Phoenix Attorneys for Business Dissolutions and Partnership Disputes
Protecting your rights in conflicts with co-owners
Anyone engaged in business long enough will eventually become involved in a dispute. These disputes are not limited to customers, trade partners or employees. Conflicts among stakeholders in a business are quite common and often lead to a parting of the ways. While going through a dissolution, or what is informally known as a “business divorce,” is undeniably stressful, the attorneys of Law Offices of Donald W. Hudspeth P.C., can help you through this difficult time.
Experience resolving a wide variety of partnership dispute scenarios
There are different rules for different entities when it comes to ownership disputes and dissolutions, and if your legal representation is not adept at protecting your interests, you could wind up on the losing end of the transaction. Our firm has experience with all types of corporate entities and partnership structures. We are here to protect your interests in:
You’ve put a great deal into your business, and you’re entitled to get your fair share from it. Be sure to retain the services of knowledgeable and experienced business attorneys who can capably manage complex dissolutions.
Using all available tools to turn legal problems into business solutions
In everything we do, our firm draws on the practical business experience and specific legal knowledge of our talented attorneys. However, we are also up-to-speed with current technology and can use numerous tools to your advantage. Our attorneys have considerable experience with electronic evidence such as computer/internet records and data recovery — two very influential elements in determining who is right in a modern-day business dispute.
Contact our Phoenix law firm for detailed management of your business dissolution
If you’re going through a conflict with one or more of your business partners and fear it may lead to a dissolution of your business, get capable legal help today. Law Offices of Donald W. Hudspeth P.C., can protect your rights and fight to achieve your goals for your business future. To schedule a consultation, call our Phoenix firm today at 602-265-7997 or contact us online.
Dissolving a Business in Arizona
At Law Offices of Donald W. Hudspeth P.C., we put our 30-plus years of Arizona business law experience to work for you to make dissolving your business as quick, painless, and profitable as possible.
Dissolving a partnership
Before you take steps to dissolve your partnership—general, limited, or limited liability—get state and federal income tax advice, and make sure you fully understand the financial ramifications of shutting down your business. If you are a partner in a general partnership, or are the general partner in a limited partnership, you may be responsible for some of your partnership’s debts even after dissolution. On the other hand, if your business still has assets after you have paid off all creditors, the government will view any dividends of the dissolution as income and tax them as such.
Next, get an agreement to dissolve or terminate the partnership in writing, if you are a partner in a multi-member partnership where not all the partners are close family. The written dissolution agreement should include details about payment of final expenses, the timing of the assignment of assets, who gets what, when the partnership will cease activity, and when the partnership will notify the Arizona Corporation Commission.
Finally, pay off all creditors with remaining partnership assets before you file Articles of Dissolution with the Arizona Corporation Commission. Arizona law does not permit partnership members to make further payments to themselves and leave creditors out in the cold when dissolving a partnership.
Dissolving a corporation
If your corporation has not issued shares or commenced business, the majority of initial directors or incorporators may simply dissolve the corporation by filing Articles of Dissolution with the Arizona Corporation Commission. If the corporation has already commenced business, Arizona corporate dissolution becomes a bit more complex.
Once shares are issued, the board of directors may propose dissolution to the shareholders. The board must notify each shareholder—regardless of voting rights—of the proposal and the shareholders meeting which will vote on the issue. Unless the articles of incorporation or the board of directors require otherwise, a majority vote for dissolution is sufficient for the board to proceed to dissolve the corporation.
Article of Dissolution must be published, and all fines and fees paid, before the Arizona Corporation Commission will consider the corporation dissolved. Dissolved corporations do not cease to exist, but continue to function only to the extent necessary to wind down their business. This includes collecting outstanding debts, paying off creditors, disposing of properties that will not or cannot be distributed to the shareholders, and distributing remaining assets to the shareholders according to their interests.
Dissolution can be as easy as signing forms (if all the owners do it) or as difficult as a long divorce. If “partnership” dispute arises, early legal counsel is important. Unilateral dissolution or removal of one member by another is not legal effective and may give rise to legal claims.
Protect yourself from personal liability and work with expert Arizona business lawyers
Located in midtown Phoenix, Law Offices of Donald W. Hudspeth P.C. serve the business community throughout Arizona. Many of our Phoenix business law attorneys have personal experience as small business owners or high-level private sector employees, and we draw on our personal experience every day to make sure we fully understand the goals and interests of our clients.
If you are thinking about dissolving an Arizona corporation or partnership, call us at 602-265-7997, toll free at 866-696-2033 or contact us online today to arrange an initial consultation about how to proceed.
At Law Offices of Donald W. Hudspeth P.C., we do more than connect the dots—we create the dots.