Filing An Alabama Corporation
Many new business owners find that registering as an Alabama corporation is in their best interest. Not only does a corporation provide numerous tax advantages, but it also helps owners establish credibility with their customers. Before making their final determination, prospective owners should take the time to learn about the Alabama Corporation filing process.
Steps To Filing An Alabama Corporation
Choose A Name
Once prospective business owners have decided that they would like to register as an Alabama Corporation, they must choose a name. The name that they choose must be unique and exclusive to their business, meaning it cannot already be in use by another entity. Prospective owners can avoid selecting a name that is already in use by utilizing the DoMyLLC Name Availability Check Page. Additionally, the state of Alabama requires the name include the word “Corporation,” “Incorporated,” or an appropriate abbreviation, such as “Inc.”
Choose An Agent For Service Of Process
An Alabama Corporation is also required to maintain a registered agent. A registered agent is responsible for accepting all legal correspondence on behalf of the company. As you can imagine, their role is integral to a company’s success. Because of this, many owners choose to hire the services of a professional third-party company, such as DoMyLLC.
File Certificate Of Formation And Pay Filing Fees
After securing a name and registered agent, those looking to open a business can proceed with filing the Certificate of Formation. When doing so, new companies must pay a $100 filing fee to the Secretary of State’s office, as well as a local filing fee with the Judge of Probate’s Office in the county in which they seek to register. The information required to complete the Certificate of Formation form includes:
The information required for this form includes:
- The name of the corporation
- A copy of the Name Reservation certificate
- Street and mailing address of the principal office
- Name and street address of the registered agent
- The purpose for which the corporation was formed
- Number of shares the corporation can issue
- Period of duration
- Name and addresses of the incorporators
- Director’s name and address
- Required signatures
File Initial Reports
Once registered, an Alabama Corporation must file an Initial Business Privilege Tax Return within two-and-a-half months of incorporation. Owners can learn more at our Initial Reports page.
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After the state has incorporated a company, incorporators should hold their initial corporate meeting. In attendance at this meeting should be the initial directors who were listed on Articles of Incorporation. These directors will serve in this capacity on the board until the next annual meeting of shareholders, where directors are up for election.
Once the board is in place, they will need to create corporate bylaws, define the roles of each member of the company, and elect officers. The bylaws are a private document that serve as an internal operating manual for the company. Bylaws are an integral part of corporate compliance, as the company is not allowed to exist or conduct business until the board of directors adopts them. Many banks and insurance providers also require proof of corporate bylaws before working with a company.
An Alabama Corporation is also required to issue stock and maintain a stock ledger. They can issue stock at their initial meeting, as board approval is needed to do so. The Articles of Incorporation should have outlined the amount of stock that the company is authorized to issue. Maintaining detailed records is essential, as it will protect the corporate veil and provide clarity to future investors. Although the initial corporate meeting is when the board should first issue stock, they will continue to do so throughout the life cycle of the company.
Obtain Employer Identification Number
An Alabama Corporation is also required to obtain an Employer Identification Number from the IRS. This number allows them to file taxes and open a corporate bank account. The EIN is also needed if the corporation wishes to hire employees.
File Alabama Required Annual Reports
The state of Alabama requires corporations to submit an annual report by March 15 every year. There is a fee associated with the filing, although it depends on your business’ income. The minimum cost is $100, in addition to another $10 filing fee. Owners can learn more at the Alabama Annual Report page.
Even after initial filings, Alabama Corporation owners still have administrative requirements they must fulfill. They must file state and local taxes each year. They also must ensure that they obtain and renew required licenses and permits.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, we specialize in helpings all business owners, no matter what organizational structure they choose. We can streamline the process and cover all of the administrative needs of Alabama corporation owners. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of Alabama’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
Interested in learning more about what DoMyLLC can do for your Alabama Corporation? Be sure to contact us today to learn more!