Legal Question in Business Law in Arizona

small business disolution

I have a new small business that opened up in the beginning of the year. 50/50 ownership. I want OUT. My partners name is not on ANYTHING (bank account, large equipement that was owned by myself PRIOR to the companys beginning) His name IS on the Articles of organization as a member but he did not fill out the paperwork It was filled out by me with my signature only. The EIN # is also in my name. The liability insurance is also under my name only. Can I close everything that is in my name and close the business?The only money in the account is the money that I put in it personally to open it.


Asked on 4/12/09, 4:00 pm

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: small business disolution

It is not clear what your partner has done in the operation of the business. It sounds like you provided for him to have a half interest, but you did not completely form the LLC and have not made an operating agreement. You have not mentioned if there has been any sales or profits received. In such a short period of time, you should be able to make an agreement with the partner to transfer his interest in the business to you, and you both sign a mutual release, so that there is no claim by him later. Whether or not you have the right to close the business, requires more facts.

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Answered on 4/13/09, 12:26 am


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