Dissolving a company in Alabama
The state-level facts for closing an LLC or corporation in Alabama: the dissolution filing, its fee, whether tax clearance comes first, and the tax obligations that keep accruing until the filing is accepted. Every fact links to the official government source it was read from.
Alabama LLC
- Dissolution filing
- Domestic Limited Liability Company (LLC) Articles of Dissolution — filed with the Alabama Secretary of State, Business Services. (official source)
- Filing fee
- $100 (official source)
- Tax clearance before filing
- Not required before the dissolution filing. (official source)
- Alabama Business Privilege Tax
- The Business Privilege Tax remains due every registered year until the entity is legally dissolved or withdrawn through the Alabama Secretary of State, regardless of whether the entity is actively doing business. (official source)
- Final state return
- Keep filing Business Privilege Tax returns through the year the Secretary of State records the dissolution; the obligation only stops once the entity is legally dissolved. (official source)
Worth knowing
- Foreign withdrawals must include a Certificate of Compliance from the Alabama Department of Revenue that is no more than 6 months old; the certificate costs $10 plus a $4 service charge and is requested online.
- Paper filings must be typed, submitted in duplicate with a self-addressed stamped envelope, and are not accepted by email.
- A dishonored check adds a $30 fee and the filing is removed from the index; card payments carry a convenience fee of 3% plus $2.
- Because Business Privilege Tax accrues every year until the dissolution is recorded, delaying the Secretary of State filing costs at least $100 per extra year.
Alabama corporation
- Dissolution filing
- Domestic Business Corporation Articles of Dissolution — filed with the Alabama Secretary of State, Business Services. (official source)
- Filing fee
- $100 (official source)
- Tax clearance before filing
- Not required before the dissolution filing. (official source)
- Alabama Business Privilege Tax
- The Business Privilege Tax remains due every registered year until the entity is legally dissolved or withdrawn through the Alabama Secretary of State, regardless of whether the entity is actively doing business. (official source)
- Final state return
- Keep filing Business Privilege Tax returns through the year the Secretary of State records the dissolution; the obligation only stops once the entity is legally dissolved. (official source)
Worth knowing
- The dissolution must be approved by stockholders (with vote counts stated on the form) or by written consent of all stockholders under Section 10A-2A-14.02(f).
- Foreign withdrawals must include a Certificate of Compliance from the Alabama Department of Revenue that is no more than 6 months old; the certificate costs $10 plus a $4 service charge.
- Paper filings must be typed, submitted in duplicate with a self-addressed stamped envelope, and are not accepted by email.
- Because Business Privilege Tax accrues every year until the dissolution is recorded, delaying the Secretary of State filing costs at least $100 per extra year.
Closing a company is more than the state filing — payroll accounts, sales-tax permits, franchise-tax finals, federal returns, and creditor notices all have their own order and deadlines. A Winddown runbook sequences all of it for your specific company, with drafted consents and creditor notices included.
Sourced from the official pages linked above; facts we could not verify against an official source are shown as links rather than numbers. Requirements and fees change — the linked pages are authoritative. General information, not legal or tax advice.