A variety of different tasks are involved in the dissolution of an Arizona limit to liability company. Your company is officially registered with the state of Arizona and this means that taking the necessary step to dissolve your LLC means putting it beyond the reach of claimants and creditors.
This initiates a formal process referred to as dissolution. While LLCs could be voluntarily dissolved through court decrees or for administrative reasons such as failing to notify the state about a change in the business location or not paying appropriate penalties and fees.
Voluntary dissolution by LLC members is the most common scenario. You should look to the formational documents, including the operational agreement and the articles of organization to determine whether or not there are certain steps you must follow in order to dissolve the company. In general, the rules will usually require a vote of LLC members to dissolve and a requirement that some portion of the members vote in favor of the resolution. Wind up any necessary business, including discharging or making provisions for getting rid of all of the LLC’s liabilities, collecting assets within the LLC and disposing of that property to members and ensuring that all distributions are made in a particular order, can help you remain compliant with the necessary rules in Arizona.
Having someone else look over the steps you have taken in closing down an LLC may alert you to things you missed and ensure that you get these details corrected in time so you can continue with the dissolution. Don’t make the mistake of missing out on what you need to do.
It is crucial that you pay all outstanding taxes before dissolving your Arizona LLC. Unless your operating agreement provides instructions for another way, you should also pay members for interim distributions and any distributions that are due to members that have withdrawn from the company. All remaining assets should be distributed to members in proportion with their contributions to the company and in equal shares among the members. Consulting with a knowledgeable Arizona business attorney can help you ensure that you complete this process properly.