1. Choose a Name for Your Alabama Limited Liability Company
Check for an Available Name for the LLC in Alabama: Before you form an LLC in the state of Alabama you need to select a name for your small business. You must choose a name that is available for use in the state of Alabama. You should perform a search of online databases and other records to find out if a name is available for your proposed new Limited Liability Company. You can start by searching the business entity database found on the official website of the Alabama Secretary of State at Alabama LLC.
Reserve a Name for Your Alabama LLC: In Alabama you must reserve a name for your LLC before you file the LLC formation documents. You can download a name reservation form online at Alabama LLC. After you have reserved a name for your LLC with the Alabama Secretary of State, the certificate will be available to download for 15 days. This certificate will not be mailed. You must download the certificate online.
Filing for Trademarks Protection and Doing an LLC Name Search: Even if you have searched available records and databases to make sure that the name that you want to use to form your LLC is available in Alabama, another company could still be using that name somewhere else in the country. There could also be other circumstances that prevent you from using a particular name for your LLC. You can find out more about how to choose a name for your company at how to choose a name for your llc.
Alabama LLC Name Requirements: An LLC registered in Alabama must contain one of the following in its name: "LLC," or “L.L.C.” or "Limited Liability Company." You should remember that the term “LLC” stands for “Limited Liability Company,” and not “LLC Corporation, “Limited Liability Corporation,” or other variations. An LLC and a corporation are different types of legal entities.
2. Find a Registered Agent in Alabama
Your Alabama LLC will need a registered agent within the state of Alabama that will act as an agent for service of process. This means that if anyone files a lawsuit against your company or if the State needs to take any action against your company or provide other official notice, it can serve the notice of the dispute with the registered agent in Alabama to ensure that the notice will reach the LLC. There are various companies that can perform this service for your LLC for fees between $75 and $150. The Alabama Secretary of State website provides a list of some registered agent services. You can download the list at Alabama LLC.
3. File a Certificate of Formation with the Alabama Secretary of State
Minimum Requirements for the Certificate of Formation: The Certificate of Formation for your LLC must contain the name and purpose of your LLC, the address of your initial registered office, your registered agent, and the name of the organizer. You may also include the name and address of one or more managers. The Certificate of Formation must be signed by the organizer before you submit the document.
Other Alabama Legal Provisions: You may include additional clauses in the Certificate of Formation of your Limited Liability Company. It is best to consult a lawyer for guidance in creating your Certificate of Formation.
Where to Submit the Certificate of Formation for Filing: You should submit the signed original Certificate of Formation and two copies to the office of the Judge of Probate in the county where the initial registered office of your LLC will be located.
Filing Fee: The fee to file a Certificate of Formation in Alabama is $100.00.
4. Form an Alabama Limited Liability Company Agreement (Operating Agreement)
Once you have formed your LLC in Alabama by filing the Certificate of Formation, the members of your LLC must sign an LLC Operating Agreement that governs how the company will be operated. There is no standard form for this agreement in Alabama. Unlike corporations, LLCs are usually operated in a simple way. The LLC Operating Agreement that you Form will govern all aspects between the members of the LLC, similar to how bylaws or agreements between sharesholders, like buy-sell agreements , work in a corporation. The details of the LLC Operating will depend on many factors, including, the number of people involved, how much money is being invested, who will manage the company, what kind of management control the members will have, and how and when money will be distributed. LLC Operating Agreements can also vary depending on whether it will be used to operate a retail store, own and develop real estate, or used for investors in a technology start-up company. Operating Agreements can be quite complex and should be carefully drafted.
Along with your Operating Agreement, there are other formation documents that you may need for your LLC. You may need to make securities filings, obtain an EIN from the IRS, and obtain the required business license for your business. You can learn how to get a business license in your city through our online guide at http://www.cityapplications.com/business-licenses.html.
It is recommended that you consult an Alabama lawyer and your accountant when it is time to draft your LLC Operating Agreement so that you can be sure to be in compliance with all state legal requirements and federal tax laws. There are also corporate services companies who can make all of the filings for you and provide you with all of the form documents you need for a fixed fee.
5. Qualify your Alabama LLC to Do Business in Other States
You will need to check if you need to register or qualify the LLC to do business in you home state if your main office is not located in Alabama. Most states require a qualification and require that you pay taxes in your home state. You can learn more about how to qualify your LLC to do business in other states online at [Qualifying to Do Business in Other States].
6. Make Annual Filings and Pay Annual Taxes in Alabama
You do not need to file an annual report for your LLC in Alabama. However, you are required to file a Business Privilege Tax Return and pay annual taxes. You can find information and tax forms online at the official website of the Alabama Department of Revenue: Alabama LLC
Forming an LLC can be complicated, especially where there is more than one person involved. You should consult an accountant and an attorney before forming your LLC to make sure that an LLC is right for you and that all your paperwork is processed correctly.
This article is for informational purposes and does not constitute legal, financial or tax advice. This information is derived from various sources and should not be relied on as an official source of information. All information should be independently verified. You should consult a legal or accounting professional before incorporating your business.
Disclaimer: This site is for informational purposes only and does not constitute legal, financial or tax advise. The information on this site should not be relied upon as an official source of information and should be independently verified.