What Is Alaska Dissolution?
Locking up the establishment or office doesn’t make the closure of a company final and legal. It must undergo a certain process to ensure that the business owners dealt with all responsibilities and obligations. The formal closing of a business is known as a Alaska dissolution.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Dissolving a company, whether it is a limited liability company (LLC) or a corporation, allows it to close the business legally and with the acknowledgment from the state. Additionally, it allows a business owner to deal with all the company’s liabilities to prevent problems in the future.
Who makes the decision to dissolve? – The dissolution of an LLC in Alaska requires the approval of the members. On the other hand, corporations will need a resolution that its board of directors approved. After that, the shareholders will vote on the dissolution. There are cases where a company has to dissolve involuntarily based on the state’s decision. This is usually for failing to file their annual report and paying fees or taxes.
How long does it take to dissolve a business? – Alaska dissolution depends on how long a company takes to complete the required actions. After filing, a company may have to wait for around 10 to 15 business days for the Alaska Division of Corporations to finish the processing of the Articles of Dissolution. The processing time may also vary depending on the division’s workload.
What Happens If Your Company Does Not Formally Dissolve?
A business entity that fails to dissolve formally will still have obligations with the state. Thus, it will still have to file biennial reports. Companies that don’t file reports by the due date will have to pay a penalty, which is 10% of the amount of its business tax for the period beginning the first of January of the year the businesses have to file.
Steps To Dissolve Your Business
Once the company has decided to dissolve, it should follow the process that the state of Alaska imposes.
1. File Articles of Dissolution with the state –An LLC in Alaska must file completed Articles of Dissolution with the Division of Corporations, Business, and Professional Licensing. Meanwhile, a corporation must file a Certificate of Election to Dissolve either before or along with the Articles of Dissolution. The company may send it by fax, by mail, or in person. The company should also submit a Credit Card Payment Form. Businesses may also include a money order or a check payable to the State of Alaska.
2. Remove all liabilities and obligations – Liquidate the assets of your business entity and settle its obligations following the order of priorities the state has set. If there are remaining properties or assets, you can distribute them after dealing with all liabilities.
3. Give notice to any claimants –Notify all creditors of the company that your business has filed for dissolution. Inform them where they can send their claims, what information they need to provide, and the deadline. The deadline is usually 120 days from the date of the notice.
4. Tax clearance – Alaska doesn’t require businesses to get a tax clearance to push through with the dissolution. However, your company needs to settle its tax obligations to avoid possible problems in the future.
5. Close all bank accounts, credit lines, permits, and licenses –After the Alaska dissolution, you can no longer use the company’s bank accounts. Thus, it will be best for you to close them. To protect your finances and reputation as the business owner, you will have to cancel the permits and licenses of your company.
How DoMyLLC can assist with streamlining the process
Alask dissolution requires patience and time. If you find the paperwork and responsibilities too much to handle, you can turn to a professional. You can leave it to our team. We offer personalized solutions and live support to clients like you. Contact DoMyLLC now and let us help you get started in dissolving your company in Alaska.
Alaska Dissolution FAQs
Dissolving an LLC in Alaska requires a $25 filing fee. Corporations, on the other hand, will have to pay $15 for the Articles of Dissolution and another $10 for the filing of the Certificate of Election to Dissolve.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
Businesses that undergo dissolution in Alaska won’t have to secure a clearance from the Department of Revenue.
The state usually takes 10 to 15 business days to process the Articles of Dissolution. However, the exact length of time they will take depends on the workload of the division. There may also be additional time for the return mailing.
Once a business has dissolved officially, other companies can use it. However, the company names of businesses that involuntarily dissolved won’t be available to other entities for 6 months.
Alaska Business Resources
Alaska Office of Secretary of State
Alaska Department of Commerce, Community, and Economic Development
PO Box 110806
Juneau, AK 99811