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Dissolutions & Partnership Disputes

Phoenix Attorneys for Business Dissolutions and Partnership Disputes Protect Your Rights in Conflicts with Fellow Owners

Helping clients cope with the breakup of business partnerships in Arizona

Conflicts among stakeholders in a business are quite common and often lead to a parting of the ways. While ownership conflicts and business dissolutions are undeniably stressful, the Law Offices of Donald W. Hudspeth P.C. can help you through these challenges.

Experience resolving a wide variety of partnership dispute scenarios

Business partnerships break up for a variety of reasons, such as:

  • Weaknesses in the partnership agreement
  • Disputes about how to conduct business
  • Allegations of mismanagement, misappropriation of business property, fraud or breach of fiduciary duty between partners

We will protect your interests during a business breakup and work to ensure you get what you’re entitled to.

Options for resolving disputes in Phoenix, AZ

Business disputes can generate serious problems for the future of the business, such as:

  • Lenders and suppliers unwilling to cooperate
  • Loss of existing staff and difficulty hiring replacements
  • Civil and even criminal liability against the company

We might be able to help you resolve these problems without resorting to dissolution by taking measures tailored to your specific business needs and problems, including:

  • Adjusting management roles within your firm
  • Negotiating and drafting amendments to the partnership or shareholder agreement
  • Helping iron out the differences between you and your partners

When appropriate, we use the latest technology and other resources to your advantage. Our considerable experience with electronic evidence can be critical to proving who should prevail in a business dispute. In everything we do, we draw on our practical experience and legal knowledge.

Dissolving a business in Arizona

Different rules apply to different entities when it comes to dissolutions, and if your legal representation is not adept at protecting your interests, you could be the victim of an unfair resolution. If dissolution proves unavoidable, we put our 30-plus years of Arizona business law experience to work in winding down your business efficiently while safeguarding your interests.

Dissolving a partnership in Phoenix, AZ

Before you take steps to dissolve your partnership, whether general, limited, or limited liability, it’s critical to obtain state and federal income tax advice so 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 business debts even after dissolution. Likewise, the government might treat any dividends of the dissolution as taxable income.

Next, draft a written agreement to dissolve or terminate the partnership. The agreement should include details about payment of final expenses, the timing of the assignment of assets,  when the partnership will cease activity and when it will notify the Arizona Corporation Commission regarding the dissolution.

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 partners to favor themselves over business creditors when dissolving a partnership.

Dissolving a corporation in Arizona

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 to the extent necessary to wind down their business. This includes collecting outstanding debts, paying off creditors, disposing of properties that will not be distributed to the shareholders and distributing remaining assets to the shareholders according to their interests. We will guide you through every step.

Contact an Arizona attorney for representation during business disputes and dissolutions

If you’re going through a conflict with one or more of your fellow business owners 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 work to achieve your objectives. To schedule a consultation, call our Phoenix firm today at 866-696-2033 or contact us online.

Donald W. Hudspeth Attorney Photo
Donald W. Hudspeth
Principal Attorney

Attorney Donald W. Hudspeth has more than twenty years’ experience practicing corporate and business law. Before attending law school, Mr. Hudspeth held a stock brokers license at the age of 21 and owned his own business at the age of 23. He was a business law professor at Arizona State University, West Campus, and has conducted classes and seminars for a number of higher institutions and organizations. Mr. Hudspeth has published two books on law and is the founder of the radio programs Law on the Edge and Law Talk.

Mark S. Hamilton Attorney Photo
Mark S. Hamilton

About Attorney Mark S. Hamilton has experience handling all aspects of civil and commercial litigation in federal, state, and tribal courts at the trial and appellate levels. Practice Areas Business litigation Commercial litigation Education University Of Hawaii Wm. S. Richardson School Of Law, Juris Doctor - 2002 University Of Hawaii, Master Of Arts in Asian…

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    2020 issue of AZ Business Leaders

Our firm now offers a scholarship program for ASU first and second year law students.

The scholarship is awarded to students for academic merit with an interest in business and business law. Candidates may have majored in fields other than business, have taken a break between college and law school, or have had exceptional life experiences.

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  • "I would recommend Mr. Hudspeth unequivocally. Not only is he an outstanding business attorney, he also provided me with access to a divorce attorney. Thanks to his skill, and resources available outside the Phoenix law family, I was successful in challenging a “family law” mediation that was particularly and grossly unfair." - Chandler, Arizona Private Individual

  • "Thank you for the work you have done in creating these documents. It is always a pleasure dealing with this firm!" - J. P.

  • "An excellent response. Masterfully prepared. Thank you." - El Paso, Texas Real Estate Investor

  • "Glad about meeting with Don. Felt so much better, better than in 15 years. Really appreciated the conversation." - RH, Phoenix Manufacturing Company

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