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
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
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
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.