Should you form an LLC in Alabama? We've collected the relevant information that will help you make this decision.
- Taxed as partnership
- Low cost of living
- Low cost of doing business
- Among "Worst States for Business" (Forbes 2016)
- Disclosure in original filing
Cost of doing business
- $195 filing fee / $0 periodic statement
- Owners disclosed in original filing
Forming an LLC in Alabama
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers “Limited liability company”, “LLC”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. Do a FREE name search now.
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:
- Required number of members
Alabama LLCs must have at least one member or manager listed in their incorporation documents.
- Age restrictions
LLC members in Alabama may be of any age.
- Residence restrictions
There are no residence restrictions imposed on LLC members in Alabama.
- What information needs to be included in the Articles of Organization?
Outside of the principal member, LLC Members in Alabama are not required to list their name or addresses in their Articles of Organization.
Requirements for the Articles of Organization
The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in Alabama:
Registered agent information
All Alabama LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company.
Additional Alabama filing requirements
Many states have steps in the LLC formation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the steps required throughout all of Alabama:
County-level filing requirements
Many counties require new LLCs to file paperwork at the county level. Be sure to check with your local government to see if this is the case for your new business.
Initial report deadlines
New LLCs in Alabama are required to file an annual report and business privilege tax return with the state’s department of revenue within 2½ months of incorporating.
Alabama LLC taxation and fee requirements
There are several tax and fee requirements that must be addressed by LLCs in Alabama. They are as follows:
All states have complex taxation requirements. For more information regarding taxes in Alabama, it is advised that you visit the state’s official business related website.
Annual report requirements
LLCs in Alabama are required to file two documents each year called the Business Privilege Tax Return, and Annual Report, during the first 3½ months of the business’s fiscal year. Learn more about annual reports.
Tax identification numbers
Alabama requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. Alabama does not require LLCs to obtain state tax ID numbers. Learn more about EINs.
Business license requirements
The business licenses and permits required in Alabama vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers these topics. Learn more about licenses and permits.
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