What is the procedure for winding up a partnership?

In Washington, the procedure for winding up a partnership is prescribed by Commercial Law. Generally, a partnership ends when the partners agree to wind up the business, when one partner dies or becomes incapacitated, or when a court orders the termination of the partnership. When winding up a partnership, the partners must refer to the partnership agreement. In accordance with Commercial Law, this agreement should outline the procedures for winding up the business. First, the partnership must collect all assets. This includes any money owed to the partnership as well as liquidating all partnership assets. Then, the partnership must use the assets to pay off partnership debts, such as outstanding taxes and other liabilities. Any remaining assets should then be distributed to the partners in proportion to their respective interests in the partnership. If there are any disputes between partners, a court may need to become involved in order to resolve the issue. Once all debts and assets have been accounted for, the partners must prepare required documents such as final partnership tax returns and the final partnership financial statements. Finally, the partnership must file a certificate of dissolution with the state in order to officially dissolve the partnership. After the state approves the dissolution, the partnership is legally terminated.

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What is the procedure for winding up a partnership?

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