Set up your LLC in Alabama without the hassle.
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if your business name is available in Alabama!
There are many reasons to form an LLC in Alabama. Here are the main ones:
Legal protection in case of bankruptcy or lawsuits
Separation of personal and business assets
Tax benefits: flexibility & pass-through taxation
Increasing credibility and trust for your business
Check if your LLC name is available in Alabama
Choose a registered agent for your LLC
Sit back and let us take care of the paperwork
You will need to follow these five steps to create your LLC in Alabama:
You can name your LLC almost anything you want in Alabama, as long as it complies with state rules. The name must include “Limited Liability Company,” “LLC,” or “L.L.C.” and must be distinguishable from any other registered business in the state. Unlike most states, Alabama requires you to reserve your business name before filing your LLC formation paperwork. This is a mandatory step. You’ll need to submit a Name Reservation Request to the Alabama Secretary of State and receive approval before moving forward with the Certificate of Formation. You can complete the name reservation online for a $28 fee or by mail for $25. The approved name reservation is valid for 1 year and must be included when you file your formation documents. To check if your desired name is available, conduct an Alabama business entity search: Visit the Alabama Secretary of State website, and from the homepage, click on the “Business Services” menu, then select “Business Entity and Name Search.” This will let you search to see if any other business in the state is already using the name you want.
According to the Alabama registered agent requirements, every business entity organized in the state must designate an individual or business to serve as their registered agent in Alabama. A registered agent’s main job is to receive service of process and other notices for the business. The registered agent’s location is known as their registered office. If someone sues your business, for example, the process server will deliver the papers to your Alabama registered agent.
A registered agent must be:
The registered office must be a street address in Alabama, not a P.O. box or other mailbox service, where the registered agent is available to receive service of process and other paperwork. It does not have to be a location where your LLC does business.
You or another member may serve as the registered agent of your LLC. You may use your business address or your personal address as the registered office. Keep in mind that the registered office is part of the public record.
Now that you have decided on a name for your business and reserved it with the state, you are ready to file the documents that will officially create your LLC. In Alabama, the main document that creates an LLC is known as the “Certificate of Formation.” The person filing the Certificate of Formation is the “organizer.” This person could be an owner of the business, officially known as a “member” of the LLC, or an authorized representative.
The Alabama LLC cost is $236, which includes the $200 LLC state filing fee (for the Certificate of Formation), $25 name reservation fee, and $11 processing fee.
The information that you will need for your Certificate of Formation includes:
You may file the Certificate of Formation online or by mail. To file online, go to the “Business Services” section of the Alabama SOS website and click the “Domestic Formation” link. This will take you to the online submission page, where you can input the required information, upload documents like the Name Reservation Certificate, and pay the filing fee.
You can submit the Certificate of Formation by mail to the following address: Alabama Secretary of State, Business Services, P.O. Box 5616, Montgomery, AL 36103. You can pay the filing fee by check, money order, or credit card. In addition to the original Certificate of Formation, you should include a copy of the Certificate and a stamped, self-addressed envelope. The SOS will return the file-stamped copy and a receipt to you.
Alabama does not require LLCs to have written company agreements. Although you’re not required to get an Alabama LLC operating agreement in the state, having one can save you many future problems, so we consider it a must. An operating agreement may offer you more control over the way your business will be treated in case of dispute or legal action. Alabama does not set any specific requirements for the agreement although state law sets certain limits on what a company agreement can do, including:
The IRS issues Employer Identification Number (EIN) to businesses and other organizations. Please note that this is different from the Entity ID Number issued by the Alabama SOS for your LLC. In addition to its role as an identification number for tax purposes, an EIN is required for many of your business operations, including opening a business bank account or applying for a business loan.
The IRS states that you must have an EIN if your LLC meets certain criteria, including if you have employees or if you operate your business as a corporation or partnership. Every LLC with more than one member will operate similar to a corporation or partnership, as discussed further below.
You can get an EIN by yourself online or by submitting Form SS-4 to the IRS by mail or fax. Doing it online is the most straightforward, and fastest, way of doing it. From Alabama, you can mail the Form SS-4 to the following address: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. You may also fax it to (855) 641-6935.
There are different costs to form an LLC in Alabama and maintain it. We’ve listed all of them in this post.
This step-by-step guide details the steps and requirements you need to know in order to name your Alabama LLC.
A registered agent is a mandatory step in your Alabama LLC formation process – learn more about the requirements.
This guide details which licenses and permits your LLC may need to obtain in Alabama and how to get them.
At Tailor Brands, we love nothing more than helping people start their business. We take care of the LLC formation and offer additional services so you can focus on launching and growing your business, while staying informed and compliant with state regulations.
Here’s why people choose to form their LLC with us:
Our products are user friendly, all you need to do is answer a few questions about your business and let us take care of all the rest.
Our platform is easy to use and is optimally designed to guide you through your LLC formation process and business journey.
We offer more products to help you set and manage your business like registered agent, business licenses, and annual report.
The Alabama state filing fee for the Certificate of Formation is $200 for a domestic LLC (and $150 for a foreign LLC). You also need to reserve your business name in advance to get a Name Reservation Certificate which is required to be filed with the LLC formation forms. The filing fee for the name reservation is $25, and the processing fee is $11. Therefore, the total fees you will be charged for filing a domestic LLC are $236.
To dissolve an LLC in Alabama, you must file a Domestic LLC Articles of Dissolution form found on the Secretary of State website. A filing fee of $100 is required by the Secretary of State, in addition to a minimum of $50 in legal recording fees. You must file a completed original and two copies to a Judge of Probate in the county where the original Certificate of Formation was filed.
Form an LLC in Alabama, Hassle-Free
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.
