How to Legally Dissolve a Business in Arizona
Posted By Salvador Phillips, PLLC || Nov 22, 2017
When it comes time to close a corporation in Arizona, there are multiple tasks that will need to be taken care of before a business can be dissolved. In this blog, we explain how to legally dissolve a business in the state of Arizona.
Dissolving a Business
Arizona’s Business Corporation Act allows for voluntary dissolution through a shareholder vote at a shareholder meeting. The board of directors has to submit a dissolution proposal to the shareholders prior to the vote. A notice of the proposed meeting to consider dissolution is required to be given to each shareholder ten days in advance, regardless of whether they are entitled to a vote. In general, the majority of all entitled votes is needed to approve the dissolution. It is important that all shareholder’s votes are properly recorded.
Shareholders who are entitled to a vote can provide their written consent for dissolution if they wish to avoid a formal meeting or vote. They simply must sign a document that states the corporation is dissolved. However, non-voting shareholders still require at least ten days advance notice of the impending dissolution. Written consent dissolutions can be useful for smaller businesses with voting shareholders who unanimously agree on the dissolution proposal.
Arizona also requires a business to obtain tax clearance before the voluntary dissolution can be completed. Businesses must request a certificate of compliance from the Department of Revenue (DOR) and compete a tax clearance application. Once the process has been completed, the DOR will send the certificate of compliance that is needed to file the articles of dissolution.
Do you need help with your business dissolution? We can assist you. At Salvador Phillips, PLLC, we offer reliable legal guidance for our clients 24 hours a day, 7 days a week. Our lawyers have years of experience handling business matters for start-ups, international businesses, as well as the construction, manufacturing, and technology industry. Let us put our skills to work for you today
Call (602) 842-6222 to speak with our team of Phoenix business lawyers.