Originally Posted by DaneMcCloud
Hiring a CPA to "go over the books" is meaningless.
What you need is a valuation of the business. It doesn't matter if they put $100k into the business if it's worth $5k.
Originally Posted by NewChief
That's a good point, and we've been told to just go that route (dissolve the business, then reform it as something else under our sole ownership). The main thing we're buying at this point is the brand/identity and, I suppose, the assets in the storefront.
It occurs to me that if this partner is responsible for REALLY piss poor record keeping, you may have tax headaches. You may want to consult with a CPA about whether a fresh start might put you in a better position tax-wise. As I understand it,** generally a stock redemption is NOT a taxable write off, while re-launching the business, if it involves repurchasing hard assets (furniture etc.) is deductible.
If you do have tax headaches, then they may be solely yours if you repurchase the stock, while if you just cut bait and let the company die, then they remain shared 50/50.
**I am NOT a tax professional. Usual "what the **** are you thinking getting legal/tax/important advice on a goddamn football message board" rules apply. :-)