I am leaving my business after 10 years in business. My business partner and I have completely different ideas on how to run this. I have always handled sales and marketing while he handled the finance. we have a culture in our company where I leave him alone and he leaves me alone. Recently I did his job while he was on vacation and found that we are in serious debt. I don't believe that this company can move forward with the two of us working together. I told him that I am leaving but would stay for 4 months to help him find a salesman. What should I be aware of before I leave? I know that I have to get my name off of the line of credit and the equiptment leases. Any suggestions?

Dear Mr. Duke:

Since I have worked in a variety of situations with a variety
of clients, my first suggestion is to contact an outside
attorney and an accountant.  You didn't specify whether or not
you would be getting any buy-out money, nor if there was a
partnership agreement in place.  However it's best to begin
your exit strategy now, especially since you noted that your
company was in serious debt.

It's likely you are responsible for the debts since you are a
partner in the company, and depending upon how your business
is set up, it can definitely affect you.  Also you will need
to get an independent audit of your books, especially if
you've never done it before, hence the outside accountant
referenced previously.  It may seem more trouble than what
it's worth now, but it'll be better in the long-term.  Let me
know if I can offer any other assistance.


Dwayne J. Briscoe, Owner
Bookkeeping-Results, LLC
5680 Highway 6, #129
Missouri City, TX 77459
http://www.bookkeeping-results.com
888-692-2083 (office)
713-898-1648 (cell)

I had an eye opening experience myself, in the same arena. You need to get contracts/agreements in place now, even if some/none existed previously, detailing either that you are both 50% liable for existing bills up to a SPECIFIC date. But after that date, you are no longer financially liable, and exist solely as a consultant. Do it now.... or those four months of bills after may be shocking. Your partner may decide that if it's to be a sinking ship, it should be the Titanic. You don't want to incur ANY more than you are already liable for.

my .02 cents