Businesses can dissolve for a variety of reasons but the most common are that the owners do not get along or the business has failed. If the affected business entity is a corporation, Minn. Stat. § 302A.701 and its related sections control the dissolution. The main distinction between the various methods of how to dissolve a corporation revolve around whether shares were issued.
If the affected business entity is a limited liability company (i.e., LLC), Minn. Stat. § 322B.80 and its related sections control the dissolution. The main distinction between the various methods of how to dissolve an LLC revolve around whether member’s have contributed money or other consideration to the LLC.
It is important that in winding up a business, among other things, the principals should contact, among other entities, the Minnesota Department of Revenue to ensure taxes have been paid and will not be assessed automatically by the Commissioner going forward.
Disputes between shareholders and partners are often best resolved through non-binding mediation. Mediation is a non-binding method of presenting arguments to a mediator who will try to get the parties to resolve their dispute.
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