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Converting Partnership to Sole Proprietorship

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Question: 
One of our customers has approached us and asked that we convert his partnership account to a sole proprietorship account. Can he operate the same account as sole proprietorship or does he need to open a new bank account?
Answer: 

My brother and I are two different people. Would you let one of us "give" his account to the other? wink

The sole proprietor and the partnership are two different people. If he wants to close the partnership account, he can write himself a check and deposit it to his newly opened sole proprietorship account.

If you allow the conversion of an entity account to a single ownership account you just disenfranchised the other owners. They may not like it.

First published on 06/17/2018

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