Alabama LLC
What is an Alabama LLC?
Alabama LLC or Alabama Limited Liability Company is a business formation registered with the Alabama Secretary of State. The Alabama Limited Liability Company is similar to the Alabama Corporation. The LLC is a hybrid of a Corporation and a Limited Partnership. This business structure in Alabama is more commonly used than a Corporation for small business owners and investors.
Alabama LLC Requirements
- Name Reservation Fee of $25 or $28 when filing online.
- State Filing Fee of $200.
- A Registered Agent located in Alabama. See our service here.
- Annual Report (Business Privilege Tax) compliance due every March 15. Initial filing due within 2.5 months of registration.
- Beneficial Ownership Information Report filing. Report must be submitted after LLC formation starting January 1, 2024.
Alabama LLC Structure
AL Limited Liability Companies are structured legally with the Limited Liability Company Certificate of Formation. Like many states, the document for an LLC is short and simple.
The required information to be listed:
- The LLC Name
- Copy of Name Reservation
- Name of Registered Agent and Registered Office
- Type of LLC (Series, Professional or Non-Profit)
- Date and Signature
Alabama LLC Name
The name of the Alabama LLC is required to contain the words Limited Liability Company. You can also use an abbreviation of Limited Liability Company. Acceptable abbreviations are L.L.C. Or LLC. You must also follow the Code of Alabama when choosing your Alabama LLC name.
Copy of Name Reservation
As mentioned in the requirements above, you must file a name reservation to even file the Alabama Limited Liability Company. A copy of that filed document must be included with your Alabama Limited Liability Company Certificate of Formation.
Alabama Registered Agent
An Alabama Registered Agent must be a person or company that has an office located in the state of Alabama. The Registered Agent can not be located an a PO Box. Information for the Registered Agent listed on the Limited Liability Company Certificate of Formation will be the name, street address and mailing address if it is different from the registered street address.
Alabama LLC Type
There are three types of Alabama Limited Liability Companies that you can choose from for your legal formation.
- Series LLC complying with Title 10A, Chapter 5A, Article 11
- Professional LLC complying with Title 10A, Chapter 5A, Article 8
- Non-Profit LLC complying with 10A-5A-1.04(c)
| Alabama LLC Facts | |
|---|---|
| Formation Document | Certificate of Formation |
| Name Reservation Fee | $25 ($28 online) |
| Filing Fee | $200 ($208 online) |
| Our Fee | $145 (includes registered agent) |
| Government Agency | Secretary of State |
| Expedite Options | No |
| Online Filing | Yes |
| Annual Report Due Date | March 15 |
| Yearly Taxes | Business Privilege Tax ($100) |
| State Income Tax | 2% to 5% |
How to File an Alabama LLC
After having filed a name reservation with the Alabama Secretary of State, a limited liability company is formed under AL Code Section 10A-5A-2.01, by filing a Certificate of Formation with the Alabama Secretary of State.
Steps in forming an Alabama LLC:
- Choose a name for your LLC that conforms to Alabama state law. File a Name Reservation Request to approve the name choice for your Alabama LLC.
- Form for Domestic Entities. The fee is $25 or $28 when filing online.
- To form an Alabama Limited Liability Company, you will file a Certificate of Formation with the Alabama Secretary of State.
- Pay the Secretary of State fee of $200 to file a new Alabama LLC structure ($208 if filing online).
- Appoint an Alabama registered agent and registered office for your Alabama LLC.
- Write an Alabama LLC Operating Agreement. This does not have to be filed with the Alabama Secretary of State.
- Open a business bank account with the AL LLC at the bank of your choice. Banks will require you to file an EIN with the IRS first.
- File initial and annual reports and pay annual Business Privilege Taxes.
- Submit Beneficial Ownership Information report to the Financial Crimes Enforcement Network ($0).
Additional Resources:
How to Start an Alabama LLC
How to Form an Alabama LLC (paper option)
Alabama LLC Operating Agreement
Alabama LLCs are governed by an operating agreement, which lays out the ownership of your company, rights and responsibilities of members, and how the company will run. An LLC operating agreement is an internal document. It is not filed with any government agency. You will use this document in the case of an internal dispute or a court order to decide the legal outcome of the problem.
Alabama LLC Annual Report and Taxes
Limited liability companies must pay the annual Business Privilege Tax and file an annual report each year by March 15. There is an initial filing as well, due 2.5 months after registration. An LLC is required to remain compliant with state law or it will face administrative dissolution by the Alabama Secretary of State.
Federal Beneficial Ownership Information Report Filing
As a newly-formed LLC, you’ll probably need to submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN). The BOI report provides the federal government with basic information about your LLC and the people with the most power over your business decisions and profits. Starting January 1, 2024, this report is due after company formation. This report is a little complicated, but we can make filing painless with our $9 BOI report filing service.
Why Hire Corporate Filing Solutions to Form Your Alabama LLC?
Starting your LLC in Alabama shouldn’t be a hassle or a time consumer. That’s why we offer Filings Made Easy™ to make starting an LLC in Alabama super easy.
Hire us and relax while our filing experts form your new Alabama LLC. Our staff will process orders the same business day as they are received. To make things even easier, we bundle the first year of registered agent service and ensure your Alabama LLC comes fully equipped and ready to do its job.
Start your LLC in Alabama and get Registered Agent service for $95 a year.