How to Dissolve an LLC in Alaska | LLC Closing Guide

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.

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.

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.

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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.

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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,

1. When the company cannot cope with the losses that they are incurring, they dissolve the company. 
2. There are chances that the owners will have some disagreements regarding the work. So those regular disagreements can lead to dissolution. 
3. Companies have a goal at the time of creation. So if that goal is completed, it can lead to closing too. 
4. If the company doesn’t have many funds and is in debt, it will need dissolution. 
5. 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. 
6. 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. 

1. 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.
2. 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.
3. 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

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.

An LLC, or limited liability company, is a business entity that provides limited liability protection to its owners, or members, from the liabilities of the company. While the LLC is a popular business entity for small businesses, there may come a time when the owners need to dissolve the LLC. Dissolving an LLC in Alaska can be costly, depending on the circumstances, but understanding the process and associated costs can help business owners make an informed decision.

In Alaska, LLCs are governed by the Alaska Limited Liability Company Act. To dissolve an LLC in the state, the business must follow the steps outlined in the Act. Depending on the type of LLC, there may also be additional steps that must be taken to comply with state law.

The first step to dissolving an LLC in Alaska is to file a Certificate of Dissolution with the Alaska Department of Commerce, Community, and Economic Development. The LLC must also notify the Alaska Department of Revenue and the Alaska Department of Labor and Workforce Development of its dissolution. The filing fee for a Certificate of Dissolution is $100.

Once the Certificate of Dissolution is filed, the LLC must also notify its creditors and any other parties that may have a claim against the business. The LLC must also distribute any remaining assets to its members and pay off any outstanding debts and liabilities. The LLC must also complete any remaining tax obligations and file the necessary paperwork with the Alaska Department of Revenue.

The cost to dissolve an LLC in Alaska can vary depending on the size and complexity of the business. If the LLC is a single-member LLC and all debts are paid off, the process may be relatively simple and inexpensive. However, if the LLC has multiple members and/or outstanding debts, the process may be much more complex and costly.

In addition to the filing fee, the LLC may also incur additional costs for legal and accounting services, as well as for notifying creditors and other parties. The LLC may also need to pay for advertising costs to publicly notify creditors and other parties of the LLC’s dissolution. Additionally, the LLC may need to pay for professional services to liquidate any remaining assets and to assist with any tax obligations.

Dissolving an LLC in Alaska can be a complicated and costly process. To ensure they are in compliance with state law and to minimize the costs associated with dissolution, LLC owners should consult with an experienced attorney or accountant before taking any steps to dissolve the business.

F.A.Qs

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.