Top Law Firms | AZ Business
Dissolving a Closely Held Arizona Business
Dissolving a closely held business is not as simple as closing shop and moving on with your life. In most cases, you will need the business advice of top law firms to navigate and follow the procedures needed to dissolve a business. The only exception to this rule is if you are the owner of a sole proprietorship. For the other Arizona business structures, if the required steps toward dissolving a business are not followed, the business and business owner may face legal and financial consequences.
Keep the following information in mind when determining whether it is time to dissolve your Arizona business.
Taking the Steps to Properly Dissolve an Arizona Business
When an Arizona business faces the reality that it is time to close its doors, a specific process must be followed depending on how the business entity is/was structured. Partnerships, corporations and LLCs all have different processes and rules to follow in order to legally dissolve the business. Often, the documents used to form the business will contain information on how to dissolve the corporation, partnership or LLC in question.
If the business formation documents do not contain the provisions for dissolve the business, then any and all business owners must agree on how to dissolve. These decisions must be documented and should not be made without the advice of top law firms that provide exemplary business law counsel.
Whether you follow dissolving provisions in the original business formation documents or create your own dissolution plan, the documents must be filed with Arizona’s Secretary of State. By filing with the Secretary of State, the IRS and state tax authorities will recognize the company is no longer in operation. Businesses that fail to file will still be liable for these tax obligations and similar responsibilities despite the fact the business is no longer operating.
Additional steps an Arizona business should take with the help of top law firms include:
- Canceling All Business Licenses
- Giving Employees Final Paychecks
- Compensating Unused Leave Time
- Accounts Must Be Closed
- Final Tax Bills Must Be Paid
- And More
For all of these steps, it is important that the Arizona business documents these moves to have an accounting of these records for future reference. Fowler St. Clair’s Arizona business law attorneys help clients take the proper steps to legally and responsibly dissolve an Arizona business. Contact our team for a legal consultation to discuss your Arizona business law needs.