I started a LLC in Sept 1998. In 1999, AL started the Business Privilege Tax on LLC's and Corporations. I filed form 8832 and file a Schedule C for my Tax Return on this sole proprietorship business. This business was doing computer consulting. I have had no income for this LLC since Nov 2003.

When I was notified by the AL Dept of Revenue, I filed the AL form PSA forms for 2000, 2001, 2002, but in 2003, I received this documentation that indicated that sole proprietorship and limited liability partnerships were not to be taxed, so on Feb 11, 2003 I wrote the AL Dept of Revenue. I never heard back from them until 2010. I have received a bill for $213.43 for the Tax year 2004 (1/1/03 - 12/31/03). ($100 Tax, $38.43 Interest, $50 Late File Penalty, $25 for Late Payment Penalty).

I have written the AL Dept of Revenue, they say I owe the money. I told them it is not a viable company any longer. I ask about the Statue of Limitations and having never received any response to my inquiry some 7 years, 8 months ago. I've gotten no where with them.

Does the Statue of Limitations cover this area of business law?
Am I personally liable to pay this bill even though the LLC has had no income since 11/2003?

Thanks, I appreciate any information you can provide me. I have sent the Secretary of State a letter telling them to dissolve the LLC. They don't make it easy on a small business. They want the minimum $100 Business Privilege Tax from everyone, regardless if you are active that year or not.

Have you browsed through the information in LawInfo's Free Legal Resource Center to learn more about your issue yet? See: http://www.lawinfo.com/consumer.html and http://resources.lawinfo.com/en/index.html. You can certainly try to speak to a lawyer to determine what legal options may be available. In the meantime, you may be able to learn more on your own. Search the "Free Legal Resources" tab, or browse the Consumer Resources. Good luck.

Thanks, I have looked into some of those articles, but haven't found anything specific to my problem. I found out how to dissolve the LLC, of course, they want more court fees for probate, Secretary of State, etc. Alabama doesn't make it easy on small business owners.

I had a INC in TX and 1 year they hit small companies with a minimum Franchise tax, but amended it...if no income, no franchise tax. Alabama is not that progressive. First it isn't the Secretary of State that is handling this, it is the Al Dept of Revenue. After almost 8 years, they respond to me, only because I wrote the Gov of Al in an attempt to locate the document I had previously read about limited partnerships and sole proprietorships being excluded. I finally found my copy, but the AL Dept of Revenue, once contacted by Gov Riley's office, didn't give a hoot...this is what we say...end of story.

I would dissolve the LLC for sure..

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