# How to Dissolve an LLC in Alabama: Forms, Fees and Steps > Dissolve an Alabama LLC: Articles of Dissolution cost $100 ($104 online). Why the business privilege tax runs until you file, and the rules for foreign LLCs. Canonical: https://origindatapartners.com/guides/dissolve-llc-alabama By: Origin Data Partners Status: Published Published: 2026-11-11 Updated: 2026-11-11 Sources checked: 2026-11-11 ## Quick answer To dissolve an LLC in Alabama, wind up the business, then file the Domestic LLC Articles of Dissolution with the Secretary of State: $100, or $104 through the Alabama.gov online service. Filing is what stops the business privilege tax, which stays due every year until the LLC is dissolved. A foreign LLC withdraws instead and needs a Department of Revenue Certificate of Compliance. ## Key points - The Secretary of State charges $100 to dissolve an Alabama LLC or corporation; paying through the online service adds $4. - Alabama's business privilege tax keeps coming due until the dissolution is on record, even for an LLC that stopped trading long ago. - A foreign LLC needs a Department of Revenue Certificate of Compliance, no more than 6 months old, before it can withdraw. - Alabama no longer has an annual report with the Secretary of State, so nothing forces a forgotten LLC off the register except a filing. ## Alabama LLC dissolution: forms, fees and where to file Alabama keeps the paperwork short. A domestic LLC files one document, the Domestic LLC Articles of Dissolution, with the Secretary of State's Business Entities Division. The [online dissolution service](https://www.alabamainteractive.org/sos/dissolution/welcome_input.action) lists a $100 Secretary of State fee, $104 in total when paid through Alabama.gov, and the same service handles domestic corporations. An LLC formed in another state does not dissolve in Alabama; it withdraws its registration. The table sets out each Alabama closing document, its cost and where it goes. For the steps that are the same in every state, from the member vote to the final IRS returns, see [how to dissolve an LLC](https://origindatapartners.com/guides/how-to-dissolve-an-llc). | Document | Form | Fee | Where | Notes | | --- | --- | --- | --- | --- | | Close a domestic LLC | Domestic LLC Articles of Dissolution | $100 ($104 online) | Secretary of State: Alabama.gov online service, or mail to PO Box 5616, Montgomery | Puts the dissolution on record and ends the yearly privilege tax | | Close a domestic corporation | Domestic Business Corporation Articles of Dissolution | $100 ($104 online) | Secretary of State | Same online dissolution service as LLCs | | Withdraw a foreign LLC | Foreign LLC Certificate of Withdrawal | $100 ($104 online) | Secretary of State | Attach a Department of Revenue Certificate of Compliance | | Prove tax compliance (withdrawals) | ADOR Certificate of Compliance, requested online | $13.30 | Alabama Department of Revenue | Secretary of State accepts it for 6 months | Source: [Alabama Secretary of State online services: domestic dissolution](https://www.alabamainteractive.org/sos/dissolution/welcome_input.action) ## Steps to dissolve an LLC in Alabama, in order Alabama's LLC law lists the events that dissolve a company, and one of them is plain [consent of all members](https://law.justia.com/codes/alabama/title-10a/chapter-5a/article-7/section-10a-5a-7-01/), unless the operating agreement names a different trigger. From that moment the Alabama LLC exists only to wind up its affairs. A workable order of operations: - Record the decision: have every member sign a dated written consent, or hold the vote your operating agreement requires. - Wind up: collect receivables, sell or hand out assets, end leases and contracts, and pay or set aside money for debts before members take anything. - File the last Alabama tax returns, including sales tax, withholding and any business privilege tax return still owed. - Close the Department of Revenue accounts in My Alabama Taxes and settle the unemployment account with the Alabama Department of Workforce. - File the Domestic LLC Articles of Dissolution with the Secretary of State and download the filed copy the same day. - File final federal returns and close the IRS business account once every return is filed and every balance paid. - Hand the books to a named custodian before you switch off accounting, payroll and email. Source: [Code of Alabama 10A-5A-7.01: events of dissolution (Justia)](https://law.justia.com/codes/alabama/title-10a/chapter-5a/article-7/section-10a-5a-7-01/) ## Filing the Alabama Articles of Dissolution Alabama law frames the filing as part of winding up. Under [Code of Alabama section 10A-5A-7.02](https://law.justia.com/codes/alabama/title-10a/chapter-5a/article-7/section-10a-5a-7-02/), a company that is winding up may deliver a statement of dissolution to the Secretary of State. The statute says "may": the LLC is dissolved by the triggering event itself. Owners still want the filing, because the Department of Revenue ties the privilege tax to what the Secretary of State's record shows. You can file on paper or online. The Secretary of State's [downloads page](https://www.sos.alabama.gov/business-entities/business-downloads) carries the Domestic LLC Articles of Dissolution as a form you fill in on screen and print, and the Business Entities Division takes mail at PO Box 5616, Montgomery, AL 36103-5616 ([Secretary of State](https://www.sos.alabama.gov/business-entities)). The [paper form](https://www.sos.alabama.gov/sites/default/files/2022-09/DomesticLLCDissolution.pdf) asks for two copies, a self-addressed stamped envelope and the $100 fee. Online, the charge is the $100 state fee plus a $4 portal charge, paid by card. Save the filed document as soon as it is ready: the online service keeps it for 15 days and mails nothing. Have the LLC's exact recorded name to hand before you start, and keep a copy of the members' consent with the filed articles so the authority to dissolve is documented in one place. This guide is general information, not legal or tax advice. Fees and forms change: confirm them with the agency before you file, and ask an attorney or accountant about your situation. Source: [Alabama Secretary of State: Business Downloads](https://www.sos.alabama.gov/business-entities/business-downloads) ## Alabama business privilege tax and the accounts to close The tax that catches Alabama owners out is the business privilege tax. The Department of Revenue says it [remains due every registered year](https://www.revenue.alabama.gov/individual-corporate/alabama-business-privilege-tax-and-corporate-share-tax/) until the entity is legally dissolved or withdrawn through the Secretary of State, whether or not it does any business. An LLC that stopped trading years ago but never filed is still on the privilege tax rolls. LLCs, S corporations and disregarded entities report on Form PPT. Small companies get some relief. For tax years beginning after December 31, 2023, an entity whose privilege tax comes to $100 or less does not have to file the return. That makes a dormant Alabama LLC cheap to keep, but it does not close it. - Sales and use tax: close the account through My Alabama Taxes, giving the closing date and the reason. The [Department of Revenue](https://www.revenue.alabama.gov/faqs/how-do-i-close-my-account/) will not backdate a closure beyond the current period, and every delinquent return has to be filed. - Withholding: file the last withholding return for the final payroll and give employees their W-2s. - Unemployment: tell the Alabama Department of Workforce the business has closed and pay the last quarter's contributions. Late contributions carry interest of [1% a month](https://workforce.alabama.gov/employers/faq/) until paid. - City and county business licenses are separate from the state accounts; cancel each one the LLC holds. Source: [Alabama Department of Revenue: Business Privilege Tax](https://www.revenue.alabama.gov/individual-corporate/alabama-business-privilege-tax-and-corporate-share-tax/) ## Dissolving a corporation in Alabama An Alabama business corporation files its own form, the Domestic Business Corporation Articles of Dissolution, which sits on the same [Secretary of State downloads page](https://www.sos.alabama.gov/business-entities/business-downloads). It goes through the same online dissolution service for the same $100 state fee. The privilege tax rule does not change for corporations: the tax keeps coming due until the dissolution is filed. Corporations used to file a yearly report with the Secretary of State. That requirement is gone: [corporations are no longer required to file an annual report](https://www.sos.alabama.gov/business-entities) there. For an owner winding down, it means no missed-report notice will flag a company you forgot about; the privilege tax notices will. The board resolution, shareholder vote and final Form 1120 or 1120-S are covered in [how to dissolve a corporation](https://origindatapartners.com/guides/dissolve-a-corporation). Source: [Alabama Secretary of State: Business Entities](https://www.sos.alabama.gov/business-entities) ## What happens if you just stop running an Alabama LLC Walking away does not end an Alabama LLC. With no annual report to miss, there is no report-based purge that quietly strikes the company off, and we found no Alabama Secretary of State page that describes administratively dissolving an LLC. The company stays on the register and on the Department of Revenue's list of privilege tax filers. The cost of leaving it open shows up later. Any time the company needs a [Certificate of Compliance](https://www.revenue.alabama.gov/faqs/how-do-i-obtain-a-certificate-of-compliance-from-alabama-department-of-revenue/), for a withdrawal or a buyer's due diligence, the Department issues it only after confirming that every required return was filed and the tax shown on those returns paid. Rebuilding several years of returns costs far more than the $100 filing. Source: [Alabama Department of Revenue: Certificate of Compliance](https://www.revenue.alabama.gov/faqs/how-do-i-obtain-a-certificate-of-compliance-from-alabama-department-of-revenue/) ## Withdrawing a foreign LLC from Alabama An LLC formed elsewhere but registered in Alabama files a Foreign LLC Certificate of Withdrawal. Alabama adds a tax check here that it does not apply to domestic dissolutions: the withdrawal must carry a Certificate of Compliance from the Alabama Department of Revenue ([Secretary of State downloads](https://www.sos.alabama.gov/business-entities/business-downloads)). - Request the certificate online from the Department of Revenue. It costs $13.30, a $10 fee plus a $3.30 service charge, and is issued only once all required returns are filed and the tax shown paid. - If the LLC skipped privilege tax returns because its tax was $100 or less, expect the Department to ask for the BPT-Exempt affidavit before it issues the certificate. - File the withdrawal while the certificate is fresh: the [Department of Revenue](https://www.revenue.alabama.gov/faqs/how-do-i-withdraw-or-dissolve-my-business/) notes the Secretary of State will not accept one more than 6 months old. - Pay the $100 withdrawal fee, or $104 through the [online withdrawal service](https://www.alabamainteractive.org/sos/foreign_withdrawal/welcome_input.action). - Withdrawing from Alabama leaves the LLC alive in its home state; dissolve it there separately if the business is ending. Source: [Alabama Department of Revenue: How do I withdraw or dissolve my business?](https://www.revenue.alabama.gov/faqs/how-do-i-withdraw-or-dissolve-my-business/) ## Alabama records to keep, and to export before cancelling software Once the articles are on file, keep the LLC's books where someone can reach them. The IRS expects employers to hold [employment tax records for at least 4 years](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) after the tax was due or paid, and a final federal return is still owed for the year the business closes ([IRS](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business)). File the stamped Alabama articles, the Department of Revenue closure confirmations and the last privilege tax return together. Pull the data out before the subscriptions lapse. Accounting, payroll, CRM and help desk tools tend to delete an account soon after billing stops. Our guide to [exporting company records before closing](https://origindatapartners.com/guides/export-company-records-before-closing) lists what to take from each system, and [business records after closing](https://origindatapartners.com/guides/business-records-after-closing) covers who should hold them and for how long. Source: [IRS: How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) ## An Alabama LLC's records can still be an asset A closing Alabama company often holds years of customer tickets, job files, quotes and internal email. That history shows how real work got done, which is what AI developers license to train and test their systems. Any deal would be a license of de-identified copies, and only after the company has checked its rights and its customers' privacy. [Selling company data after closing](https://origindatapartners.com/guides/sell-company-data-after-closing) explains how that works. Closing the company? Before you cancel software or delete files, find out whether its records are worth licensing: years of tickets, work orders, email and code can be. [Get a free estimate of what your records could be worth](https://origindatapartners.com/check-fit). ## Questions and answers ### How much does it cost to dissolve an LLC in Alabama? The Secretary of State fee is $100, and filing through the Alabama.gov online service costs $104 in total. A foreign LLC pays the same $100 to withdraw, plus $13.30 for the Department of Revenue Certificate of Compliance it has to attach. ### Can I dissolve an Alabama LLC online? Yes. The Secretary of State's domestic dissolution service on Alabama.gov takes the filing and a card payment. Download the filed document within 15 days, because the service does not mail a notice. You can also print the form and mail it to PO Box 5616, Montgomery. ### Do I need a tax clearance to dissolve an LLC in Alabama? Not for a domestic LLC: the Department of Revenue's steps for a domestic dissolution only call for the articles of dissolution. A foreign LLC leaving Alabama does need a Certificate of Compliance from the Department of Revenue, issued within the previous six months. ### What happens if I don't dissolve my LLC in Alabama? The business privilege tax stays due for every year the LLC remains registered, whether it trades or not. Alabama has no annual report that would flag the company, so it can sit on the register and the tax rolls indefinitely. ### Do I still file a business privilege tax return when closing? File any privilege tax return the LLC owes for the years it was registered, on Form PPT. For tax years beginning after December 31, 2023, an entity whose tax comes to $100 or less does not have to file, though the Department may ask for an exemption affidavit before certifying compliance. ### How do I close a business in Alabama? Close the tax accounts and the legal entity separately: file final sales tax and withholding returns, close the accounts in My Alabama Taxes, settle unemployment contributions with the Department of Workforce, then file articles of dissolution with the Secretary of State. A sole proprietor has no entity to dissolve and only closes accounts and licenses. ### How do I dissolve a corporation in Alabama? File the Domestic Business Corporation Articles of Dissolution with the Secretary of State, online or by mail, with the $100 fee. Corporations no longer file annual reports with the Secretary of State, but the privilege tax runs until the dissolution is filed. ## Sources - [Alabama Secretary of State online services: domestic dissolution](https://www.alabamainteractive.org/sos/dissolution/welcome_input.action) - [Alabama Secretary of State: Business Downloads](https://www.sos.alabama.gov/business-entities/business-downloads) - [Alabama Secretary of State: Domestic LLC Articles of Dissolution (PDF form)](https://www.sos.alabama.gov/sites/default/files/2022-09/DomesticLLCDissolution.pdf) - [Alabama Secretary of State: Business Entities](https://www.sos.alabama.gov/business-entities) - [Alabama Department of Revenue: How do I withdraw or dissolve my business?](https://www.revenue.alabama.gov/faqs/how-do-i-withdraw-or-dissolve-my-business/) - [Alabama Department of Revenue: Certificate of Compliance](https://www.revenue.alabama.gov/faqs/how-do-i-obtain-a-certificate-of-compliance-from-alabama-department-of-revenue/) - [Alabama Department of Revenue: Business Privilege Tax](https://www.revenue.alabama.gov/individual-corporate/alabama-business-privilege-tax-and-corporate-share-tax/) - [Alabama Department of Revenue: How do I close my account?](https://www.revenue.alabama.gov/faqs/how-do-i-close-my-account/) - [Alabama Department of Workforce: Employer FAQ](https://workforce.alabama.gov/employers/faq/) - [Code of Alabama 10A-5A-7.01: events of dissolution (Justia)](https://law.justia.com/codes/alabama/title-10a/chapter-5a/article-7/section-10a-5a-7-01/) - [Code of Alabama 10A-5A-7.02: effect of dissolution (Justia)](https://law.justia.com/codes/alabama/title-10a/chapter-5a/article-7/section-10a-5a-7-02/) - [IRS: Closing a business](https://www.irs.gov/businesses/small-businesses-self-employed/closing-a-business) - [IRS: How long should I keep records?](https://www.irs.gov/businesses/small-businesses-self-employed/how-long-should-i-keep-records) ## Related reading - [LLC Dissolution Fees and Forms by State (2026)](https://origindatapartners.com/guides/dissolve-llc-by-state) - [How to dissolve an LLC: steps, forms and fees by state](https://origindatapartners.com/guides/how-to-dissolve-an-llc) - [How to dissolve a corporation: forms, fees and Form 966](https://origindatapartners.com/guides/dissolve-a-corporation) - [How to close a business: a step-by-step US checklist](https://origindatapartners.com/guides/closing-a-business-checklist) - [Cancel Google Workspace or delete Slack? Export data first](https://origindatapartners.com/guides/export-company-records-before-closing)