After speaking with a debt collector earlier today I’m concerned about the possibility of liquidation.

Although dissolution does not have to be the end result, most of the time the company is in fact dissolved and ceases to exist after liquidation.

However, in rare cases, if enough funds are raised through the sale of assets to repay all debts then the company might be able to resume operating.

Only partners who receive a liquidating distribution of cash may have an immediate taxable gain or loss to report.

The value of marketable securities, such as stock investments that are traded on a public stock exchange, and decreases to your share of the partnership's debt are both treated as cash distributions.

Before you can figure out the tax effects of the liquidation, you'll need to know your adjusted tax basis in the partnership.

Initially, your basis is equal to the amount of cash plus your basis -- or cost -- in any property contributed to the business.

Your basis increases and decreases over the years for required adjustments to arrive at adjusted basis -- the amount you'll use to calculate gain or loss after the liquidation.

For example, increasing adjustments are made for additional contributions you make and to reflect your share of partnership income, whereas decreasing adjustments are required for partnership losses and profit withdrawals.

As a company director you would be left without a job if the company were dissolved, unless your contract transfers to a new company under TUPE regulations, in which case you’d then be employed by them.