- Name your Alabama LLC.
- Additional considerations:
- Choose your registered agent.
- Prepare and file a certification of formation.
- Receive a certificate from the state.
- Create an operating agreement.
- Get an Employer Identification Number.
- Keep certain LLC records on-site.
How much is it to get an LLC in Birmingham Alabama?
How much does it cost to form an LLC in Alabama? The Alabama Secretary of State charges a $200 fee to file the Certificate of Formation. You must also pay a separate Probate Court filing fee, which is at least $50. You must reserve your business name by filing an LLC name reservation.
How much does it cost to start an LLC in Alabama?
Alabama LLC Certificate of Formation Filing Fee ($200) – Starting an LLC costs $200 in Alabama. This is the state filing fee for a document called the Alabama Certificate of Formation, The Certificate of Formation is filed with the Alabama Secretary of State.
- And once approved, this is what creates your LLC.
- The $200 fee is a one-time fee.
- You don’t have to pay any monthly (or annual) fees to start your Alabama Limited Liability Company.
- Note: LLCs are the most common business structure used in Alabama.
- They are the most popular business entity because they offer liability protection for the LLC owners.
Depending on the state, the Certificate of Formation form is sometimes called a Certificate of Organization or the Articles of Organization. Certificate of Formation is the most common name – but they all mean the same thing: the form used to create your LLC.
Do you need a business license for an LLC in Alabama?
Does Alabama Require a Business License? – Yes. Every Alabama LLC must obtain a Business Privilege License from the county where the LLC is located. And your LLC might need other licenses or permits, but that depends on where your business is located, and what it does.
How much does an LLC pay in taxes in Alabama?
LLC members need to pay the federal self-employment tax, which is 15.3% (12.4% for social security and 4.9% for Medicare). Alabama LLCs are subject to the Alabama Business Privilege Tax, which is $100 minimum.
Can I be my own registered agent in Alabama?
Privacy by Default – $ 125 Per Year Rated 4.7 / 5 stars by 607 clients on Google At a minimum, Alabama registered agents:
- Have a physical address in Alabama.
- Be open during business hours.
- Accept documents on your behalf and get them to you.
However, the right registered agent service can do much more. At Northwest, we go above and beyond the minimum to ensure top speed, security, privacy and support.
- A registered agent in Alabama has to be a state resident or a company that provides registered agent services.
- The agent must maintain a registered office address that is a physical address located within the State of Alabama.
- The registered agent must accept legal documents for your company.
All owners of Alabama businesses are able to be their own registered agents. This means you can designate yourself to accept official notices and service of process for your business, and there are only a few requirements you must meet in order to be the registered agent.
Your Alabama registered agent must reside in Alabama or be an Alabama business. The registered agent must also maintain a business office at the same address, which is officially referred to as the registered office. It is very important that the registered office be a street address where process may be personally served on the registered agent.
The registered office address can’t be a mailbox or P.O. Box. How do I become my own registered agent? It is easy to designate yourself as registered agent when you form your corporation or LLC. Just list your own name and address on the Certificate of Formation that you will file with the Alabama Secretary of State.
- You can download the Certificate of Formation for a corporation or LLC from the Alabama Secretary of State’s website.
- Write in your own name as the name of the registered agent.
- Then write in your street address as the registered office (if it is different from your principal office address).
- Finally, write in your mailing address if you have one that is different from your street address.
Once your Certificate of Formation is filed by the state, you are your business’s registered agent. Although being your own registered agent will cost you $0, keep in mind that once you are the registered agent for your business, your name and address will be public.
- Anyone who searches your business on the Secretary of State’s website will see your name and address listed.
- What if I already have a registered agent? If you have an existing Alabama business and you would like to change your Alabama registered agent to yourself, all you have to do is file a change of agent form.
You can download the Change of Registered Agent or Registered Office by Entity form from the Secretary of State’s website. You will need to fill in the old registered agent information and list yourself as the new registered agent. Make sure to list your street address as the registered office.
You may list your mailing address if you have one that is different from your street address. Make sure you sign as the new registered agent accepting the appointment on behalf of your business entity. Once you file the change of agent with the Secretary of State, your registered office address will be public information.
It will also be the address when any service of process and official mail for your Alabama LLC, Alabama corporation or Alabama nonprofi t will be sent. It is very important that you comply with the requirements for a registered agent and registered office.
- Hire us and we’ll complete the change of agent form for you for free.
- Do it yourself and file a change of agent form with the Alabama Secretary of State. The form costs $25 to file.
At Northwest, we do business the right way. We’re dedicated to getting you your docs fast, protecting your privacy and offering you support. H ere’s how:
- Same-Day Scans, Instant Notifications: We accept and scan your docs at our local office the same day. We notify you instantly and reach out to you if your essential mail goes unread.
- Privacy by Default®: We automatically minimize the exposure of and access to your personal data. If we can put our address on a public doc instead of yours, we do. If we don’t have to list your personal info, we don’t. We have tough privacy policies to keep your data safe and private. And we never sell your data.
- Free Limited Mail Forwarding: Of course we’ll get you your state and legal mail. That’s our job. But what if we get some of your regular business mail? It happens a lot—clients and businesses trying to connect with you via your registered agent.
- Corporate Guides®: Have questions? We have answers. Our guides are business experts whose sole job is to provide phone and email support for all your toughest business questions.
How do I get an EIN number in Alabama?
Employer Identification Number FAQs –
Do I need an EIN for my business? In most cases, yes. But even if you don’t need one as a legal matter, it usually makes sense to get one. For example, you won’t be able to open a bank account if you don’t have an EIN. Where can I get an EIN in Alabama? All EINs are issued by the federal government through the IRS, regardless of your state. You can apply for a federal employer identification number on the IRS website. Keep in mind that you will also have to get a state tax ID number from the Alabama Department of Revenue. How much does it cost to get an EIN in Alabama? EINs are provided by the IRS free of charge. How long does it take to receive an EIN in Alabama? If you apply online, you can get your company’s EIN in about five minutes. If you apply by mail, you will be waiting around four weeks. A fax application can be processed in about a week.
What is a privilege license in Alabama?
A privilege license is a license requirement of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40, Chapter 12, Code of Alabama 1975. The state and county license(s) is issued by the county Probate Judge or License Commissioner in the county where the business is located.
Does Alabama allow single member LLC?
A single owner or single member LLC is a sole proprietor by default. A sole proprietorship is not a separate taxable entity. A sole proprietorship files an Alabama Form 40, with the required attachments including Federal Schedule C or C-EZ, Form 40 Schedule E, or Federal Schedule F (See the form instructions.)
Do I need a business license to be self employed in Alabama?
3. Obtain licenses, permits, and zoning clearance if needed – Depending on the industry of your business, you may need to obtain a variety of business licenses or permits. This is managed by the Alabama Department of Business and Professional Regulation (DBPR), though some areas like health care are licensed by independent areas.
- You should also explore local regulations like building permits and zoning clearances where appropriate.
- Sole proprietors in Alabama aren’t required to have a general business license from the state.
- However, they are required to have a privilege license issued by the probate judge in the county where the business is located.
The license is good from Oct.1 through Sept.30 and must be renewed by Sept.30 yearly. The fee is subject to local ordinances. Local municipalities may have other types of fees, depending on your business. They could include contractor fees, zoning fees, and fees for home businesses.
Can you get an Alabama business license online?
How to Get a Business License in AL – You can get Alabama business licenses in person and online by applying with the correct licensing or regulatory agency for your business. Business licensing requirements generally depend on your business’s activity and location (zoning requirements). There are three main licensing jurisdictions:
State Local Federal
What is the Alabama business privilege tax?
The tax is calculated on net worth plus additions, minus exclusions, times the apportionment factor, less the deductions, which equals taxable net worth. The rate is based on the ability to pay and is determined by the entity’s federal taxable income apportioned to Alabama. The rate rages from $.25 to $1.75 for each $1,000 of net worth in Alabama. If taxable income of the taxpayer is:
Less than $1, the tax rate shall be $0.25 per $1,000 At least $1 but less than $200,000, the tax rate shall be $1.00 per $1,000 At least $200,000 but less than $500,000, the tax rate shall be $1.25 per $1,000 At least $500,000, but less than $2,500,000, the tax rate shall be $1.50 per $1,000 At least $2,500,000, the tax rate shall be $1.75 per $1,000
Minimum privilege tax is $100; plus the $10 Secretary of State annual report fee for corporations. For the taxable year beginning after December 31, 2022, taxpayers who would otherwise be subject to the minimum tax due of $100 shall pay $50 in lieu thereof.
Do you have to renew your LLC in Alabama every year?
Alabama Business Tax Licenses Must be Renewed Annually.
Who can be a member of an LLC in Alabama?
Form an Alabama LLC At LawInc we are Alabama LLC formation experts who can help you form a Alabama LLC, the right way. We file the Alabama LLC Articles of Organization with the Alabama Secretary of State Corporations Division and prepare a customized operating agreement.
- We can also obtain the Alabama LLC’s Taxpayer Identification Number (TIN also known as an EIN or Employer Identification Number), in an quickly as 24 hours.
- Let LawInc guide you through the process of forming your Alabama LLC.
- Let LawInc walk you through the Alabama Limited Liability Company formation process.
Our clear, concise and easy to use website, helps keep things simple. At LawInc we are Alabama LLC formation experts who can help you form a Alabama LLC, the right way. We file the Alabama LLC Articles of Organization with the Alabama Secretary of State Corporations Division and prepare a customized operating agreement.
- We can also obtain the Alabama LLC’s EIN, in an quickly as 24 hours.
- Let LawInc guide you through the process of forming your Alabama LLC.
- Allow LawInc walk you through the Alabama Limited Liability Company formation process.
- Our clear, concise and easy to use website, helps keep things simple.
- Alabama LLC Name Alabama LLC Name Registration: The first step in forming an Alabama Limited Liability Company is selecting the business name.
Alabama LLC names:
Must be unique from any other registered Alabama Limited Liability Company or other business entity and any names reserved on record. Must end with “Limited Liability Company,” “Ltd. Liability Co.” or “LLC.” Cannot contain language indicating or implying that it’s organized for anything other than a legal business purpose. Cannot contain the following words or their abbreviations: corporation or incorporated. Cannot contain a word or phrase that indicates or implies that it is organized for a purpose other than what’s stated in the articles.
Registering an Alabama LLC Name: After choosing an available LLC name, we will register the name with the AL Sec. of State. LawInc.com permits you to choose up to three names and will conduct a name search for your Alabama LLC, prior to filing. Alabama LLC Formation Alabama Articles of Organization: When forming an Alabama LLC, the articles of organization must be executed by the members named in the articles, or by an organizer, and then delivered to the Alabama county probate judge for filing, along with a copy.
LLC name LLC duration LLC purpose (either specific or “any or all lawful conduct for which a limited liability company may be organized”) Organizers’ name and address LLC registered office address LLC registered agent address LLC registered agent name LLC members’ names and addresses LLC organizer name and address (if any) Right, if given, of the member(s) to admit additional members, and terms and conditions of admission. Circumstances, if any, under which membership resignation will result in dissolution of the Alabama LLC. Statement as to whether the Alabama LLC will be member or manager managed. Any other internal regulation provisions.
Alabama LLC Filing: The Alabama LLC is considered registered upon delivery of 2 copies of the executed Articles of Organization to the Alabama probate judge and the judge deems them in compliance with state requirements. An issued and certified copy of the articles will be returned to the organizer or members.
Within ten days if issuance, a certified copy of the articles of organization will be given to Secretary of State, indicating the filing place, date and time. Post filing: After filing, Alabama law requires the creation of an operating agreement which dictates the LLC internal affairs and management.
Alabama LLC Membership Requirements:
Alabama LLCs must have at least 1 or more members. Member must be a natural person. Member may be admitted by signing, complying or by a vote. Member has the power to resign at any time, although certain prohibitions apply, as dictated by the LLC operating agreement. Member contribution can be in the form of money, property or services.
Alabama LLC Registered Agent: An Alabama Limited Liability Company must have a registered office and agent, designated to receive official state correspondence and notice if the LLC is sued. The agent must be a (1) natural person residing in Alabama, (2) a domestic LLC or corporation, or (3) a foreign LLC or corporation authorized to do business in Alabama.
Alabama LLC Registered Office: The registered office may be, but is not required to be, the LLC’s place of business. Alabama LLC Post Formation Requirements After an Alabama Limited Liability Company has been formed, the Alabama Secretary of State mandates certain ongoing responsibilities and duties.
Initial Business Privilege Tax Return: Within two and a half months of formation, the LLC must file a business privilege tax return. Failure to do so will invalidate the LLC. Annual Report: Alabama LLC’s do not have to file an annual report but are required to file annual tax returns on April 15.
A current list of the full name and last-known business, residence, or mailing address of each member, each governor, and chief manager A current list of the full name and last-known business, residence, or mailing address of each assignee of financial rights other than a secured party, and a description of the rights assigned A copy of the articles of organization and all article amendments Copies of any currently effective written bylaws Copies of the LLC’s federal, state, and local income tax returns and reports, if any, for the 3 most recent years Financial statements Records of all proceedings of members for the last 3 years Records of all proceedings of the board of governors for the last three years Reports made to members generally within the last three years Member control agreements A statement of all contributions An explanation of any restatement of value Any written consents obtained from members under this chapter A copy of agreements, contracts, or other arrangements or portions of them
Alabama LLC Taxes Alabama LLC Tax: The LLC tax rate for Alabama is variable, based on Alabama taxable net income. Alabama LLC Federal Income Tax: An advantage of the LLC is its tax flexibility. LLC members are allowed to select how the entity will be taxed. An LLC may be classified for federal income tax purposes as either a:
Sole proprietorship Partnership, or Corporation.
Single member LLCs are treated the same as sole proprietorships. Profits are reported on Schedule C as part of your individual 1040 tax return. Self-employment taxes on LLC net income must be paid just as you would with any self-employment business. Most multi-member LLCs elect to be treated as partnerships by the IRS and file IRS Form 1065.
On this form, LLC profits are reported and allocated to each of the owners according to the LLC’s operating agreement. Each owner is given a Schedule K-1, which shows each owner’s share of LLC income or loss. The owner then reports and pays taxes on this income on the owner’s annual 1040 income tax return.
It is important to note that as with sole proprietorships, all LLC profits are taxed to the owners, even if they are not actually distributed by the LLC. This situation can arise when the LLC needs to use its profits to pay ongoing expenses. If pass-through taxation is not desired, an LLC may elect to be taxed as a corporation by completing IRS Form 8832.
If this election is made, the LLC is taxed as a C corporation by the federal government. Because the corporate income tax rates for the first $75,000 of corporate taxable income are lower than the individual income tax rates that apply to the taxable income of non-corporate taxpayers, it is possible a net income tax savings can result from this tax election.
State Income Tax: Alabama LLCs are subject to a variable tax rate, based on taxable net income. Alabama LLC Federal Tax Identification Number/Employer Identification Number (EIN): The Federal Tax Identification Number, also known as the Employer Identification Number (EIN) is a number that is assigned to a business by the Internal Revenue Service.
- An EIN is like a Social Security Number for a business.
- It is a requisite for certain business functions such as opening bank accounts or hiring employees.
- An EIN will be required if the LLC has more than one owner, or any employees.
- LawInc.com can prepare your EIN application or even obtain your EIN for you, if you’d like.
Alabama LLC Dissolution To dissolve an Alabama LLC, you must provide the completed original and 2 copies of the Domestic Limited Liability Company Articles of Dissolution form, to the Probate Judge in the County where the original Articles of Organization were filed.
By court order By action of the organizers By action of the members Upon the termination of a member, but only if (a) the articles or operating agreement specifically indicate that the termination causes dissolution, or (b) if the last or sole member terminates membership and at least 1 member is not admitted within 180 days A merger occurs in which the LLC is not the surviving organization Upon the termination of a member, but only if (a) the articles or operating agreement specifically provide that the termination causes dissolution, or (b) if the last or sole member terminates membership and at least one member is not admitted within 180 days A merger occurs in which the LLC is not the surviving organization
Does Alabama have state income tax?
Alabama has a graduated individual income tax, with rates ranging from 2.00 percent to 5.00 percent. There are also jurisdictions that collect local income taxes. Alabama has a 6.50 percent corporate income tax rate.
What does a registered agent do for an LLC in Alabama?
What is an Alabama Registered Agent? – A Alabama Registered Agent is a person or company who agrees to accept legal mail and notices on behalf of your Alabama LLC, Legal mail (called Service of Process) is sent if your LLC is involved in a lawsuit. Additionally, the state may send notices and reminders to your LLC’s Registered Agent. Special offer: If you hire Northwest to form your LLC ($39 + state fee), they’ll include their Registered Agent service free for the 1st year.
Alabama Registered Agents should be available during normal business hours (9am – 5pm), Monday through Friday. And the Registered Agent for your LLC in Alabama must have a physical address in Alabama, PO Box addresses aren’t allowed. Note: Most states use the term “Registered Agent”, but some use the terms “Resident Agent” or “Statutory Agent”.
They all mean the same thing and we may use these terms interchangeably.
How much does it cost to register a business name in Alabama?
Obtaining a Trade Name or DBA If you want to establish an Alabama DBA (trade name), you must file a form with the Secretary of State. You’ll need to pay a filing fee of $30.
How much does it cost to dissolve an LLC in Alabama?
Is there a filing fee to dissolve or cancel an Alabama LLC? – To dissolve your LLC or corporation in Alabama, the Secretary of State filing fee of $100 is required. You will need to contact the Judge of Probate Office to verify their recording fees, but it is a minimum $50.
Two separate checks are required. If you would like to expedite your dissolution for an additional $100, you must call the Judge of Probate to see if they accept expedited dissolutions. Some counties only process filings as they come in. If Northwest is your original Alabama registered agent, send your dissolution filing to the Shelby County Judge of Probate.
The Judge of Probate Office there charges $56 to record your Articles of Dissolution and may be contacted with questions at (205) 669-3720.
Do I need a business license if I have an LLC in Florida?
Do LLCs need to obtain business licenses in Florida? – While Florida does not require all businesses to obtain a business license, many types of businesses are required to do so at a city or county level. Because LLCs are legal entities, they are still required to obtain any appropriate business licensing depending on the type of work conducted.
How do I get a business privilege license in Alabama?
State/county business privilege licenses are administered through the local county office. Visit the local county license authority, where the business is located, to purchase the state/county business privilege license. Note: The name of this office may vary depending on the county.