How to Dissolve an LLC in Alabama (for Free)

In this article, we'll show you step-by-step how to dissolve an LLC in Alabama by giving you links to all of the forms, with advice on how to save money by doing it yourself!

It's a lot easier to file for an LLC dissolution in Alabama than you might think, and if you have the time to spend learning how to do it, you can avoid using a third-party service.

By free, we mean filing the application forms yourself without an LLC dissolution company. State filing fees may still apply.

Our product recommendations are made independently, but we may earn affiliate commissions if you use a link on this page.

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It's hard to pick just one service that will be suitable for every business dissolution need.

However, in our experience, Bizee, formerly IncFile, offer the best and most reliable service for the majority of LLC companies that need to be closed.

IncFile has a fantastic track record will guide you through the entire process.

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How to Close an LLC in Alabama

As technology improves and more systems become digital, the process of closing or dissolving your LLC in Alabama has become easier than ever.

However - we are still talking about the government here, so it's not always as simple as it could be! There are a number of steps you need to take to make sure you close your LLC properly, and we'll walk you through them below.

Make you that you take the time to really read this article a couple of times to fully understand everything you need to do. Any mistakes can delay your filing and your company will still be active until you complete the process.

Dissolution Filing Fees

In order to close your Alabama LLC, you will need to pay a filing fee of $100 to the Alabama Secretary of State. This is a one-time fee paid directly to the government, and it's required to close your LLC.

You can also pay an additional $100 to expedite your filing. This will reduce the time it takes the Alabama Secretary of State to process your dissolution documents to 24 hours.

File By Mail

You can file the dissolution documents for your Alabama LLC by mail. This is the slowest option, but is the traditional method of filing.

To file by mail, it will take a total of 15 days to process your dissolution documents once they have been received by the Secretary of State.

You'll need to download and print the form "Domestic Limited Liability Company Articles of Dissolution Form" from the following link:

https://www.sos.alabama.gov/sites/default/files/2022-09/DomesticLLCDissolution.pdf

Once the form is completed, you can mail it to the following address:

Secretary of State Business Services P.O. Box 5616 Montgomery Alabama 36103

File Online

Filing to close your Alabama LLC online is the fastest and most convenient way to dissolve your company. This method will be approved in 15 days.

To begin the online filing process, you can visit the following link:

https://www.alabamainteractive.org/sos/dissolution/welcome_input.action

File Online

You can file your dissolution documents with the Alabama Secretary of State. This is a great way to speed up the process and avoid any long waiting times.

Alternatively, you can save hours of your time by using a dissolution service like IncFile.

Use IncFile File online

Additional Filing Requirements

To dissolve your limited liability company in Alabama, you must provide the completed original and two copies of the Domestic LLC Articles of Dissolution form to the Judge of Probate in the county where the original Certificate of Formation was recorded, by mail or in person. The filer’s original signature is required.

Annual Report Deadline

As part of the dissolution process, you will need to file your final annual report with the Alabama Secretary of State.

The deadline for the Alabama annual report is May 8.

Alabama Law Reference

To make sure you file the correct dissolution documents, you can refer to the official Alabama statutes at the following link:

https://law.justia.com/codes/alabama/2014/title-10a/chapter-5a/section-10a-5a-7.02

Tax Clearance

A tax clearance certificate is a document issued by the Alabama Department of Revenue that confirms you have paid all of your outstanding taxes.

You do not need to obtain a tax clearance certificate from the Alabama Department of Revenue to close your LLC.

How Long Until the LLC Name is Available Again?

Once the Alabama Secretary of State has approved your dissolution documents, your LLC name will be eventually be made available for someone else to use.

This varies by state, but in Alabama your LLC name will be made available in 120 days.

Public Notice Requirement

A public notice is a document that is published in a newspaper to inform the public that your LLC is being dissolved.

In Alabama, you do not need to publish a public notice in a newspaper to inform the public that your LLC is being dissolved.

Member Vote Requirement

A member vote is a document that is signed by the members of your LLC to confirm that they have voted to dissolve the company.

The requirement for Alabama is that you need a majority vote to dissolve your LLC.

Outstanding Debt Obligations

Before you wind up your Alabama LLC, you need to make sure that you have paid off all of your outstanding debts and obligations.

In Alabama, limited liability companies should distribute the remaining assets only after settling business debts.

Process for Handling Assets

There is also a process for handling the assets of your Alabama LLC. This includes distributing the assets to the members, selling the assets, or donating the assets to a charity.

Any remaining assets should be distributed to the company's members in proportion to their ownership interests.

Potential Legal Consequences

If you do not dissolve your Alabama LLC properly, you could face some serious legal consequences. This includes being held personally liable for any outstanding debts or obligations of the company.

Failure to close the LLC and file annual reports will mean the annual business privilege tax will still be assessed and failure to pay may be met with collections activity.

Contact the Alabama Secretary of State

If you need to clarify any of the information on this page, you can contact the Alabama Secretary of State at:

Mailing Address

Business Entities Division, P.O. Box 5616, Montgomery, AL 36103-5616

Physical Address

RSA Plaza – Suite 580, 770 Washington Ave., Montgomery, AL 36104

Phone Number

(334) 242-5324

Email Address

[email protected]

Website

https://www.sos.alabama.gov/

Next Steps

When you have completed the dissolution process for your Alabama LLC, you should also notify the IRS that you are no longer in business. You can find information on how to do that at the following link:

https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business

You should also make sure to cancel any business licenses or permits that your LLC may have.

Conclusion

We hope this guide has helped you understand the process for dissolving your Alabama LLC. If you have any questions, please contact a local attorney for assistance. While not required, it can be helpful to have a lawyer assist you with the dissolution process.

Recommended Dissolution Service

Save hours of your valuable time by using a dissolution service to close your LLC.

It's hard to pick just one service that will be suitable for every business dissolution need.

However, in our experience, Bizee, formerly IncFile, offer the best and most reliable service for the majority of LLC companies that need to be closed.

IncFile has a fantastic track record will guide you through the entire process.

Try Bizee Now →