Do you want to know how to dissolve an LLC in Alabama? But to dissolve a Limited Liability Company in Alabama, what are the significant steps that need to be taken? When it comes time to dissolve an LLC in Alabama, there are a few things you need to know. In this guide, we’ll walk you through the process of dissolving an LLC in Alabama, step-by-step.
How To Dissolve an LLC in Alabama?
The Limited Liability Company dissolution in Alabama requires three general steps. Among the most significant are LLC must distribute all remaining assets to its members following the Alabama LLC Operating Agreement. Next, the LLC must notify the Alabama Secretary of State of its intention to dissolve and submit the Articles of Dissolution form. Finally, the LLC must notify the IRS and close all the business tax accounts.
Step #1: The LLC Operating Agreement and Asset Distributions
The Operating Agreement to dissolve an LLC in Alabama is a legal document that outlines the procedures and conditions for dissolving the LLC. It includes provisions for distributing LLC assets, liabilities, and ownership claims among the members. And the LLC has to distribute its assets to the associates according to their share in the LLC. The Alabama LLC Operating Agreement also sets forth the process for winding up the affairs of the LLC and terminating its existence.
The LLC in Alabama must follow the guidelines abstracted in its Operating Agreement. And the LLC members should also follow the operating Agreement’s conditions about dissolving the domestic Alabama LLC. However, if the Limited Liability Company does not have an operating agreement, it must follow the state’s default dissolution procedures. And the assets are distributed under the Alabama Limited Liability Companies Act. When the LLC’s assets have been divided, it must next file an Article of Dissolution with the Alabama Secretary of State.
Step #2: Submit the Articles of Dissolution Form and Notify State Secretary
A Certificate of Dissolution must be submitted by the Alabama Limited Liability Company to the Alabama Secretary of State. This Certificate of Dissolution can be obtained from the Alabama Secretary of State online
or in person. Articles of dissolution must then be submitted to the Secretary of State.
The LLC’s registered agent’s signature and the LLC’s name, incorporation date, and dissolution date must all be included in this Article of Dissolution. Also, the last date creditors may file claims against the LLC. This article should be sent at least 30 days before the effective date of the Alabama LLC dissolution.
It is filed with the state, and once approved, the LLC is no longer legally recognized as a business entity. However, the LLC’s members or managers can initiate this article when the LLC is no longer operational or when it is being dissolved voluntarily. Make sure to check the Alabama law of LLC dissolution to avoid legal issues.
You can file the Article of Dissolution through the mail, online, or in person with the Alabama SOS. The Filing Fee is $100.
File Via Online
Before you may submit your paperwork online in Alabama, you must sign up on the Secretary of State website. To sign up and create an account, you’ll need your LLC’s filing number. The filing number can be acquired on your LLC’s annual report. Once you have your filing number, you can create your online account.
File Via Mail
To file by mail, you’ll need to print out a Certificate of Dissolution and send it to the Alabama Secretary of State. A downloadable copy of the Certificate of Dissolution can be found on the website of the Alabama Secretary of State. Or you can mail it to Business Services at P.O. Box # 5616, Montgomery, AL 36103.
To file in person, you’ll need to print out a Certificate of Dissolution and bring it to the Alabama Secretary of State’s office in Montgomery, Alabama.
Step #3: Close Tax Business Accounts and Notify IRS
All tax accounts associated with the LLC must be closed to dissolve an LLC in Alabama. It includes any state and local tax accounts, as well as any federal tax accounts. The easiest way to close all tax accounts is to contact the Alabama Department of Revenue and request them to close all business tax accounts. The Department of Revenue will then notify the IRS and all other relevant tax authorities informing them that the LLC is no longer in business and all tax accounts associated with the Limited Liability Company have been closed.
The Tax Clearance Certificate
The Limited Liability Company owner in Alabama is not required to get a tax clearance certificate. Meanwhile, the LLC must proceed with the IRS form’s final tax return option if it has filed federal taxes. If the Limited Liability Company is classified as a partnership, they should check the 1065 IRS form
Or if LLC is registered as corporate, they must go through the 1120 IRS form
. Once all business tax accounts are closed, the Limited Liability Company will officially be dissolved and no longer exist.
Costs Associated with Alabama LLC Dissolution
There are many sorts of costs involved in dissolving an LLC in Alabama. It includes the cost of hiring an attorney to help with the dissolution process—the filing fees of the necessary paperwork with the secretary of state. And the local newspaper publishing fees about notice of dissolution.
If your LLC is behind on its tax liability, you’ll need to pay those outstanding taxes before you can dissolve your LLC in Alabama. It includes state and federal taxes. However, if you haven’t filed your annual reports, you’ll have to pay yearly delinquent report fees before you can dissolve your LLC in Alabama.
Reasons to Dissolve an LLC in Alabama
There are many reasons to dissolve the Limited Liability Company in Alabama; some of them include the following:
1. The LLC has reached the end of its business cycle and wants to end LLC’s existence as a legal entity.
2. The Limited Liability Company is no longer profitable and winds up its affairs. Also, to remove the LLC from the state’s business registry.
3. The LLC’s members no longer want to continue the business and want to distribute the LLC assets among the members.
4. The Limited Liability Company has been involved in legal or financial trouble. Or to avoid further liability for the LLC’s business debts and obligations.
5. The LLC’s members have personal disagreements and like to eradicate the annual reports and pay off the yearly fees.
Here’s How Goodbye Startup Can Help You to Dissolve Your LLC in Alabama and Avoid Legal Complications
Dissolving an LLC in Alabama may seem simple at first glance, but complications might arise.
It is strongly recommended that you consult an expert before dissolving your Albama LLC. Get in touch with Goodbye Startup
if you are looking for someone who can help you dissolve your LLC in Alabama.
The professionals at Goodbye Startup
help Albama company owners wind down operations and dissolve their businesses while meeting all the laws.
They will assist you in completing each process required to dissolve your LLC and stay clear of any legal issues. Goodbye Startup provides an easy, all-in-one solution for dissolving your limited liability company.
To Schedule Free Consultation Call With Experts at Goodbye Startup, Click Here