HOW TO FORM A LLC IN ALABAMA ONLINE
Do I need a lawyer to Form a LLC in Alabama?
explain
The short answer is no.
The state of Alabama does not legally require a lawyer to form an
Alabama Limited Liability Company (LLC).
Our detailed
LLC Information page may help you understand some
of the implications of forming an
Alabama LLC.
However, if there is
anything about
Forming a LLC in Alabama
that you're not sure about you should seek the advice of a competent Alabama lawyer, an Alabama accountant,
or an Alabama Business advisor
before you
form a LLC in Alabama.
Once you have made the decision to
Form a 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
Do I have to Reserve a Company Name before I Form a LLC in Alabama?
explain
You are not legally required to reserve a Company Name for a new Alabama LLC before you submit your application to
Form a LLC in
Alabama.
Whether or not you need to reserve a company name for your new Alabama LLC 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 Company Name.
What if the Alabama LLC Name I want is already taken?
explain
If the Name you have chosen for your new Alabama LLC is already in use by a currently active
Alabama Corporation or LLC, and you still want to use that LLC Name, 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 LLC is available before we submit
your new 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.
What do I have to do to Form a LLC in Alabama?
explain
6 things you have to do in order to Form a LLC in Alabama.
- Choose a name for your Alabama LLC
- Select an official address and a Registered Agent for your Alabama LLC
- Determine who will be Members and who will Manage your Alabama LLC
- Determine how you want your Alabama LLC to be taxed
- File Articles of Organization with the Alabama Secretary of State
- Get a Federal Employer Identification Number (FEIN) for your Alabama LLC
- Choose a name for your Alabama LLC
Your Alabama 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 LLC name that you choose must be distinguishable from the name of any other registered Alabama LLC or other
registered Alabama business entity, such as a Alabama Corporation or LLP.
The LLC name must also be different from any reserved names on record with the state of Alabama.
Your Alabama LLC name must not imply that it was formed for a purpose other than that stated in your
Articles of Organization;
and your Alabama LLC name must not be a name that is likely to mislead the public.
The name of an Alabama LLC must include the word "LLC" or
"Limited Liability Company" or an abbreviation of one of these words.
It's important to choose a good name for your Alabama LLC because if you want to change it after you
Form a LLC in Alabama you
will have to file amended Articles of Organization with the Alabama Secretary of State (and pay a fee). We will:
- Check to make sure that your Alabama LLC name is available
- Make sure your Alabama LLC name conforms to state of Alabama regulations
- Reserve your Alabama LLC name with the Alabama Secretary of State
- Select an official address and a Registered Agent for your Alabama LLC
Every Alabama LLC 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 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
LLC is called a "Registered Agent" or "Agent for Service of Process".
You may act as your own Registered Agent, however, many Alabama LLCs 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 can act as the official Registered Agent for your Alabama LLC.
- Determine who will be Members and who will Manage your Alabama LLC
The owners of an Alabama LLC are called Members - not Partners or Shareholders.
(a Alabama Limited Liability Company does not issue stock).
Members make all business decisions and realize the financial benefits generated by the Alabama LLC.
Division of ownership and distribution of profits are decided by private agreement among the Members.
Each Alabama LLC must have at least one Member.
Members need not live in the state of Alabama or be citizens of the United States.
Managers are responsible for the day to day operation of the Alabama LLC.
Members elect or appoint Managers and have the power to remove them.
Managers may or may not be Members of the Alabama LLC.
Management for your Alabama LLC may be defined in your Articles of Organization or, more commonly, in an Operating Agreement.
- Determine how you want your Alabama LLC to be taxed
The IRS does not recognize a Limited Liability Company as a classification for federal tax purposes.
Alabama LLC Members can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation.
This decision may be made after the Alabama LLC is created.
If a single Member Alabama LLC does not declare a tax classification it is taxed the same as a sole
proprietorship.
A multiple Member Alabama LLC that does not declare a tax classification is taxed as a general partnership.
More specific federal LLC tax information can be found at the
IRS web site.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Alabama LLC and include it with
your LLC formation documents.
- File Articles of Organization with the Alabama Secretary of State
An Alabama Limited Liability Company is a type of business that is authorized by the state of Alabama - not by the federal government.
In order to form a LLC in Alabama you must file Articles of Organization with the Alabama Secretary of State.
The Articles of Organization must include certain specific information about your Alabama LLC.
If the Articles do not conform exactly to state of Alabama requirements they will be rejected. 
You may subsequently amend the Articles of Organization for your Alabama LLC but you will have to pay a fee to the state of
Alabama in order to make the changes official.
We can prepare and file your Articles of Organization with the Alabama Secretary of State.
We've been doing it for over 10 years.
- Get a Federal Employer Identification Number (FEIN) for your Alabama LLC
A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a
business entity.
An FEIN is like a Social Security Number for your Alabama LLC.
All Alabama LLCs electing to be taxed as a C-Corporation or S-Corporation are required to have a FEIN.
If you do not elect to have your Alabama LLC taxed as a Corporation you may still need to get a FEIN if it is composed of multiple members or
if you plan to have employees.
If you plan to form a Single Member Alabama LLC you may not need a separate FEIN for the LLC if you have no employees.
The sole Member of a Single Member Alabama LLC may be able to use his or her Social Security Number instead of applying for an FEIN.
You may request a FEIN for your Alabama LLC for banking or state tax purposes, but an FEIN may not be required for federal tax purposes depending
on your business circumstances.
We can get a FEIN for your Alabama LLC as soon as it is approved by the Alabama Secretary of State.
What do I have to do after I form my Alabama LLC?
explain
5 things you have to do after you Form a LLC in Alabama.
- Conduct an Organizational Meeting and adopt an Operating Agreement
- Open a Business Bank Account in Alabama for your AL LLC
- Obtain Business Licenses from the cities and counties in which you plan to do business
- File the required Alabama LLC reports
- Keep proper records of your Alabama LLC on file
- Conduct an Organizational Meeting and adopt an Operating Agreement
An Operating Agreement defines the rules by which your Alabama LLC will operate.
It is the core document that is referred to when issues concerning your LLC need to be resolved.
Operating Agreements may include requirements for almost anything that involves the management and operation of your Alabama LLC.
By having an Operating Agreement all Members will be provided with a clear set of rules they have agreed upon thus reducing the likelihood of
disagreement in the future.
Items commonly included in an Operating Agreement for an Alabama LLC:
- Rights and duties of Members
- Member contributions
- Record keeping and reporting requirements
- Distribution of profits
- Allocation of losses
- Management duties
- Meeting requirements
- Voting requirements
- Admission and termination of Members
- Dissolution procedures
Although an Operating Agreement is not required in the state of Alabama, if you plan to form a multiple Member Alabama LLC
it is highly advisable to have one.
Having an Operating Agreement will save you a lot of time and money should conflict arise down the line.
As your Alabama LLC grows over time, you may amend your Operating Agreement as necessary.
When your Alabama LLC has an Operating Agreement your business will be governed by your own rules and not some canned business rules created by
the state of Alabama.
- Open a Business Bank Account in Alabama
It's very important that you have a separate business bank account for your Alabama LLC.
Mixing personal and business funds may get you in a lot of trouble with the tax man down the line.
It's a good idea to contact the bank before you open a business bank account for your Alabama Limited Liability Company.
Specific requirements vary from bank to bank.
In most cases you will need a FEIN, a copy of your Alabama LLC Articles of Organization, and a resolution identifying authorized signers
if those names are not listed in the Articles.
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming an Alabama LLC doesn't take the place of obtaining a business license, tax
registration certificate, or other required business permits.
An Alabama LLC merely creates an ownership structure that limits the owner's 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 LLC you may need to get one or more city
business licenses or permits.
The business licenses or permits that are required for your Alabama 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 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 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 can research and prepare the necessary forms for your required business licenses and permits and include them in your Alabama LLC package.
- File the required Alabama LLC reports
Each Alabama LLC must file a with the Alabama Secretary of State.
The Alabama includes basic information about your Alabama LLC.
Failure to submit a properly completed Alabama to the Alabama Secretary of State on or before the
due date may subject the Alabama 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 LLC to the Alabama Secretary of State
by the due date.
- Keep proper records of your Alabama LLC on file
Keep the following records on file and available at the principal business office of your Alabama LLC:
- Names and addresses of all Members and Managers of the Alabama LLC
- Articles of Organization for the Alabama LLC and any Amendments to them
- Copies of all tax returns and reports for the Alabama LLC for the last 3 years
- If the Alabama LLC has an Operating Agreement, a copy of the Operating Agreement and any Amendments
- Copies of any LLC Resolutions which have been adopted by the Alabama LLC
What information do I need in order to Form a LLC in Alabama?
explain
In order to Form a LLC in Alabama you'll need the following information about your new Company:
- The name of your new Alabama LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the LLC office in Alabama (not a PO Box)
- Name and address of your Alabama Registered Agent (not a PO Box)
- The number of Managers of your Alabama LLC
- Names and addresses of each Manager of your Alabama LLC
- When your Alabama LLC will start and when it will cease to exist (normally the LLC starts on the date the application is filed and will exist perpetually)
You do not have to name the Members of a
Alabama LLC in the Articles of Organization.
While you are not required to name the Members of a new Alabama LLC you still may include Member information with your initial
Alabama LLC filing.
Remember -
ALL the information that you provide when you Form a 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 Limited Liability Company in Alabama.
How long does it take to Form a LLC in Alabama?
explain
Processing times for new Alabama LLC applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Alabama takes the state around 2 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 Alabama LLC.
PLEASE NOTE: WE CANNOT GUARANTEE ALABAMA SECRETARY OF STATE PROCESSING TIMES.
We are dependent on, and have no control over, the staff and systems of the Alabama Secretary of State.
In our experience 2 business days is the time it
usually takes the Alabama Secretary of State to process
a new Alabama LLC application.
We get your Alabama LLC application to the AL Secretary of State ASAP. Once it is at the state we have no control over the new Alabama LLC application process.
How much does it cost to Form a LLC in Alabama?
explain
The state of Alabama charges $254.00 to form a new LLC.
This is the cost of filing and getting a Certified Copy of your Articles of Organization from the AL Secretary of State.
If you choose All Business Documents to help you form your LLC in Alabama, our processing fees are $125.00.
We start processing your new Alabama LLC order as soon as we get it.
Total cost includes:
- Name Check and Reservation
- Prepare Articles of Organization
- File Articles of Organization with the Alabama Secretary of State
- Certified Copies of Articles
- Alabama LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
Alabama Foreign LLC Qualification
explain
You want to do business in the state of Alabama but are registered as a Domestic LLC in another state.
In order to legally conduct business in the state of Alabama you must register with the Alabama as
an Alabama Foreign LLC.
The process of registering as a Foreign LLC in the state of 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 the state of Alabama.
Your original formation documents (usually called Articles of Organization) and LLC Operating Agreement apply to your Alabama Foreign LLC.
The Members and Managers of your Domestic LLC have the same roles in the Alabama Foreign LLC.
ALABAMA ONLINE LLC COST ESTIMATOR
Our AL LLC Processing Services include:
(These services are included in our processing fees)
Optional Alabama LLC Services
(Choose options, cost is updated automatically)
-
Expedited Service - $100
explain
Normal processing time for a new Alabama LLC is 2 business days.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut the document delivery time in half.
- Express Mail - $35
explain
If you really need your original approved Articles of Organization in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Alabama Secretary of State's processing time. For the quickest turn-around time also choose the Expedited Service option.
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S-Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Alabama Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your Incorporation documents.
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AL Registered Agent - $135
explain
Every Alabama LLC is required to have an address within the state of Alabama 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 LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many LLCs hire a Registered Agent because they don't have a physical address within
Alabama or to provide a distinct level of privacy.
We can act as your Alabama LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your AL Registered Agent services.
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Customized Operating Agreement - $75
explain
An Operating Agreement defines the rules by which an Alabama LLC must operate.
Operating Agreements may include requirements for profit sharing, ownership responsibilities and almost anything else that
involves the management and operation of the Alabama LLC.
Although an Operating Agreement is not required in the state of Alabama, it is highly advisable to have one for your Alabama LLC.
As your Alabama LLC grows over time, you may amend your Operating Agreement as necessary.
You do NOT file an Operating Agreement with the Alabama Secretary of State. It should be stored in a secure location along with your other LLC documents.
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AL Good Standing Certificate - $61
explain
An Alabama Good Standing Certficate is proof of the existence of your new Alabama LLC.
The Certificate is issued by the Alabama Secretary of State and is proof that your AL LLC is not behind on any
of its Alabama Secretary of State Corporate obligations.
An Alabama Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Alabama or in any other state.
We can get your Alabama Good Standing Certificate immediately after the Alabama Secretary of State has approved your Articles of Organization.
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Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Alabama LLC.
We can get your FEIN on the same day that your Articles of Organization are approved by the Alabama Secretary of State.
You can get your FEIN before your articles are approved by the Alabama Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
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LLC Kit and Seal - $99
explain
While you're not required to have a LLC Kit and Seal for your new Alabama LLC they do come in handy.
The AL LLC Kit consists of a beautiful customized binder, member certificates, a member ledger
and your custom LLC Seal.
The LLC Seal is used to emboss important company documents, such as member certificates.
The binder also includes dividers so you can use it for all of your Alabama LLC record keeping.
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Business License Research - $175
explain
Most new Alabama LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.