Choosing a corporate structure can make or break your business in Alabama. While it may be tempting to operate your business as a sole proprietorship, doing so puts you at risk for liabilities and debts. Learn more about LLCs vs Sole P here. Otherwise, if you know you want an LLC then read on to learn how to get an LLC in Alabama.
A corporate structure can protect you from various liabilities. However, this protection comes at the expense of your ownership and control of the company.
An LLC is a perfect option if you want the protection provided by a corporate structure and a higher degree of ownership. Not only does an Alabama LLC protect your personal assets, but it also offers you more flexibility in terms of ownership, leadership structure, and taxation.
Registering your Alabama LLC is surprisingly straightforward. By following these steps, you will be doing business as an LLC in the state in no time.
1. Register Your LLC’s Name
You can pick a name, or you can use your trade or doing-business-as name. It’s up to you. Whichever name you select for your LLC, register it online with the Secretary of State. You’ll need to pay $28 for the registration.
Also, don’t forget to check if another business has your planned LLC name.
Note: This is different than the process in most states so if you’ve filed an LLC in other states know that you must register your name first and then file for your LLC.
2. Designate a Registered Agent
The registered agent can be you or a company. Once you select one, the party will represent your LLC. You can view a comprehensive list of registered agents here.
3. File Your LLC’s Certificate of Formation
To fill out the Certificate of Formation, you’ll need to list your LLC’s name, the registered agent’s contact details, the type of LLC you are forming, the date of your LLC’s formation, and signatures from several parties, including the LLC’s organizer.
After filling the form out with all the necessary information about your LLC, you must file the certificate with the County Probate Court.
4. Draft Your LLC’s Operating Agreement
You may forego this step. However, by drafting an operating agreement, you dictate how you will run your LLC. In the absence of an agreement, Alabama LLC laws will take effect and guide how you will operate your LLC. You can hire an attorney or get an attorney drafted Operating Agreement here.
5. File Your Alabama LLC Taxes
You must file your Business Privilege Tax Return and Annual Report with the Alabama Department of Revenue. After you have done that, you must register for your EIN (employer identification number) with the IRS.
6. Obtain a Business License with the County Probate Office
Your license will depend on your business and which part of the state your LLC will be in. For more information, visit the County Probate Office and ask about local business license requirements.
It may take you a couple of months and several visits to different institutions to get your Alabama LLC up and running. Luckily, there’s an easier way to launch your LLC in Alabama.
We can file your register on your behalf and help you launch your business in less than a week. Order your LLC here. Or, if you have questions, reach out now via email@example.com or our contact form to revolutionize your business in no time flat.