Discontinuing a business partnership is usually a difficult position to put in, but sometimes the move is necessary for the betterment of the business. The proper process of making this happen can be complicated, so it is vital to know all the steps to complete. For example, suppose you have reached the point of dissolving a business partnership in Arizona. In that case, it is best to follow these steps and the guidance of a business law attorney for a smoother, less stressful experience.
Discuss Debts and Asset Distribution
You and your partner(s) will need to discuss any financial obligations like outstanding debts, future liabilities, and other skeletons in the closet before discontinuing any partnerships so that everything is out in the open. Please note that paying creditors in Arizona is legally required before you can dissolve a business. After those debts are paid, any remaining assets should be distributed accordingly, based on the varying partnership ownership shares. And all bank accounts tied to the business should be closed and settled.
Review The Partnership Agreement
Secondly, a complete reviewal process of all partnership agreements will need to occur before ending any business partnership. It is not required legally to have a formal contract in Arizona, but most business owners have practice best practices for all parties involved. Well-written agreements should include an outline of dissolution protocol, including how to resolve disputes. This clause requires a majority of votes, written permission from all members, and any other requirements imposed to dissolve the partnership.
File A Dissolution
As usual, It is not legally required to file dissolution paperwork. However, it is always to practice the best way of conducting business with the lowest probability of blowback or litigation. It can also help give closure to any issues involved in the partnership. By filing a Statement of Dissolution with the Arizona Secretary of State, an inexpensive service, this act will cancel any existing Statement of Partnership Authority that might be on file.
Do You Need Help Ending a Business Partnership?
If the idea of ending your business partnership in Arizona seems overwhelming, you’re not alone. The team of experienced business attorneys at the Law Offices of Enara Law PLLC will walk you through the steps you need to take together to ensure you are upholding your legal obligations. Dissolving a partnership can be incredibly complicated if a dispute or multiple issues are involved between partners holding up the process. So let us alleviate the situation, ensure the process is conducted correctly, and protect your interests.