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Alabama · Close an LLC · updated

How to dissolve an LLC in Alabama

To dissolve an LLC in Alabama, the members approve it, the company pays its debts and final taxes, and you file the dissolution with the state (Alabama's fee is $100). As of October 2026.

Alabama state fee$100per the state's fee schedule
Our filing service$120we prepare and file it
State fee + ours$220card processing is added at checkout

Questions first? Ray or Vinny picks up at (954) 470-8356.

The 6 steps to close an Alabama LLC

Do them in this order; step 4 is the only one the state charges for.

  1. 1

    Get the members' approval

    Check your operating agreement

    Your operating agreement says who must agree and how. Put the decision in writing and keep it with the company records.

  2. 2

    Bring state filings and taxes current

    Where people get stuck

    Many states will not accept a dissolution while reports or state taxes are overdue. Alabama: Business Privilege Tax of $100 or less is fully exempt with no return required (tax years from 2024). A return is only due if the computed tax exceeds $100. Check the Alabama deadline.

  3. 3

    Wind up the business

    Before you file

    Collect what you are owed, pay or settle debts, cancel contracts and leases, and only then distribute what is left to the members.

  4. 4

    File the dissolution with the state

    We file this one

    You file it with Alabama's business filing office; Alabama's fee is $100 (Alabama fee schedule). The current form is on Alabama's official site. We file it for $120 plus the state fee.

  5. 5

    Close the federal and state accounts

    Easy to forget

    File the final federal return and check the "final return" box, then close the IRS business account (IRS: closing a business). Cancel any sales tax permit and licenses, and close the bank account last. Alabama sales tax permit.

  6. 6

    End the registered agent after the state confirms

    Last step

    Keep the agent until the state confirms the dissolution, so any legal papers served in the meantime still reach you.

Frequently asked questions

How much does it cost to dissolve an LLC in Alabama?

Alabama's fee is $100 for the dissolution. If we file it, our fee is $120 on top, and checkout shows the total with the card processing fee before you pay.

Can I dissolve an Alabama LLC myself?

Yes. File it directly with Alabama's business filing office; the official link is in step 4.

What happens if I just stop using the LLC in Alabama?

Fees and reports keep coming due. If they go unpaid the state can dissolve the LLC itself, and the unpaid fees, penalties and taxes can follow you. Filing the dissolution ends them.

Do I need to tell the IRS I closed the LLC?

Yes. File a final return with the final box checked and close the business account; the IRS closing-a-business page lists the steps.

Is this page legal advice about closing an Alabama LLC?

No. It explains the steps in general terms. For your situation, talk to a licensed attorney or CPA, or book a free call with us.

More Alabama business guides

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Closing the company

Have us file the Alabama dissolution

$120 plus Alabama's $100 state fee. Checkout shows the full total before you pay.

Rather talk first? Call Ray or Vinny at (954) 470-8356.