Services – Vcorp offers executives, attorneys, accountants, and entrepreneurs an extensive suite of services including entity formations, state filings, document retrieval, tax-exempt filings, UCC filings and searches, 501c3 filings and more. www.vcorpservices.com
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