The name you choose for your LLC should be unique and must not resemble any other business registered in the state of Alabama.
When filing your LLC, make sure you have ‘LLC’ at the end of your company name.
To ensure that the name you have picked for your Alabama LLC is still usable, verify it on this business name search tool. In addition, you can also have the name you have selected reserved for a fee.
As a state required obligation, every Alabama LLC must select a Registered Agent. Your Agent will represent your LLC and will handle your legal paperwork should business come your way from the Secretary of State’s office.
As part of the requirements when starting an LLC in Alabama, this Registered Agent should be a resident and should have a street address in the state.
That said, you can hire a Registered Agent service and pay up to $160/year, or get an Alabama Registered Agent free of charge when you incorporate your LLC with IncFile.
Most states have you file your Articles of Incorporation to the Secretary of State, but in Alabama you file a Certificate of Formation to the Judge of Probate Court Office.
This is filed through mail, and it should be filed at the office of the county where your LLC’s office address is located. It is the Probate Court then that will forward the form to the Secretary of State together with the filing fee. When filing your Certificate of Formation, make sure you also include the following:
1) If members are allowed to add new members and its governing rules and conditions;
2) The clauses under which the termination of membership will lead to the closure of the LLC.
Fee for Alabama LLC filing: $100 filing fee to the Alabama Secretary of State and a separate fee for the Probate Court
The next step to forming an LLC is to obtain an Employer Identification Number. This LLC EIN number is used to keep track of your business tax and reports when you start operating your business.
The Alabama EIN can be obtained through the website of the IRS. There is no filing fee involved when acquiring for an LLC EIN.
The next step to starting an Alabama LLC is to start a separate bank account from your personal one. This is important because you will be able to keep all assets separate in the eyes of the law.
Although there are many options available, do the research to see which is right for you and your business. If you’re not sure where to get started, here is a great roundup of the best banking options.
After you have followed the five steps above, you are almost done with becoming a legally compliant LLC in Alabama. Below are some additional required and recommended steps to complete the entire process.
Every business can experience rough roads during the course of its operations. While this is true, being able to foresee these risks and come up with possible solutions can help. When you have a business plan, you are able to do this and more.
When incorporating an LLC in Alabama, first look into Alabama LLC tax code.
As this is an obligation that you must never overlook. It’s important to spend time learning about your tax obligations. You can also use our Alabama business taxes guide to help understand your Alabama LLC tax requirements.
Aside from business taxes, you’ll need to get your business licenses.
Alabama business licenses are required to allow your business to operate and remain complaint. You can gather all the needed paperwork using our Alabama business licenses and regulations guide.
An Operating Agreement may not be a legal requirement when you start a business, but it is recommended that you draft one for your business.
To sum it all up, your Operating Agreement will protect your Limited Liability Company status. If you need help drafting a customized Operating Agreement, here is a good resource.
If you want your LLC to be taken seriously, build a professional website. WordPress is the platform for the non-tech savvy entrepreneurs.
WordPress is easier to build and install compared with other content management platforms. We’d recommend partnering with Bluehost, a reliable web hosting service with 1-click to install options for WordPress and 24/7 online customer service.
See how to start a website through this step-by-step guide.
This guide is intended for information purposes when starting an LLC in Alabama and is not legal advice. You should always go to your lawyer for matters about specific questions on how to form an Alabama LLC.