You want to do business in the state of Alabama but are registered as a Domestic Corporation in another state.  In order to legally conduct business in the state of Alabama you must register with the Alabama Secretary of State as a Foreign Corporation.  The process of registering as a Foreign Corporation in Alabama is called Alabama Corporation Foreign Qualification.

The process of Alabama Corporation Foreign Qualification is similar to the process of forming a Domestic Corporation in Alabama.  Your original Domestic Corporation formation documents (usually called Articles of Incorporation) and By Laws apply to your Alabama Foreign Corporation.  The Officers and Directors of your Domestic Corporation have the same roles in the Alabama Foreign Corporation.  Specific requirements to qualify as a Foreign Corporation in Alabama are explained below. 

Once you have made the decision to Qualify as a Foreign Corporation in Alabama, an Alabama lawyer can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents to perform these services.

In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.  If you want to transact any serious business in a state other than the state in which your Corporation is registered, most likely you will have to register with the state in which you want to do business before you can legally conduct business there. 

For example, a Corporation that is registered in California wants to do business in Alabama.  The California Corporation is a "Domestic" Corporation in California and will be a "Foreign" Corporation in Alabama.

The California Foreign Corporation needs to register with the Alabama Secretary of State as an Alabama Foreign Corporation.

The use of the term Foreign in this case refers specifically to individual US states.  The US government, including the IRS, considers a Foreign Corporation to be a Corporation that is registered outside of the United States.

The short answer is no.  The state of Alabama does not legally require a lawyer to form an Alabama Foreign Corporation.

Our detailed Foreign Corporation Information page may help you understand some of the implications of forming an Alabama Foreign Corporation.  However, if there is anything about forming a Foreign Corporation in Alabama that you're not sure about you should seek the advice of a competent Alabama lawyer, an Alabama accountant, or both before you form a Foreign Corporation in Alabama.

Once you have made the decision to form a Foreign Corporation in Alabama, an Alabama lawyer can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents to perform these services and save money that you can use in your new Alabama Foreign Corporation.

You are not legally required to reserve a Company Name for a new Alabama Foreign Corporation before you submit your application to Form a Foreign Corporation in Alabama.

The Foreign Corporation name that you have registered in your home state may or may not be available in Alabama.  In that case you need a different name your Alabama Foreign Corporation.  Whether or not you need to reserve a company name for your new Alabama Foreign Corporation depends entirely on your business situation.  The Alabama Secretary of State uses names on a first come first served basis.  So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Alabama Foreign Corporation Name.

If the Name you have chosen for your new Alabama Foreign Corporation is already in use by a currently active Alabama Foreign Corporation or LLC then you will have to register a DBA Name with the Alabama Secretary of State.  "DBA" is an abbreviation for "Doing Business As."

In Alabama a DBA Name is called a Trade Name.

We verify that the Name you have chose for your new Alabama Foreign Corporation is available before we submit your Foreign Corporation filing to the Alabama Secretary of State.  If necessary we can register a Trade Name in Alabama for you so that you can open your new Alabama business as quickly as possible.

1. Prove that you are registered in a state other than Alabama as a Domestic Corporation
   In order to register as a Foreign Corporation in the state of Alabama, you must first prove that you are registered in another state as a Domestic Corporation.  The state of Alabama requires a certified copy of the formation documents from the home state of the Domestic Corporation.  These documents are usually called Articles of Incorporation.  If the formation documents have been amended then the Alabama Secretary of State also requires certified copy of all amendments.
   We can get Certified Copies of your formation documents, as well as any other documents which have been filed, in any state.
2. Choose a name for your Alabama Foreign Corporation
   You can use the same name in Alabama that you use in your home state, however, if the name of your Domestic Corporation is not available you need to choose another name.  Your Alabama Foreign Corporation name can identify the type of products and services your business will provide; or it may be the name of the founder; or it can be a combination of the two or something else.
   
   In any case, the Alabama Foreign Corporation name that you choose must be distinguishable from the name of any other registered Alabama Corporation or other business entity and the name must also be different from any reserved names on record with the state of Alabama.  Your Alabama Foreign Corporation name must not imply that it was formed for a purpose other than that stated in the Your Alabama Foreign Corporation name must not be a name that is likely to mislead the public.
   
   The name of an Alabama Foreign Corporation must include the word "Foreign Corporation" or "Incorporated" or an abbreviation of one of these words.
   
   It's important to choose a good name for your Alabama Foreign Corporation because if you want to change it after you qualify you will have to file amended documents with the Alabama Secretary of State (and pay a fee).
   We will check to make sure that your requested Alabama Foreign Corporation name is available and conforms to all state of Alabama Foreign Corporation naming regulations.
3. Select an official address and a Registered Agent for your Alabama Foreign Corporation
   Every Alabama Foreign Corporation must have an address that is physically located in the state of Alabama.  This address is "registered" with the Alabama Secretary of State.  The Registered Address cannot be a PO Box and is where official and legal correspondence can be delivered.
   
   The individual or company that is registered with the state of Alabama to receive all correspondence on behalf of the Alabama Foreign Corporation is called a "Registered Agent".  You may act as your own Registered Agent, however, many Alabama Foreign Corporations hire a Registered Agent because they don't have a physical address within the state of Alabama or to provide a distinct level of privacy.
   We provide Registered Agent services in Alabama as well as all other states and the District of Columbia.
4. File Registration Documents with the Alabama Secretary of State
   In order to Qualify as a Foreign Corporation in Alabama you must file Registration Documents with the Alabama Secretary of State.  In Alabama the registration documents are named "Foreign Corporation Application for Registration".
   
   The registration documents must include certain specific information about your Alabama business.  If the Registration Documents do not conform exactly to state of Alabama requirements they will be rejected. 
   
   If you need to change any of the information on your registration documents after your Alabama Foreign Corporation has been approved, you may amend the registration documents for your Alabama Foreign Corporation but you will have to pay a fee to the state of Alabama in order to make the changes official.
   
   
5. Determine how you want your Alabama Foreign Corporation to be taxed
   The Alabama Corporate Income Tax Rate is %.  You may choose that your Alabama Foreign Corporation to be taxed as a C Corporation or S Corporation. 
   
   A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.  C Corporations pay a Corporate income tax to the state if that state taxes Foreign Corporations. 
   
   You may choose to have your Alabama Foreign Corporation taxed as a S Corporation.  S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.  S Corporations do not pay any Alabama Corporate Income Tax.
   
   Both Alabama C Corporations and S Corporations are not required to pay a minimum Alabama Corporate Income Tax.
   If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Alabama Foreign Corporation and include it with your final Foreign Corporation documents package.

1. Obtain Business Licenses from the cities and counties in which you plan to do business
2. File the required reports for your Alabama Foreign Corporation
3. Keep proper records of your Alabama Foreign Corporation on file
4. Pay your taxes to the state of Alabama

1. Obtain Business Licenses from the cities and counties in which you plan to do business
   Note that forming an Alabama Foreign Corporation does not take the place of obtaining a local business license, tax registration certificate, or other required business permits.  An Alabama Foreign Corporation merely creates an ownership structure that limits the owners' personal liability.  You may still need to take care of getting set up to do business with your local government.
   
   Depending on the nature of the business and the location of your Alabama Foreign Corporation within Alabama you may need to get one or more local business licenses or permits.  The business licenses or permits that are required for your Alabama Foreign Corporation vary depending on your business activities and the specific locations within the state of Alabama in which you want to conduct business.
   
   If your Alabama Foreign Corporation will be selling products in Alabama you may be required to obtain a Reseller's Permit from the appropriate Alabama state agency.  If your Alabama Foreign Corporation will be selling products in Alabama you will also be responsible for all applicable local and state of Alabama sales taxes if there are any.
   We have the expertise to find out exactly which state and local permits that you need for your specific business.
2. File the required reports for your Alabama Foreign Corporation
   The Alabama Corporation Annual Report includes basic information about your Alabama Foreign Corporation including information on your Officers and Directors.
   
   Failure to submit a properly completed Alabama to the Alabama Secretary of State on or before the due date may subject the Alabama Foreign Corporation to being administratively dissolved in the state of Alabama or having its authority to transact business in the state of Alabama revoked by the Alabama Secretary of State.
   
   Penalties may accrue if you fail to file any Alabama Foreign Corporation to the Alabama Secretary of State by the due date.
   
   
3. Keep proper records of your Alabama Foreign Corporation on file
   Keep the following records on file and available at the principal business office of your Alabama Foreign Corporation:
   • Names and addresses of all Directors and Officers of the Alabama Foreign Corporation
   • Foreign Corporation formation documents and any Amendments to them
   • Corporate Bylaws and any Amendments to them
   • List of current shareholders of the Foreign Alabama Foreign Corporation.  If shareholders change, keep a record of old shareholders and how stock was transferred.
   • Minutes of all Meetings of Shareholders and Directors
   • Copies of any Corporate Resolutions which have been adopted by the Alabama Foreign Corporation
   • Copies of all tax returns and Annual Reports for the Alabama Foreign Corporation for the last 3 years
   
   
   
4. Pay your taxes to the state of Alabama
   Foreign Corporations that either do business in the state of Alabama or that derive income from sources within the state of Alabama are subject to Alabama and federal tax laws.  If you are engaged in intrastate business and derive income from other states besides Alabama, you must allocate the amount of income derived from the state of Alabama in order to determine your Alabama state taxes.

In order to Incorporate in Alabama you'll need the following information about your new Company:

• The name of your new Alabama Foreign Corporation along with your second choice of a name in case the name that you want is not available
  
• Physical address of the Foreign Corporation office in Alabama (not a PO Box)
  
• A certified copy of your formation documents from your home state including any amendments to them
• A description of the nature of the business you are planning to operate with the Alabama Foreign Corporation
• When the Alabama Foreign Corporation will start and when it will cease to exist (normally the Foreign Corporation starts on the date the application is filed and will exist perpetually)
• Names and addresses of the initial Directors of the Alabama Foreign Corporation

Remember - ALL the information that you provide when you Form a Foreign Corporation in Alabama becomes part of the public record.  Our data entry forms include the absolute minimum amount of information that is required in order to Form a new Foreign Corporation in Alabama.

Processing times for new Alabama Foreign Corporation applications vary depending on the work load of the Secretary of State's staff.  We've found that normal processing of new Alabama Foreign Corporation applications takes the state around 15-20 business days.  Add 2-3 days for the time period for shipping the final documents by mail.  Choosing our Express Mail option can shave a couple of days off the total processing time for your new Alabama Foreign Corporation.

The Alabama Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or equipment malfunction.  We are dependent on, and have no control over, the staff and systems of the Alabama Secretary of State.

In our experience 15-20 business days is the time it usually takes the Alabama Secretary of State to process a new Alabama Foreign Corporation application. We get your Alabama Foreign Corporation application to the AL Secretary of State ASAP. Once it is at the state we have no control over the new Alabama Foreign Corporation application process. Also, please note that the Alabama Secretary of State requires a Certified Copy of the Articles of Incorporation from the home, or domestic, state to be submitted with the application for an Alabama Foreign Corporation Qualification. Depending on the home state it could take 5 business days or more to obtain the Certified Copy of the Articles of Incorporation from the Secretary of State in the home state.

The state of Alabama charges $158.00 to Form a Foreign Corporation in AL.  Also add the cost of a Certified Copy of your Articles of Incorporation from your home state.   If you choose us to help you Form your Foreign Corporation in Alabama our processing fees are $145.00.  This includes:

• Same day processing of your new Alabama Foreign Corporation order
• AL Name Check and Reservation
• Prepare Foreign Corporation Application for Registration
• File Formation Documents with the Alabama Secretary of State
• Certified Copies of Formation Documents
• Alabama Foreign Corporation Checklist
• Priority Mail Delivery
• Unlimited Customer Support