If you have a limited liability company (LLC) in Alaska, you may need to shut down the business at some point. Maybe you’ve started another company or decided to relocate to another state — whatever the reason, you’ll need to follow the somewhat complicated LLC dissolution process.
If done incorrectly, you’ll still be responsible for annual reports and fees and could face additional penalties. But, lucky for you, this handy guide explains how to dissolve an LLC in Alaska.
Properly shutting down an LLC involves several crucial steps, as detailed below.
1. Vote for Dissolution
LLC owners, known as members, must vote to dissolve the LLC. Hopefully, you have an operating agreement that details the process. If not, Alaska law requires that you gain the written consent of all members. Once you do so, you’ll need to draft a resolution to dissolve the LLC.
2. Cancel Business Licenses and Permits
If you were required to get licenses and permits for your business, you’d need to contact the issuing agencies to cancel them so that you’re not charged renewal fees. If you have any outstanding fees, you’ll likely need to pay them before you are allowed to cancel.
3. Notify Creditors
If you owe money to any creditors, you’ll need to notify them in writing of the dissolution and give them detailed instructions on filing any claims for the outstanding debt. Also, include a mailing address for claims, and specify a deadline.
In Alaska, you must notify creditors after your effective date of dissolution. The deadline you set for claims must be more than four months after you send the notice or more than four months after you’ve filed your articles of dissolution— whichever comes later.
4. Notify Tax Departments
Notify any relevant tax authorities of the dissolution and pay any outstanding taxes due.
5. Cancel Contracts and Settle Financial Obligations
If you have contracts with vendors, lessors, or any other outstanding financial obligations, you’ll need to ensure all your obligations are fulfilled and all contracts are canceled.
6. Distribute Assets to Members
If the LLC has any assets remaining in any form after all financial obligations have been settled, they must be distributed to members based on LLC ownership percentages. If the assets are equipment, property, or other non-cash assets, they’ll need to be sold first so distributions can be made in cash.
7. File the Dissolution Papers with Alaska
In Alaska, the process to officially dissolve your LLC is to print and mail your Articles of Dissolution.
First, go to Alaska’s Department of Commerce, Community, and Economic Development’s Forms by Event Type page, and download the Articles of Dissolution.
Fill it out and print it. Then, you can either file it in person at the Anchorage or Juneau offices or mail it to the Juneau office.
The fee is $25. Cash will only be accepted for in-person filings, so you must use a check or credit card if you mail it.
The Anchorage office is:
550 W 7th AVE, STE 1500
Anchorage, AK 99501-3567
The Juneau office is:
PO Box 110806
Juneau, AK 99811-0806
Regardless of the reason, LLC dissolution must be done right to avoid legal issues and financial penalties. Therefore, it’s highly recommended that you employ the services of an attorney to ensure everything is done correctly and all bases are covered.
How much does it cost to dissolve an LLC in Alaska?
It costs $25 to file your Articles of Dissolution.
How long does it take to dissolve an Alaskan LLC?
Once you’ve filed your Articles of Dissolution, the processing is approximately 10-15 business days.
Should I close an unused LLC in Alaska?
You should close your Alaska LLC if you don’t plan to use it. If not, you’ll be liable for all fees and filings.
What happens if I don't dissolve my LLC in Alaska?
If you don’t dissolve your LLC, you will still be held accountable for filing the Biennial Report every two years and paying the necessary fees.
What is the difference between dissolution and termination of LLC in Alaska?
An Alaska LLC is dissolved when it files the Articles of Dissolution with the state government. After that, it can still operate in a limited capacity as it winds up and liquidates assets. However, once all assets have been disposed of and operations cease, the LLC has officially terminated.