HOW TO INCORPORATE IN ALABAMA ONLINE
Do I need a lawyer to Incorporate in Alabama?
explain
The short answer is no.
The state of Alabama does not legally require a lawyer to form an
Alabama Corporation.
Our detailed
Incorporation Information page may help you understand some
of the implications of forming an
Alabama Corporation.
However, if there is
anything about
Incorporating 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
Incorporate in Alabama.
Once you have made the decision to
Incorporate 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 Corporation.
Do I have to Reserve a Company Name before I Incorporate in Alabama?
explain
All Alabama Corporations are required to Reserve a Company Name prior to submitting an application to Incorporate in Alabama.
What if the Alabama Corporation Name I want is already taken?
explain
If the Name you have chosen for your new Alabama Corporation is already in use by a currently active
Alabama Corporation or LLC, and you still want to use that Corporation 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 Corporation is available
before we submit
your Incorporation 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 Incorporate in Alabama?
explain
8 things you have to do in order to Form a LLC in Alabama.
- Choose a name for your Alabama Corporation
- Select an official address and a Registered Agent for your Alabama Corporation
- Choose a Board of Directors for your Alabama Corporation
- Decide who will be Officers for your Alabama Corporation
- Determine how you want your Alabama Corporation to be taxed
- File Articles of Incorporation with the Alabama Secretary of State
- Get a Federal Employer Identification Number (FEIN) for your Alabama Corporation
- Issue Stock Certificates to the Initial Shareholders
- Choose a name for your Alabama Corporation
Your Alabama 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 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 Corporation name must not imply that it was formed for a purpose other than that stated in your
Articles of Incorporation;
and your Alabama Corporation name must not be a name that is likely to mislead the public.
The name of an Alabama Corporation must include the word "Corporation" or
"Incorporated" or an abbreviation of one of these words.
It's important to choose a good name for your Alabama Corporation because if you want to change it after you incorporate you
will have to file amended Articles of Incorporation with the Alabama Secretary of State (and pay a fee). We will:
- Check to make sure that your Alabama Corporation name is available
- Make sure your Alabama Corporation name conforms to state of Alabama regulations
- Reserve your Alabama Corporation name with the Alabama Secretary of State
- Select an official address and a Registered Agent for your Alabama Corporation
Every Alabama 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 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
Corporation is called a "Registered Agent".
You may act as your own Registered Agent, however, many Alabama 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 can act as the official Registered Agent for your Alabama Corporation.
- Choose a Board of Directors for your Alabama Corporation
All Alabama Corporations are required to have a Board of Directors.
Directors are the people who will set policies for your Alabama Corporation and manage the business and its resources.
In the majority of small corporations directors are the owners.
The Articles of Incorporation or Corporate Bylaws may define specific qualifications for Directors.
The Board of Directors is responsible for creating rules, approving budgets and distributing profits to shareholders.
One of the most important duties of the Board of Directors is electing Officers for your Alabama Corporation.
The same person may be a Director and an Officer at the same time.
Directors need not be residents of the state of Alabama or shareholders of the Alabama Corporation unless the Articles of Incorporation
or Bylaws require it.
Normally Directors for your Alabama Corporation are elected for a term of one year.
Elections are held at the annual meeting of Shareholders.
The Directors serve until the next annual Shareholders meeting.
- Decide who will be Officers for your Alabama Corporation
The Board of Directors elects Officers for your Alabama Corporation in accordance with the Corporate Bylaws and Articles of Incorporation.
Officers serve at the pleasure of the Board of Directors of the Alabama Corporation.
Officers handle the day to day operation of the Alabama Corporation.
Unless specifically prohibited by the Corporate Bylaws or Articles of Incorporation, in a Alabama Corporation
the same person may hold more than one Corporate Office at the same time.
However, there are certain legal affairs in which the same person cannot act in more than one capacity.
One Officer - usually the Secretary - is given responsibility for preparing Minutes of Directors and Shareholders meetings
and for authenticating records for the Alabama Corporation.
- Determine how you want your Alabama Corporation to be taxed
The Alabama Corporate Income Tax Rate is 6.5%.
You may form an S Corporation in Alabama.
S Corporations may "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.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Alabama Corporation and include it with
your Incorporation documents.
Click here for more
Alabama Corporate Tax Information
- File Articles of Incorporation with the Alabama Secretary of State
In order to form a Corporation in Alabama you must file Articles of Incorporation with the Alabama Secretary of State.
The Articles of Incorporation must include certain specific information about your Alabama business. If the Articles do not conform exactly to state of Alabama requirements they will be rejected.
You may subsequently amend the Articles of Incorporation for your Alabama Corporation but you will have to pay a fee to the state of
Alabama in order to make the changes official.
- Get a Federal Employer Identification Number (FEIN)
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 Corporation.
All Alabama Corporations are required to have an FEIN.
We can obtain an FEIN for your Alabama Corporation.
- Issue Stock Certificates to the Initial Shareholders
Corporate stock is evidence of ownership of a Alabama Corporation.
When you form your Alabama Corporation, you will need to determine what type of stock and the number of shares of each type that
you want to authorize.
You do not have to sell the number of shares that are authorized.
Many small Alabama Corporations hold 100% of the shares.
Stockholders in a Alabama Corporation are entitled to voting rights or dividends of the Corporate profits or both.
Whoever owns over 50% of the stock of the Alabama Corporation is able to make all Corporate business decisions.
Alabama Corporations usually hold at least 51% of the corporate stock in order to retain control of the Alabama Corporation.
What do I have to do after I form my Alabama Corporation?
explain
6 things you have to do after you Form a LLC in Alabama.
- Conduct an initial Meeting of the Board of Directors and adopt Corporate Bylaws
- Open a Business Bank Account in Alabama for your AL Corporation
- Obtain Business Licenses from the cities and counties in which you plan to do business
- Hold Meetings of Shareholders and Directors of EACH year
- File the required Alabama Professional Corporation reports
- Keep proper records of your Alabama Professional Corporation on file
- Conduct an initial Meeting of the Board of Directors and adopt Corporate Bylaws
The Board of Directors holds an initial meeting to elect Officers, authorize issuance of stock and adopt the Corporate Bylaws.
Bylaws are the internal rules of your Alabama Corporation.
They are adopted by the Board of Directors and vary widely from Corporation to Corporation.
Commonly bylaws include the number of seats on the board of directors; how Directors are elected; how meetings of Directors and
Shareholders are to be conducted; what Officers the Alabama Corporation will have and a description of each of their duties.
As your company grows over time, you may amend your bylaws as necessary.
Bylaws generally cannot be amended by the Board of Directors unilaterally.
A vote by the majority of Stockholders of the Alabama Corporation is usually required to amend the Corporate Bylaws.
Bylaws may include any rules for managing the business and conducting corporate affairs.
Almost anything may be written into the Bylaws, however, the Bylaws must not be in violation of any federal or Alabama law or
the Alabama Corporation's Articles of Incorporation.
A copy of the Corporate Bylaws should be maintained at the Corporation's principal Alabama office.
- Open a Business Bank Account in Alabama
It's very important that you have a separate business bank account for your Alabama Corporation.
Mixing personal and business funds can 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.
Specific requirements vary from bank to bank.
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming an Alabama Corporation doesn't take the place of obtaining a business license, tax
registration certificate, or other required business permits.
An Alabama 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 Corporation you may need to get one or more city
business licenses or permits.
The business licenses or permits that are required for your Alabama 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 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 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 can research and prepare the necessary forms for your required business licenses and permits and include
them in your Alabama Incorporation package.
- Hold Meetings of Shareholders and Directors of each year
Every Alabama Corporation must hold corporate and shareholder meetings, at least annually, and must keep minutes of each meeting
on file.
A copy of the minutes is evidence that the meetings took place and includes all resolutions that were adopted.
The minutes of each meetings must be open for inspection by any Shareholder or Director.
This meeting requirement is often overlooked and comes into play when the Alabama Corporation is challenged for any reason.
Keeping proper meeting minutes and documenting resolutions made and approved by the Directors is a formality that could save your
Alabama Corporation a lot of potential trouble.
We can transcribe the minutes of any meeting of your Alabama Corporation into a form that complies with all
state of Alabama requirements.
- File the required Alabama Professional Corporation reports
Every new Alabama Corporation is required to file an Initial Business Privilege Tax Return with the Alabama Department of Revenue within 2 1/2 months after the Articles of Incorporation of the new Alabama Corporation were initially approved by the Alabama Secretary of State.
The new Alabama Corporation must pay any taxes which are due to the Alabama Department of Revenue at the same time that the new Alabama Corporation files its Initial Business Privilege Tax Return with the Alabama Department of Revenue.
Every Alabama Corporation is required to file a Business Privilege Tax Return with the Alabama Department of Revenue EACH year.
The Alabama Corporation Business Privilege Tax Return is due at the Alabama Secretary of State EACH year at the same time that the Alabama Corporation files its tax return.
For Alabama Corporations the Alabama Corporation Business Privilege Tax Return and Annual Report is due at the Alabama Secretary of State EACH year 2 1/2 months after the end of the fiscal year of the Alabama Corporation.
All Foreign and Domestic Corporations registered in Alabama must file an annual report with the AL Secretary of State by March 15. Corporations will also need to file a Business Privilege Tax Return with the AL Department of Revenue, by April 15 EACH YEAR.
If an Alabama Corporation does not file its Business Privilege Tax Return with the AL Department of Revenue by the due date then that Alabama Corporation will be subject to late filing penalties imposed by the Alabama Department of Revenue.
The Alabama Professional Corporation Business Privilege Tax Return and Annual Report includes basic information about your Alabama Professional Corporation including
information on your Directors and Officers.
Failure to submit a properly completed Alabama Business Privilege Tax Return and Annual Report to the Alabama Secretary of State on or before the
due date may subject your Alabama Professional 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.
In addition,
penalties may accrue if you fail to file any Alabama Professional Corporation Business Privilege Tax Return and Annual Report to the Alabama Secretary of State
by the due date.
- Keep proper records of your Alabama Corporation on file
Keep the following records on file and available at the principal business office of your Alabama Corporation:
- Names and addresses of all Directors and Officers of the Alabama Corporation
- Articles of Incorporation for the Alabama Corporation and any Amendments to them
- Corporate Bylaws for the Alabama Corporation and any Amendments to them
- List of current shareholders of the Alabama 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 Corporation
- Copies of all tax returns and Annual Reports for the Alabama Corporation for the last 3 years
What information do I need in order to Incorporate in Alabama?
explain
In order to Incorporate in Alabama you'll need the following information about your new Company:
- The name of your new Alabama Corporation along with your second choice of a name in case the name that you want is not available
- Physical address of the Corporation office in Alabama (not a PO Box)
- Name and address of your Alabama Registered Agent (not a PO Box)
- A description of the nature of the business you are planning to operate with the Alabama Corporation
- When the Alabama Corporation will start and when it will cease to exist (normally the Corporation starts on the date the application is filed and will exist perpetually)
- Names and addresses of the initial Directors of the Alabama Corporation
- The number of shares of stock that the Alabama Corporation will be authorized to issue
- The par value of the shares which the Alabama Corporation will be authorized to issue
Remember -
ALL the information that you provide when you Incorporate 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 Corporation in Alabama.
How long does it take to Incorporate in Alabama?
explain
Processing times for new Alabama Corporation applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Alabama Articles of Incorporation 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 Corporation application.
We get your Alabama Corporation application to the AL Secretary of State ASAP.
Once it is at the state we have no control over the new Alabama Corporation application process.
Are there any Expedited Processing Options for new AL Corporation Filings?
explain
In Alabama you file a Certificate of Formation with the office of the Probate Judge in the Alabama county in which the Corporation's initial registered office is located. The Probate Judge then sends the filing to the Alabama Secretary of State for indexing. For an extra $100 the Alabama Secretary of State will index a filing within three business days after they receive the application from the county Probate Judge. The $100 is an Alabama Secretary of State fee. Some county Probate Judge offices may or may not offer expedited processing.
How much does it cost to Incorporate in Alabama?
explain
The state of Alabama charges $254.00 to Incorporate in AL.
This is the cost of filing and getting a Certified Copy of your Articles of Incorporation from the AL Secretary of State.
If you choose All Business Documents to help you Incorporate in Alabama our processing fees are $125.00.
We start processing your new Alabama Corporation order as soon as we get it.
Total cost includes:
- AL Name Check and Reservation
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Alabama Secretary of State
- Certified Copies of Articles
- Alabama Corporation Checklist
- Priority Mail Delivery
- Unlimited Customer Support
What is a Alabama Professional Corporation?
explain
Generally, if you are required to obtain some kind of license before you can market your skills in the state of Alabama then you will
most likely need to form a
Alabama Professional Corporation.
Attorneys, architects, engineers, public accountants, nurses and physicians, among others, may require registration as a Professional
Corporation with the Alabama Secretary of State.
Depending on exactly what it is that you want to do in Alabama, approval from a specific Alabama state agency or board may be required before the AL Secretary of State will approve a new
Alabama Professional Corporation filing.
This could add to the total processing time for a new Alabama Corporation.
What is Alabama Foreign Corporation Qualification?
explain
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
an Alabama Foreign Corporation.
The process of registering as a Foreign Corporation in the state of 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 the state of Alabama.
Your original formation documents (usually called Articles of Incorporation) and Corporate Bylaws apply to your Alabama Foreign Corporation.
The Board of Directors and Officers of your Domestic Corporation have the same roles in the Alabama Foreign Corporation.
ALABAMA ONLINE INCORPORATION COST ESTIMATOR
Our AL Incorporation Processing Services include:
(These services are included in our processing fees)
Optional Alabama Incorporation Services
(Choose options, cost is updated automatically)
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Expedited Service explain
Normal processing time for a new Alabama Corporation is 2 business days.
In Alabama you file a Certificate of Formation with the office of the Probate Judge in the Alabama county in which the Corporation's initial registered office is located. The Probate Judge then sends the filing to the Alabama Secretary of State for indexing. For an extra $100 the Alabama Secretary of State will index a filing within three business days after they receive the application from the county Probate Judge. The $100 is an Alabama Secretary of State fee. Some county Probate Judge offices may or may not offer expedited processing.
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.
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- Express Mail - $35
explain
If you really need your original approved Articles of Incorporation 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 Corporation 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 Corporation is called a Registered Agent.
You may act as your own Registered Agent, however, many Corporations 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 Corporation 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 Bylaws - $75
explain
Bylaws are the rules by which your Alabama Corporation must operate.
Every new Alabama Corporation requires bylaws.
Almost anything may be written into the bylaws, however, the bylaws must not be in violation of any law or
your Alabama Corporation's Articles of Incorporation.
We can create customized initial bylaws for your Alabama Corporation that are based on your specific business requirements.
As your company grows over time, you may amend your bylaws as necessary.
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AL Good Standing Certificate - $61
explain
An Alabama Good Standing Certficate is proof of the existence of your new Alabama Corporation.
The Certificate is issued by the Alabama Secretary of State and is proof that your AL Corporation 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 Incorporation.
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Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Alabama Corporation.
We can get your FEIN on the same day that your Articles of Incorporation 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 Corporation 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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Corporation Kit and Seal - $99
explain
While you're not required to have a Corporation Kit and Seal for your new Alabama Corporation they do come in handy.
The AL Corporation Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Corporation Seal.
The Corporation Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Alabama Corporation record keeping.
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Business License Research - $175
explain
Most new Alabama Corporations 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.