I've run the family farm as a partnership with my three sons for several years, but it's time for me to retire. No one else will buy my partnership share, it will go to my sons.
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
When a partner decides to retire from the partnership, legally it is treated as if a new partnership has been formed and the old one ends. This is because the persons running the partnership are now different. Sometimes, the Australian Taxation Office (ATO) will require that you register for a new tax file number or ABN. However, as you are just retiring and no new partners are coming on board, it may be much simpler for you and your sons. Licenses and registrations may not need to be altered. It really depends on your particular business circumstances, and it is important to engage a lawyer to assist with this transition, and to help minimise any potential taxation implications.