Alabama is located in the southeast of the U.S. and is bordered by Tennessee, Georgia and Florida. Known as both the Yellowhammer State and the Cotton State, Alabama’s economy has diversified significantly over the last few decades.
If you want to start your own business in Alabama, one of the best ways to do so is by forming an LLC.
Alabama Limited Liability Companies (LLCs) are a business entity designed for startups and small- and medium-sized businesses. Forming an LLC is fast, easy and inexpensive. LLCs offer many of the protections and advantages of large corporations without all the rules, regulations and compliance issues common to larger business entities.
In Alabama you also have the option to set up a “Series LLC” — these are specialized LLCs designed to allow you to manage multiple separate LLCs under one master, umbrella LLC. We have a helpful guide to Series LLCs to help you decide if they’re right for your new business.
Let’s start by looking at the advantages of forming an Alabama LLC.
Alabama LLCs have several benefits for business owners.
An Alabama LLC must have a designated street address. That could be your home address (if you’re running the company from your residence), where your office is located or any physical address of your preference — but it must be inside Alabama. It cannot be a P.O. Box.
Every Alabama LLC must have a “Registered Agent.” That could be you, the managing director, owner or a dedicated Registered Agent service. The Registered Agent in Alabama is someone who receives official legal and tax correspondence and has responsibility for filing reports with the Alabama Secretary of State.
At Incfile, all of our packages include a Registered Agent service, which is free for the first year and just $99 per year thereafter. We also have a dashboard where you can log in and easily view any document your Registered Agent has received on your behalf. Here are a few reasons you might want to appoint Incfile as your Registered Agent service:
You will need to gather together certain information about your proposed business for filing with the Alabama Secretary of State. We’ll guide you through everything you need to do when you create your business with us.
Once you've gathered all the information together for your LLC, you’ll need to file a formal document with the Alabama Secretary of State to create your LLC. This document is known as your Certificate of Formation, and filing it starts the process of creating your Alabama LLC. You can do this online, mail in a form or have Incfile do it on your behalf. You must also submit a name reservation form.
Alabama LLCs aren’t required to have an Operating Agreement, but they are extremely useful for several reasons. Your Operating Agreement covers how the business will be run, how managers and members are chosen, the rights and duties of members and several other key areas. Learn how to create your Operating Agreement here.
If you’re interested in having your Operating Agreement created for you, Incfile will draft a general Operating Agreement within most of our online business formation packages. It can also be selected as an add-on option in our Silver package. This Operating Agreement will be a basic template that you can make changes to anytime you see fit.
You can find lots more useful information on how to form an LLC here. It answers questions like:
Incfile provides a cost-effective service to help you create your LLC. We guide you through the process and handle most of the administrative steps on your behalf, such as filing the Certificate of Formation. Our basic package also provides free Registered Agent service for the first year. If you're looking for help starting an LLC, our comprehensive services provide outstanding value.
|State Fee||State Filing Time||Expedited Filing Time|
|$175||4 Weeks||15 Business Days|
This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.
Due: Annual Year: April 15th Fiscal Year: 3½ months after beginning of tax year
Note: LLCs elected to be taxed as corporations follow corporation rules.
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