If you no longer want to do business with your LLC, you must formally dissolve it. Failure to do so in a timely way might result in tax fines and penalties, or even legal difficulties.
Simply follow these three procedures to dissolve an LLC in Alabama:
Respect the Operating Agreement.
Close Your Company’s Tax Accounts
Articles of Dissolution should be filed.
Step 1: Comply with the terms of your Alabama LLC Operating Agreement.
For most LLCs, the processes for dissolution will be detailed in the operating agreement. Some frequent disintegration stages include:
Holding an election among LLC members to dissolve the LLC
Recording the dissolution vote in the LLC’s meeting minutes
Choosing the official date of dissolution
Distribution of LLC assets
Notifying creditors and resolving any business obligations
If your LLC’s operating agreement does not include any dissolution processes, you should contact the state for further information.
Step 2: Close Your Commercial Tax Accounts
Every current Alabama LLC has several tax accounts that are handled by different entities within the Alabama State government. You must first pay off any taxes and/or penalties due to these accounts before you may dissolve your LLC.
Here are some of the most typical taxes that your LLC may have to pay:
If you have or have previously had workers in Alabama:
Unemployment Insurance Contribution
Employee Withholding Tax
If your LLC offers or has previously sold taxable goods or services in Alabama, you must:
Step 3: File Articles of Dissolution for Sales and Use Tax
Articles of Dissolution are the documents you must submit in order to voluntarily dissolve your LLC. Your LLC will cease to exist after this form has been submitted and processed.
In Alabama, company owners must send their Articles of Dissolution.