Dissolution of an Alabama LLC
Dissolving Your LLC
To dissolve an Alabama LLC, you must file Articles of Dissolution with the Secretary of State. The filing fee is $100. Prior to dissolution, you should:
- Pay off any taxes or fines owed to various Alabama state departments.
- If applicable, settle unemployment insurance tax, employee withholding tax, sales, and use tax.
Alabama does not require tax clearance to dissolve an LLC, but it’s important to resolve all outstanding tax and financial obligations to avoid penalties and interest.
Dissolving a Foreign LLC in Alabama
For foreign LLCs, you must file a Certificate of Authority Cancellation. This action will prevent the LLC from conducting further business in Alabama.
Timeline and Processing
The processing time for the Secretary of State to dissolve an Alabama LLC generally takes 5-7 business days. It’s advisable to dissolve your LLC as soon as you decide to stop operating to ensure all affairs are settled properly.
Steps for Proper Dissolution
- Follow the official procedure.
- Notify all members in compliance with the LLC operating agreement or state statutes.
- Inform third parties and close tax accounts.
- File Articles of Dissolution with the Secretary of State.
Reasons for dissolution can be voluntary or due to involuntary dissolution by the State for non-compliance.
Costs and Considerations
The expense for filing the necessary documentation to dissolve an LLC in Alabama is $100. You may need to confirm if there are additional charges with the Secretary of State. Consider seeking professional assistance if you are not familiar with the legalities, as the process can be complex and there are penalties for non-compliance.