§ 16705 Partner Name Liability Limits

Corporations Code·California

AI SummaryVerified

This law says that if a partner leaves a partnership, the remaining partners can keep using the old partnership name (or part of the former partner's name) without automatically making the former partner responsible for the partnership's debts or promises.

Key Takeaways

•Using the old partnership name doesn’t automatically make a former partner liable.
•Liability depends on other factors, not just the name being used.
•The rule has been in effect since January 1 1997.

Example

Three friends start "Smith, Jones & Lee Consulting." Lee quits, but Smith and Jones keep calling the firm "Smith, Jones & Lee Consulting." Later the firm owes money to a supplier.

Even though Lee's name is still in the business name, Lee isn’t automatically on the hook for the money the firm owes just because his name is used.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 16705 Partner Name Liability Limits

Continued use of a partnership name, or a dissociated partner’s name as part thereof, by partners continuing the business does not of itself make the dissociated partner liable for an obligation of the partners or the partnership continuing the business. (Added by Stats. 1996, Ch. 1003, Sec. 2. Effective January 1, 1997.)

Last verified: January 10, 2026

Key Terms

partnership name dissociated partner liable obligation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 16705.

§ 16705 Partner Name Liability Limits

Corporations Code·California

AI SummaryVerified

§ 16705 Partner Name Liability Limits

Key Takeaways

•Using the old partnership name doesn’t automatically make a former partner liable.
•Liability depends on other factors, not just the name being used.
•The rule has been in effect since January 1 1997.

Example

Three friends start "Smith, Jones & Lee Consulting." Lee quits, but Smith and Jones keep calling the firm "Smith, Jones & Lee Consulting." Later the firm owes money to a supplier.

Even though Lee's name is still in the business name, Lee isn’t automatically on the hook for the money the firm owes just because his name is used.

AI-generated — May contain errors. Not legal advice. Always verify source.

Official Source

View on CA.gov

§ 16705 Partner Name Liability Limits

Last verified: January 10, 2026

Key Terms

partnership name dissociated partner liable obligation

References

Official text at leginfo.legislature.ca.gov
California Legislature. Corporations Code. Section 16705.

Key Takeaways

Example

Key Terms

Related Statutes

References

Key Takeaways

Example

Key Terms

Related Statutes

References