Legal Bueno

    How to Start Your LLC in Alabama

    Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!

    Quick Summary:

    • Filing Fee: $200
    • Turnaround time: immediately

    How do I start an LLC in Alabama?

    Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.

    If you want to check the name availability for Alabama, visit https://www.sos.alabama.gov/government-records/business-entity-records.

    After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.

    What are the costs & processing times of starting a business in Alabama?

    Here's the rundown for Alabama:

    • The filing fee is: $200
    • There are ongoing fees of $50 minimum (every year)
    • It usually takes immediately if you're filing online or 1-2 business days (plus mail time) if by mail.

    Why Alabama is a great state for your LLC

    Starting a company in Alabama offers several compelling advantages that contribute to a favorable business environment:

    • Low Tax Burden: Alabama has low sales and income tax rates, which can significantly reduce your overall tax liability and contribute to increased profitability.
    • Affordable Utilities: The state provides competitive utility rates that help keep operational costs low, enabling businesses to allocate resources more effectively.
    • Low Cost of Living: With a very low cost of living, employees can enjoy a better quality of life, which can enhance employee satisfaction and retention.
    • Tax Incentives: Alabama offers various tax incentives designed to stimulate economic growth and support new businesses, providing additional financial benefits for entrepreneurs.
    • Simplified Business Structure: Forming a limited liability company (LLC) is an efficient option for most entrepreneurs. An Alabama LLC offers:
    • Affordable Startup Costs: The filing fee to establish an LLC in Alabama is just $200, making it a cost-effective choice for startups and small to medium-sized businesses.
    • Alternative Structure Options: If an LLC isn’t suitable for your business model, Alabama also supports the formation of corporations, providing flexibility to choose the best structure for your needs.

    Overall, Alabama’s business-friendly environment, coupled with its economic incentives and protections, makes it an attractive location for starting your business.

    Legal Requirements

    Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Alabama:

    Articles of Organization

    The certificate of formation must include: 1. The name of the LLC;

    1. The address of the registered office;
    2. The name of the registered agent at the registered office;
    3. A statement that there is at least one member of the LLC;
    4. If applicable, a statement as provided in Ala. Code § 10A-5A-11.02(b)(3); and
    5. Any other matters the members determine to include.

    Ala. Code § 10A-5A-2.01

    Filing fee: $200

    Filing Process

    After you've prepared the initial formation documents, you need to file it! Here is what Alabama laws require for filing:

    A filing instrument must be:1. Properly executed; and

    1. Delivered, together with one exact or conformed copy and any additional copies required to the judge of probate or secretary of state, as the case may be, in person or by mail or courier, or, if permitted by the respective filing officer, by facsimile or electronic transmission or any other comparable form of delivery.

    Ala. Code § 10A-1-4.01

    If the judge of probate or secretary of state, as the case may be, finds that a filing instrument substantially conforms to the filing requirements and that all required fees have been paid, the judge of probate or secretary of state must file it immediately upon delivery by:1. Endorsing “filed," together with his or her name and official title and the date and time of receipt on the instrument and all copies required hereunder and on the receipt for the filing fee;

    1. Accepting it into the filing system and assigning the instrument a date of filing; and
    2. Delivering an endorsed copy to the entity or its representative.

    Ala. Code § 10A-1-4.02

    Additional Legal Considerations

    Here are some additional relevant laws that might be useful when operating your business in Alabama:

    LLC agreement–scope; function; and limitations

    Ala. Code § 10A-5A-1.08

    LLC agreement–effect on LLC and persons admitted as members

    Ala. Code § 10A-5A-1.09

    LLC agreement–effect on third parties and relationship to writings effective on behalf of LLC

    Ala. Code § 10A-5A-1.10

    Certificate of existence or qualification

    Ala. Code § 10A-5A-2.06

    Series LLC Provisions

    Ala. Code § 10A-5A-11.01 - 11.16