How to Dissolve an LLC in Alaska

Dissolving a business often involves complex procedures. However, for a limited liability company in Alaska, dissolving it takes a handful of paperwork. When an LLC is formed in Alaska, the owner(s) draft the operating agreement. If the owner(s) decide to dissolve the business, the dissolution takes place following the articles mentioned in the operating agreement.

In this article, LLCBuddy editors shared the ins and outs of dissolving an LLC in Alaska. LLCs must file the Articles of Dissolution with the Alaska Secretary of State like the formation certificate was filed at the time of forming an LLC in Alaska. It takes a few days to process and a handful of fees to be paid to the SOS. Many people hire a professional service to do the paperwork to process it hassle-free.

At the time of forming an LLC, an operating agreement draft must be written. Generally, the process of dissolution takes place following the operating agreement (read: Alaska LLC operating agreement). Before the dissolution process, there are a few things to consider in the LLC.

First, make sure all the members of the LLC agree 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.

Dissolution of Alaska LLC requires three broad procedural steps. Having a Alaska LLC Operating Agreement, closing all the tax accounts, and finally submitting the Articles of Dissolution form to the Alaska Secretary of State.

Step 1: Follow the LLC Operating Agreement in Alaska

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 in Alaska.

Get a Professional Agent Service

When it comes to a limited liability company dissolution, it is important to get professional help. 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 in Alaska that we strongly recommend for you.

LLC Service	Our Rating & Pricing	Top Features	Learn More
#1 TOP PICK	4.5/5 $0 + State Fees	100% accuracy guarantee Worry-free service Great customer support	Learn More
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Step 2: Close All Tax Accounts

Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax 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 by the date you have decided to dissolve. All the taxes must be paid in advance so that you don’t face any issues in the process of shutting down your LLC.

Some of the common taxes that limited liability companies have to pay 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 their 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.

Tax clearance

While dissolving the Alaska LLC, the owner is not required 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 LLCs that are classified as partnerships is Form 1065, and those LLCs who have registered themselves as corporate should check IRS Form 1120.

BOI Reporting

If you’re going to dissolve your LLC this year, make sure to update your BOI reporting. From January 1, 2024, the Financial Crimes Enforcement Network (FinCEN) implied a rule to all businesses, including LLCs in Alaska to file the BOI Report. The Beneficial Ownership Information (BOI) in Alaska is a report that states about in and out of the company. This report must be up-to-date and submitted to the FinCEN before you proceed to the dissolution.

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 a Alaska Articles of Organization, one has to file Alaska LLC Articles of Organization. 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, such as filing by mail, in-person drop, or/and online filing.
You can follow the filing instructions on the official portal so that the steps for dissolution will be easier to complete.
For offline filing, LLCs must download the form and submit it to the Alaska Secretary of State physical office along with the state filing fee.
If you want to dissolve Alaska Foreign LLC then look for the Foreign LLC Dissolution process.
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.

Filing	Forms and Details
Online Applications	Not Applicable
Offline Applications	Articles of Dissolution
SOS Contact (if offline application is available)	State of Alaska Corporations Section, P.O. Box 110806, Juneau, AK 99811
Filing Time	10-15 working days
Filing Fee	$25

The LLC you own 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 whether he accepts your expedited dissolutions or not.

Points to Be Noted When Dissolving an LLC in Alaska

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

Some purposes of LLC 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 the 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 costs in Alaska include 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 in the articles of dissolution filing form. Following are the ways to pay for the dissolution,

You can select a payment pick-up option.
There is an option for 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 the state will make.

After Dissolving Your LLC

After you dissolve an LLC in Alaska, you can reinstate or revive the same within a given time. In Alaska, the LLC name will be available up to 6 months. After this, the name will be available to other LLCs. Besides, you might revive or reinstate the LLC in Alaska if that is available. According to the Alaska SOS, you can revive your LLC within 2 years.

Reasons Behind Dissolving an LLC in Alaska

People always think they can leave the company without any notice and there will be no issue. But if you have an LLC that you created with a legal obligation, it needs to be ended that way. Yes, if someone will dissolve an LLC in Alaska, they will have to do it while taking care of the government. For dissolving the company, there is always a reason. The reason can be voluntary or involuntary too. Let’s get to know about the involuntary reasons,

If the company was caught doing illegal business.
If the company’s member died due to some reason or went bankrupt.
The dissolution will be mandatory if the assets of the business are used unwisely.
If the time being of the company was already determined in the will, then the company will go into dissolution at that time.

Top Businesses in Alaska

With the population of 740,339, Alaska is one of the favorable places to start an LLC. According to several reports, starting an LLC for Restaurant can be profitable as various places in the state showed steady growth in this business over the past few years. On the other side, based on the city or region you’re going to start your LLC, you can decide the type of business to start. Following are the top 5 businesses you can start in Alaska.

Restaurant
Music Venue
Travel Agency
Tutoring
Car Repair

Alaska LLC Dissolution Review – A Quick Recap

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 details.

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 Organization: File the article of dissolution to make it known to the state where your LLC operates that you are indeed no longer in business.

FAQs

How do I dissolve an LLC in Alaska?

To dissolve an LLC in Alaska, the members or managers must vote to dissolve the business and then complete and file articles of dissolution with the Alaska Division of Corporations, Business, and Professional Licensing.

Can I expedite the dissolution process in Alaska?

Yes, you can pay an additional fee for expedited processing of your dissolution documents in Alaska.

What is the fee for filing articles of dissolution in Alaska?

The filing fee for articles of dissolution in Alaska is $25.

Do I need to notify creditors when dissolving an LLC in Alaska?

Yes, when dissolving an LLC in Alaska, you must notify all known creditors of the business’s dissolution.

Is there a specific form to use when dissolving an LLC in Alaska?

Yes, you must use the Articles of Dissolution form provided by the Alaska Division of Corporations, Business, and Professional Licensing.

How long does it take to dissolve an LLC in Alaska?

The processing time for dissolution filings in Alaska can vary, but it typically takes a few days to a few weeks.

What taxes do I need to settle before dissolving an LLC in Alaska?

Before dissolving an LLC in Alaska, you must settle any outstanding state taxes or fees owed by the business.

Can I reinstate a dissolved LLC in Alaska?

Yes, you can reinstate a dissolved LLC in Alaska by filing the necessary paperwork and paying any required fees within five years of dissolution.

What happens to the assets of a dissolved LLC in Alaska?

After dissolution, the remaining assets of an LLC in Alaska must be distributed to creditors and members according to state law.

Do I need to publish a notice of dissolution in Alaska?

No, you are not required to publish a notice of dissolution for an LLC in Alaska.

Can I dissolve an Alaska LLC online?

You cannot file for dissolution of an LLC online in Alaska. You must file the necessary paperwork by mail or in-person.

Do I need to cancel my Alaska LLC registration with the Division of Corporations when dissolving the LLC?

Yes, you must formally cancel your Alaska LLC registration with the Division of Corporations, Business, and Professional Licensing in order to dissolve the business.

Are there any specific requirements for dissolution meetings in Alaska?

In Alaska, when voting to dissolve an LLC, the members or managers must hold a meeting in accordance with the LLC’s operating agreement or state law.

What should I do with my personal liability insurance when dissolving an LLC in Alaska?

It is recommended that you maintain your personal liability insurance until the dissolution process is complete and all liabilities are settled for the Alaska LLC.

Does Alaska require a specific reason for dissolving an LLC?

No, Alaska does not require a specific reason for dissolving an LLC. Members or managers can vote to dissolve the business at any time.

Can I dissolve an Alaska LLC with outstanding debts?

Yes, you can dissolve an Alaska LLC with outstanding debts, but you must settle those debts before distributing any remaining assets to members.

How do I notify the Alaska Department of Revenue when dissolving an LLC?

When dissolving an LLC in Alaska, you must notify the Alaska Department of Revenue by filing final state tax returns and settling any remaining tax liabilities.

Is there a waiting period after filing articles of dissolution in Alaska?

There is no specific waiting period after filing articles of dissolution in Alaska. The processing time will vary depending on the workload of the Division of Corporations.

Can I change my Alaska LLC’s name during the dissolution process?

No, you cannot change your Alaska LLC’s name during the dissolution process. The name on the articles of dissolution must match the current LLC name.

Do I need a registered agent when dissolving an LLC in Alaska?

Yes, you must continue to have a registered agent in Alaska until the dissolution process is complete and all legal obligations are met.

Can I transfer assets out of an Alaska LLC before dissolution?

You can transfer assets out of an Alaska LLC before dissolution, but it is important to ensure that all transfers are legally compliant and documented.

Can a dissolved LLC continue to do business in Alaska?

No, a dissolved LLC in Alaska cannot continue to do business. Once the business is dissolved, it ceases all operations and activities.

Are there any reporting requirements for a dissolved LLC in Alaska?

In Alaska, you must file a final tax return and complete any other necessary reporting requirements with state agencies within a specified timeframe after dissolution.

Can I reopen a dissolved Alaska LLC?

No, once an Alaska LLC is dissolved, it cannot be reopened. You would need to form a new LLC if you wish to continue operating a business.

Can I dissolve an LLC in Alaska if there is pending litigation?

Yes, you can still dissolve an LLC in Alaska if there is pending litigation. However, it is recommended to consult with legal counsel to address any potential legal issues.

Can I dissolve a foreign LLC in Alaska?

No, you cannot dissolve a foreign LLC in Alaska. You must follow the dissolution procedures and requirements of the state where the LLC was originally formed.

Are there any specific rules regarding distribution of assets in Alaska during LLC dissolution?

Yes, in Alaska, distribution of assets during LLC dissolution must be done in accordance with the LLC’s operating agreement or state law governing distribution of assets.

Can I dissolve an Alaska LLC if it is in default with the state?

Yes, you can dissolve an Alaska LLC even if it is in default with the state. However, you must address and resolve any outstanding defaults before the dissolution is complete.

Can the members of an Alaska LLC be held personally liable after dissolution?

In Alaska, after dissolution, members of an LLC can still be held personally liable for any remaining debts or obligations of the company if proper legal protocols are not followed during the dissolution process.

What happens to an Alaska LLC’s EIN after dissolution?

The EIN (Employer Identification Number) associated with an Alaska LLC does not get reassigned or cancelled automatically after dissolution. The EIN can be used for other business purposes or tax filings after the LLC is dissolved.

In Conclusion

Dissolving a business is not an easy task as a lot of homework is involved with the process. The official process might have only a few steps, however, before and after dissolving the LLC, there might be a lot of other tasks. In this case, it is highly recommended to get a professional service. If you are looking to file an LLC at $0, then ZenBusiness is your answer.

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. This article shared the general steps. Let us know if you have any queries.