There are a number of templates and fill-in-the-blank forms available on the internet that you can use to create your business separation agreement. Some of these forms are free, while others require you to pay a small fee.Read through an agreement form or template carefully and make sure you understand everything it's saying. If the form includes any instructions or explanations, read those as well.
If anything doesn't apply to your business, you can always leave it out of your agreement.
You may want to download several so you can borrow language that best fits your situation. There's nothing that says you can't pull clauses from one agreement and put them into another – just make sure you're not contradicting yourself within the agreement.
If you are operating under a partnership agreement that includes clauses related to partnership dissolution and the winding up of the business, you can create a simple, one-page separation agreement that simply refers to those clauses.;
, If you are currently operating your business under a written partnership agreement, you can use that to write your separation agreement. However, if you don't have a partnership agreement, you'll need information about what each of the partners does and how your business's finances are handled.Gather all the documents you have related to your business, including financial records and account statements.
You may want to create a table that lists all accounts or assets related to the business, and whose name is attached to each of them. This will make it easier for you to wind up the business later on.
You also want to get together copies of any state registration, licenses, or permits for the business so they can be addressed in the separation agreement.
 The formatting requirements for a contract are straightforward, and you can create the document using any basic word processing application on your computer. Setting formatting requirements such as font and margins before you start writing will ensure your agreement looks the way you want.Use a simple, readable font such as Times New Roman in a 12-point size.
Contracts typically are single-spaced, with a double space between paragraphs. If you have a particularly long agreement, you may want to identify sections with bold headings.
Keep in mind that a contract is not like a short story or a narrative. It is a utilitarian document that will seldom be read all the way through. Rather, it needs to be organized so that you and the other partners can find the information that you need when you need it without having to read through clauses that don't apply to your situation.
 The first part of your business separation agreement must identify the business and each of the partners. List each partner, including yourself, by name and title or role in the business.In this first section, you also will identify the document as a "business separation agreement" or a "partnership dissolution agreement" and include the date when it is signed.
Which title you use is up to you for the most part. However, titling the document a "partnership dissolution agreement" generally makes more sense if the business plans to cease operations after the separation.
If your partnership is organized as a specific type of organization, or if it is a partnership of organizations, provide that information as well.
For example, you may have a partnership with an LLC made up of two members. Name each of the members of that partnership, and specify that the partnership is between you and the LLC.
 The next part of your agreement contains a number of brief paragraphs known in legal circles as "whereas" clauses. These paragraphs describe the partnership and what this agreement will do to dissolve that partnership.If you are currently operating under a written partnership agreement, you can copy some of these clauses, such as those that describe the original purpose of the partnership, into your business separation agreement.
Include a summary of the total financial contributions made by each partner to the partnership, as well as the total contributions of assets and capital.
Then list the specific steps that will be taken to dissolve the company or explain how the remaining partners will carry on after the separation.
You may want to discuss the reasons for the separation, but it isn't legally necessary to do so.
 The bulk of your agreement will be dedicated to listing each aspect of your business and how it will be handled after the partnership itself is dissolved. Typically you'll organize these aspects into categories such as "dissolution" and "release."If you're simply referring to the clauses dealing with dissolution and winding up of the partnership that were included in your formation agreement, there's no need to go into detail here.
You can simply write "The Partners hereby dissolve the partnership pursuant to Section X of the Partnership Agreement." Similar language would also work for winding up, if the business is going to be liquidated as a result of the separation.
However, if you don't have a written formation agreement (or if it doesn't include clauses for dissolution and winding up), you'll have to draft clauses that describe all the terms and conditions of your separation from the partnership.
After these sections, you'll include a number of clauses commonly called "boilerplate" in legal circles. These clauses, which handle issues such as indemnity and choice of law, typically can be copies directly from a form or template agreement.
 All partners should have a chance to read over the separation agreement before they sign it, so they can make sure they understand and agree to what will happen with the business after you leave.Even if you've already discussed the separation, each partner should have the opportunity to review the agreement and make any suggestions.
If changes are proposed by one of the partners, those changes should be circulated among everyone.
An easy way to do this is to email a digital copy to all partners. Any changes or comments they want to make can be shared by clicking "track changes" in their word processing application after opening the document.
This also makes it easier for you to incorporate these changes, because you can accept the changes with one click.
 If the partners disagree over the valuation of the business's assets, or if someone else is planning to buy out your share of the business, you may want to have an independent third party conduct a valuation of the business.If the remaining partners plan on continuing the business after you leave, you'll typically be repaid for whatever financial or capital contribution you made to the partnership when it was formed.
Questions about the value of your business can be resolved by an independent business valuation. You also can use free small business valuation calculators available online to get a quick understanding of the value of the partnership.
Whether you hire someone to conduct a valuation or do it yourself using an online calculator depends on the amount of assets the business has as well as the relationship between the partners.
 In some cases, dissolution of a partnership can have significant legal, financial, and tax consequences. Particularly if your business has significant assets or liabilities, you may want to get an expert's opinion on your business separation agreement.Tax consequences come into play primarily if all the partners plan to liquidate the business after the separation.
Otherwise you should be fine on your taxes, just make sure you let the relevant tax authorities know that the partnership has ended.
Having an attorney look over your agreement is generally a good idea, especially if you've drafted it yourself.
The only time this shouldn't be necessary is if you have the simple, one-page document that simply refers to the dissolution and winding up clauses in your partnership formation agreement.
 Once you've consulted with all partners and any legal or financial experts, use that information to amend sections as necessary and create the final version of the agreement.If significant changes have been made, you can circulate the revised document among the partners the same way you submitted your first draft.
Simply email the document to all partners, and allow them to comment or make changes by turning on "track changes" in their word processing application.
In most cases, you shouldn't have to circulate the agreement more than twice. If there continue to be significant problems, you may want to consider bringing an attorney in to mediate the dispute between the partners.
 Every partner should sign the business separation agreement. Make sure you have a copy for each partner so everyone has a signed original for their own records. If the business is continuing operations, you also may want an additional copy for the business's records.All of the partners should sign the agreement at the same time in the presence of a notary public.
The notary verifies your signatures, which insulates the agreement from any questions or challenges later on.
Each partner ideally should have a copy with all original signatures. You also can make photocopies of the completely signed document for other filings.
 If you were required to register your partnership with the state where your business is located, you also may be required to file a copy of the business separation agreement.Check your business documents to see what you filed with the state. You also may call your secretary of state or another state business association to find out if you need to file the separation agreement specifically.
You typically will have to adjust any partnership registration as well. If the remaining partners intend to carry on the business after you separate, they must create a new partnership that doesn't include you.
For this reason, any state registrations or business licenses that include your name as a business owner or member of the partnership are no longer valid.
 Each contract or agreement may have a clause that automatically terminates the agreement if the partnership dissolves, even if the remaining partners plan to continue the business.If the remaining problems plan to continue operating the business after you leave, they'll typically need to renegotiate these contracts.
Any remaining amounts owed to those clients or vendors should be taken care of before the separation is finalized, with you taking on an appropriate share of that liability.
Even though you're leaving the partnership, you can assist with this transition to assure the business does not lose business unnecessarily as a result of your separation.
Depending on the type of agreement, you may remain locked into it regardless of your partnership status. Any of these contracts should be taken into consideration in your separation agreement.
This could be the case if, for example, you signed a commercial lease in your individual capacity. In this situation, if the partners plan on continuing the business, they may want to talk with the landlord about buying out the lease.
 As you're winding up the partnership, let anyone potentially affected by the separation know in advance. This is particularly good practice if the business is continuing to operate.This is particularly true for employees. Even though the remaining partners may be planning to continue running the business, it can be disconcerting to show up at work and find out one partner is gone without any warning.
Particularly if the other partners are continuing the business, it's important for you to let customers know that you are planning on leaving but that they should feel comfortable continuing to do business there.
This can be a difficult situation if there are significant disagreements between you and the other partners.
However, it's usually in everyone's best interests to keep your personal disagreements quiet to preserve the reputation of the business. Try to avoid inciting too much drama or airing your dirty laundry in public.
 If the business is going to close, all licenses and permits must be cancelled to avoid continued liability. However, even if the remaining partners plan to continue operations, they may still have to cancel the old licenses and permits and get new ones.Typically, licenses and permits are issued in the name of the business. However, if the name of the business is wrapped up in the names of the partners, or if each individual partner's name is included on the permit or license, these should be cancelled.
Look at the names on any of these licenses and permits the business needs to operate and contact the issuing agency to find out what you need to do.
You may be able to remove your own name simply by providing a copy of the business separation agreement to the issuing agency.
 Your name should be removed from any business accounts after the separation. You and your partners also will need to make arrangements regarding any partnership debts and liabilities.For example, if you need to remove your name as a signatory on business bank accounts, typically you and all the other partners must go to the bank in person to remove you from the accounts.
If your name is on any business credit cards, or if you are included on any business loan documents, you'll need to take care of those as well.
In some cases you and your partners should simply pay the debt and close the account as part of the separation.
However, if this is impossible and the remaining partners plan to continue the business, they may need to renegotiate with the business's creditors.
 Even though the partnership has been dissolved, you still must maintain all business records for between three and five years. The length of time you must maintain these records depends on the types of records they are and the laws that govern them.Typically you'll include a section in your business separation agreement that dictates who will be in charge of maintaining business records.
If the remaining partners plan to continue the business, it makes sense for them to keep operating and employee records, since they typically will still need them to run the business.
You should have your own original copies of any contracts and other agreements associated with the partnership.
Keep the formation agreement and the business separation agreement together in a safe place. To some extent, the separation agreement is a part of the formation agreement since it ends the partnership.
Search for templates.
Gather information about your business.
Format your document.
Identify the parties.
Describe the purpose of the agreement.
Outline the terms of the separation.
Submit your draft to your partners.
Complete a business valuation.
Consult an attorney or accountant.
Make any changes or corrections.
Sign the final agreement.
File your agreement with the state.
Go over business contracts and agreements.
Notify customers, suppliers, and employees.
Cancel licenses or permits.
Resolve the business's finances.
Store all records.
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