To dissolve a limited liability company one has to take up a set of required steps. In Alaska, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Alaska, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.
If you have an Alaska LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Alaska LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started. Here are the steps to address for dissolving Alaska LLC.
On this page, you’ll learn about the following:
How to Dissolve an LLC in Alaska
Dissolution of Alaska LLC requires three broad procedural steps. Having an Alaska LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Alaska Secretary of State.
Step 1: Follow Your Alaska LLC Operating Agreement
When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-
First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.
- All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
- After that, a formal date for dissolving the LLC will be decided.
- The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
- Finally, the creditors of the business are notified, and the debts of the business are settled.
This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC.
Get a Professional Agent Service
When it comes to a limited liability company dissolution, it is important to get professional help. The Alaska registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services we strongly recommend for you.
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Step 2: Close Tax Accounts
Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.
You must contact all government entities and clear the amount of outstanding taxes due until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further process of shutting down your LLC.
Some of the common tax liabilities that limited liability companies have are:
- Unemployment insurance tax
- Employee withholding tax if your LLC has employees.
- If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.
Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required.
That is why the LLC owner should go through the sales tax guide and hire an accounting service. If you want to do the accounting yourself or make accounting easy, try FreshBooks.
Tax clearance
While dissolving the LLC in Alaska, the owner does not require to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.
The IRS form for the LLC that are classified as partnerships is form 1065, and those LLC’s who have registered themselves as corporate should check IRS form 1120.
Step 3: File Articles of Dissolution
There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like an Alaska Articles of Organization, one has to file an Article of Dissolution. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.
- First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, i.e. file by mail, drop in-person, or Fax. To get the application form you need to visit the Secretary of State Website of Alaska state.
- In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
- If you want to dissolve Alaska Foreign LLC then look for the Foreign LLC Dissolution process.
- There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
- You must fill in all the important and legal information in the form, so you should be extra careful.
- After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
- After filling in every detail, one should submit the form through an official mail address and make a payment.
- For credit card payments, one has to submit an Authorization Form along with the dissolution form.
In-person drop or Mail to,
State of Alaska
Division of Corporations, Business and Professional Licensing
Corporations Section
PO Box 110806
Juneau, AK 99811-0806
Fax: (907) 465-2974
Filing Fee: $25
The LLC you owned is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call that he accepts your expedited dissolutions or not.
Points to Be Noted When Dissolving Alaska LLC
Apart from these three steps, no major dissolution rules are there in Alaska. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.
Winding Up
There are some purposes of LLC that require some attention even after dissolution, known as winding up. The task of winding up includes.
- For a certain period, the property of a business requires preservation.
- If there is any civil case against the LLC, then the owner needs to finish them.
- Settle all the existing disputes of LLC.
- Transfer all the property of LLC to the names of partners.
- Release all the liabilities that the LLC owes to others.
- Rightful distribution of all the assets among members, according to their percentage of partnerships.
Cost of Dissolving LLC
LLC cost in Alaska includes the formation as well as dissolution fees. To dissolve an LLC in Alaska, LLCs have to file an Article of Dissolution. The filing fee is $25. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,
- You can select a payment pick-up option.
- There is an option of direct account transfer through your prepaid accounts.
- LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction state will make.
After Dissolving Your LLC
After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Alaska LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Alaska. A registered agent can help you do the needful.
Reasons Behind Dissolving Alaska LLC!
There are so many businesses that come on the verge of closing. There can be so many reasons why a person would want to dissolve an LLC in Alaska. But the reasons can be of two types, voluntary and involuntary dissolution. Let’s check and see what they are,
- When the company cannot cope with the losses that they are incurring, they dissolve the company.
- There are chances that the owners will have some disagreements regarding the work. So those regular disagreements can lead to dissolution.
- Companies have a goal at the time of creation. So if that goal is completed, it can lead to closing too.
- If the company doesn’t have many funds and is in debt, it will need dissolution.
- Many companies already have an assigned timeline of working. So at this time, they will have to dissolve no matter how well they are doing.
- If a member of the company’s partner is leaving due to an issue or death, the company will be bound for dissolution.
Top businesses to Look For in Alaska!
Businesses are the main thing that we need to make better outputs for the economy of the state. All businesses go according to the state and what is the demand of that specific place. So if someone looks for an opportunity to start an LLC in Alaska, they should try in the following sectors.
- Oil and gas industry: When we talk about the state budget, the oil and gas industry weighs the most. We get nearly 85% that is represented in the whole annual budget of the state. Also, it is not just for Alaska, and the industry is also catering to other sectors’ needs.
- Fishing: In Alaska, people are fond of seafood, and it is the one that is also cheaper than the other food resources. It is the reason there was a rise in the economy because of this sector too. According to facts, it also gave $51 billion in the representation of the annual GDP of Alaska.
- Agriculture: The cash receipts of the agricultural sector turned out to be $38 million in a year and represented 2.4% of the annual GDP. Everyone needs to tend to their eating needs, so this is a vital sector for every type of economy.
Alaska LLC Dissolution Review
Time needed: 5 minutes
Here’s a recap of the steps you must follow when dissolving your Alaska LLC. Click on the steps in this list if you want to read the full detail.
- Follow Your Alaska LLC Operating Agreement
Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
- Close All Tax Accounts
Make sure you close all your tax accounts to avoid incurring further costs.
- File Articles of Dissolution
File the article of dissolution to make it known to the state where your LLC operates that you are indeed no longer in business.
What is the Cost to Dissolve an LLC in Alaska
To dissolve an LLC in Alaska you need to file the Articles of Dissolution with the Alaska Secretary of State via mail, fax or in person and pay a filing fee of $25.
One significant factor that affects the cost of dissolving an LLC in Alaska is the administrative procedures set forth by the state government. Filing the necessary paperwork with the appropriate authority is a prerequisite in the dissolution process, ensuring compliance with state regulations. Additionally, hiring legal counsel or using online resources to handle the paperwork can further impact the overall cost. Proper representation during dissolution can help streamline the process and navigate any legal complexities, saving business owners time, effort, and potential legal fees.
Another potential cost to dissolve an LLC in Alaska is associated with fulfilling any outstanding financial obligations. Before dissolution, it’s crucial to settle any pending debts owed by the company, including loans, leases, or outstanding taxes. Settling any remaining financial responsibilities prior to formally dissolving the LLC is vital, as it may affect the company’s credit history and the lives of individual stakeholders.
Furthermore, if an LLC has employees, one must consider the costs associated with terminating their employment. These include payment of any outstanding salaries or accrued vacation time, severance if applicable, and adhering to relevant labor laws and regulations. Properly managing the termination process can minimize the financial impact and legal risks associated with personnel changes.
Additionally, the physical assets and property owned by the LLC should not be forgotten when assessing the cost of dissolution. Liquidation of inventory, property, or equipment may be required, which can affect the overall expense. Selling such assets may help recover some of the costs incurred during the dissolution process.
In certain cases, business owners may choose to hire professionals to assist them throughout the dissolution process. These experts can help with valuable services such as tax filing, asset liquidation, and finalizing any remaining contractual obligations. However, it is essential to consider the fees associated with employing such professionals, as they would add to the total cost of dissolving an LLC in Alaska.
While it is difficult to provide an exact figure without data or statistics, it is crucial to carefully evaluate the above factors to estimate the cost of dissolving an LLC. Each situation is unique, so the expenses incurred when dissolving a company can vary significantly from one business to another.
Overall, dissolving an LLC in Alaska involves several cost considerations. From administrative fees and legal representation to settling outstanding obligations and factoring in any employees or inventory involved, these expenses can accumulate. Business owners must approach this process with care, seeking professional guidance if required, to ensure a smooth and cost-effective transition out of their LLC.
Remember, understanding the cost implications and adhering to the legal requirements when dissolving an LLC can help entrepreneurs effectively close one chapter while setting themselves up for new opportunities in the future.
F.A.Qs
Yes, the Articles of Dissolution filing fee of $25, which Alaska SOS charges to dissolve the legally registered LLC and proceed with the task of removal of their name from every tax list and benefits. Articles of Dissolution must be submitted to the Alaska SOS.
No, there is no requirement of revenue department clearance till the time the S OS of Alaska accepts the dissolution form.
The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.
If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.
Yes, if you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.
In Conclusion
Limited liability companies reduce owners’ personal liability. Having an LLC is quite cost-effective. However, if it is required to close down the business, then the dissolution process should be done legally. Get a professional service to get everything done. We hope this article helps you to close your LLC in Alaska. If you have any query do let us know in the comment box.
