Filing An Alabama LLC
When starting a business in Alabama, there are multiple types of options from which you can choose. Entrepreneurs should strongly consider picking the LLC structure. LLCs are easy to start and provide members protection from liability. New business owners should know that Alabama is unique in that they must send a certificate of formation to the specific county in which they intend to register.
Steps To Filing An Alabama LLC
Choose A Name
New business owners in Alabama should put care into choosing a name for their business. When selecting a name, they’ll need to pick something that is not already in use. The state of Alabama requires businesses to include an indicator in their title such as, “Limited Liability Company,” “LLC,” or “L.L.C.” Alabama also requires new businesses to obtain a Certificate of Name Reservation before they file any other documentation to their business. To ensure that this paperwork is approved, entrepreneurs should use DoMyLLC’s Name Availability Check Page.
Choose A Registered Agent
Alabama LLC owners are also required to choose a registered agent to operate on behalf of their business. It is often in their best interest to hire a third-party company, such as DoMyLLC, to provide professional registered agent services. Quality registered agent services could improve a company’s likelihood of success drastically. Registered agents are required for accepting legal correspondence on behalf of the company and forwarding it to owners.
File Certificate Of Formation & Pay Filing Fees
Once prepared with the necessary information, businesses must file a Certificate of Formation. To do so, they must submit the original copy of this form, as well as two copies, to the county in which the principal address is located. Business owners must submit a filing fee of $100 to the Secretary of State. They also have the option to pay an expedited fee of an additional $100, although there is no guarantee that the Probate Judge will accept the accelerated payment.
If the Probate Judge does accept this expedited service, businesses can expect the paperwork to be returned within 24 hours of receipt. Otherwise, it could take up to ten days for the paperwork to process. Companies are also required to pay a fee to the Probate Judge’s office. This fee will vary from county to county.
The information required for this form includes:
- The approved name of the LLC
- A copy of the Name Reservation certificate
- The name of the registered agent
- The location of the registered agent
- The effective date as so desired by the members of the company
- The name, title, and signature of the individual(s) responsible for forming the company
Additionally, you must indicate what type of Alabama LLC you wish to form. Options include a Series LLC, Professional LLC, or Non-Profit LLC.
File Initial Report
Alabama is one of a few states that requires LLC to file an Initial Report. This report, known as the Initial Business Privilege Tax Return, is due within two-and-a-half months of the company’s formation. Businesses must pay $100 to the Department of Revenue to file this form. When submitting this form, you’ll have to include your LLC name, principal address, and information about the registered agent.
Create An Operating Agreement And Hold Meetings
To begin business operations, an LLC must have an operating agreement that they keep with their records. The operating agreement helps define how a company will conduct business, outlining things such as the company’s ownership and how meetings will be run. Once in place, LLCs can begin holding meetings with members.
Obtain Employer Identification Number
The IRS issues Employer Identification Numbers to new businesses. This number is permanent and will be associated with your company from here on out. The EIN acts as a Federal Tax Identification Number. You’ll need it when filing annual taxes at both the federal and state levels. Additionally, a bank may require you to provide the EIN if you wish to open a checking account on behalf of your business.
File State Required Annual Reports
Each year, Alabama LLC owners must file a Business Privilege Tax Return and Annual Report with the Department of Revenue. This report is due on April 15th each year, beginning the year after your LLC is formed. There are fees associated with doing so. You can find more information about on the DoMyLLC Alabama Annual Report page.
Ongoing Maintenance
Your paperwork does not end after you form your Alabama LLC. At DoMyLLC, we provide reminders to let you know when to file state and federal taxes. We can also help you obtain and renew any licenses and permits that are relevant to your business’ operation. You may need to get licenses or permits at the federal, state, and local levels.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we offer comprehensive filing services, helping new business owners through every step of the process. For first-time business owners, this can provide the peace of mind necessary to help them form their new company. The following is included in our filing services:
- Name availability check
- Articles of Organization preparation
- Filing of the Articles of Organization with the Secretary of State’s office
- Sample documents, including a sample Operating Agreement, meeting notices, and meeting minutes
- Dedicated account manager
- Unlimited customer support
Still have questions? Be sure to reach out to the team at DoMyLLC, who can help Alabama business owners form their new LLC.