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 LLC 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 LLC that is registered in California wants to do business in Alabama.  The California LLC is a "Domestic" LLC in California and will be a "Foreign" LLC in Alabama.

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

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

You want to do business in the state of Alabama but are registered as a LLC 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 LLC.  The process of registering as a Foreign LLC in Alabama is called Alabama LLC Foreign Qualification.

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

Once you have made the decision to Qualify as a Foreign LLC 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.

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

Our detailed Foreign Qualification page may help you understand some of the implications of forming an Alabama Foreign LLC.  However, if there is anything about forming a Foreign LLC 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 LLC in Alabama.

Once you have made the decision to form a Foreign LLC 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 LLC.

All Alabama Foreign Limited Liability Companies are required to Reserve a Company Name prior to submitting an application to form a Foreign LLC in Alabama.

If the Name you have chosen for your new Alabama Foreign LLC is already in use by a currently active Alabama 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 LLC is available before we submit your Foreign LLC 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. Choose a name for your Alabama Foreign LLC
2. File Registration Documents with the Alabama Secretary of State
3. Determine how you want your Alabama Foreign LLC to be taxed

1. Choose a name for your Alabama Foreign LLC
   
   You can use the same name in Alabama that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.  Your Alabama Foreign LLC 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 LLC name that you choose must be distinguishable from the name of any other registered Alabama LLC 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 LLC name must not imply that it was formed for a purpose other than that stated in the Articles of Organization for your Domestic LLC and your Alabama Foreign LLC name must not be a name that is likely to mislead the public.
   
   The name of an Alabama Foreign LLC must include the word "Limited Liability Company" or or the abbreviation "LLC" or "L.L.C.".
   
   It's important to choose a good name for your Alabama Foreign LLC 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 LLC name is available and conforms to all state of Alabama Limited Liability Company naming regulations.
2. File Registration Documents with the Alabama Secretary of State
   
   In order to Qualify as a Foreign LLC in Alabama you must file Registration Documents with the Alabama Secretary of State.  In Alabama the registration documents are named "Certificate of Formation".
   
   The registration documents must include certain specific information about your Alabama business.  If the LLC Registration Documents do not conform exactly to state of Alabama Foreign LLC requirements they will be rejected. 
   
   If you need to change any of the information on your registration documents after your Alabama Foreign LLC has been approved, you may amend the registration documents for your Alabama Foreign LLC but you will have to pay a fee to the state of Alabama in order to make the changes official.
   
   
3. Determine how you want your Alabama Foreign LLC to be taxed
   
   The Alabama Corporate Income Tax Rate is 6.5%.  You may choose that your Alabama Foreign LLC is 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 Corporations. 
   
   You may choose to have your Alabama Foreign LLC 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 form a Single Member Alabama Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Alabama Foreign LLC will be taxed as a Sole Proprietorship.  If you form a Multiple Member Alabama Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Alabama Foreign LLC will be taxed as a Partnership.
   
   Click here for more Alabama Corporate Tax Information .
   If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Alabama Foreign LLC and include it with your final Foreign LLC documents.

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 LLC
3. Keep proper records of your Alabama Foreign LLC 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 LLC doesn't take the place of obtaining a local business license, tax registration certificate, or other required business permits.  An Alabama Foreign LLC 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 LLC 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 LLC 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 LLC 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 LLC 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 LLC
   
   The Alabama Annual Report includes basic information about your Alabama Foreign LLC including information on your business location as well as the names of the Officers and Directors.
   
   Failure to submit a properly completed Alabama Annual Report to the Alabama Secretary of State on or before the due date may subject the Alabama Foreign LLC 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 LLC Annual Report to the Alabama Secretary of State by the due date.
   
   
3. Keep proper records of your Alabama Foreign LLC on file
   
   Keep the following records on file and available at the principal business office of your Alabama Foreign LLC:
   • Names and addresses of all Members and Managers of the Alabama Foreign LLC
   • Foreign LLC formation documents and any Amendments to them
   • Alabama Foreign LLC Operating Agreement and any Amendments to them
   • Copies of any LLC Resolutions which have been adopted by the Alabama Foreign LLC
   • Copies of all tax returns and Annual Reports for the Alabama Foreign LLC for the last 3 years
   
   
4. Pay your taxes to the state of Alabama
   
   Foreign LLCs 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 Form a Foreign LLC in Alabama you'll need the following information about your LLC:

• The name of your new Alabama Foreign LLC along with your second choice of a name in case the name that you want is not available
• Physical address of the Foreign LLC office in Alabama (not a PO Box)
• A description of the nature of the business you are planning to operate with the Alabama Foreign LLC
• When the Alabama Foreign LLC will start and when it will cease to exist (normally the Foreign LLC starts on the date the application is filed and will exist perpetually)

Remember - ALL the information that you provide when you Form a Foreign LLC 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 LLC in Alabama.

Processing times for new Alabama Foreign LLC applications vary depending on the work load of the Secretary of State's staff.  We've found that normal processing of new Alabama Foreign LLC 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 LLC.

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 LLC application. We get your Alabama Foreign LLC application to the AL Secretary of State ASAP. Once it is at the state we have no control over the new Alabama Foreign LLC application process.

The state of Alabama charges $158.00 to Form a Foreign LLC in AL.  If you choose All Business Documents to help you Form your Foreign LLC in Alabama our processing fees are $145.00.  This includes:

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