Alabama Limited Liability Company
So you’ve decided to form a Limited Liability Company in Alabama? Excellent choice.
Throughout the course of your Alabama LLC’s life, you will be able to refer to this page over and again to find the answers, information and forms you’ll need to organize and maintain your Alabama LLC.
Alabama LLCs are formed with the Secretary of State. In order to create an LLC, you file a form called the Certificate of Formation (also known as Articles of Organization).
In Alabama (no other state does it like this), you send your certificate of formation to the probate judge in the county where you’ll be forming your LLC. That judge will pass on the approved paperwork to the Secretary of State. Once filed, the Alabama Secretary of State will send you a confirmation that your LLC has been formed.
Here’s what you need to know about forming an LLC in Alabama:
How do I form an LLC in Alabama?
How much does it cost?
Total cost: $178. This fee covers the $100 filing fee, the $50 probate judge fee, and $28 reservation fee.
How long will it take?
Alabama will take six months getting back to you, though, so if you want it formed sooner you can include an additional $100 for an expedite fee and receive confirmation within a three days.
Alabama is the only state that requires you to reserve your name prior to filing. Name reservations are required in Alabama and cost $28.
You can do an Alabama LLC name search for free online. Your LLC’s name must be unique and include the words “Limited Liability Company” or the abbreviation “L.L.C.” or “LLC”.
On the Certificate of Formation, you must designate an Alabama registered agent.
How are Alabama LLCs governed?
You form the LLC with the Secretary of State, but an LLC is governed internally by its operating agreement.
Where can I find forms for my Alabama LLC?
You can find every legal document you’ll need for your Alabama LLC in our Free LLC Forms section.
What forms do I need?
Links to forms you’ll most likely need to start your limited liability company in Alabama are provided below:
Get a Tax ID Number
After you receive confirmation from the State, you’ll need to obtain an Employer Identification Number for your LLC, or what’s more commonly known as an EIN.
Open a bank account
Depending upon what your bank requires the members, may need to sign a resolution to open a bank account for your LLC.
What if I want to form a corporation instead?
Learn more about Alabama corporations.
Alabama LLC Maintenance
Below, you’ll find some waypoints to help you navigate operating an LLC in Alabama.
Alabama LLCs have annual reports, but what is semi-unique is that the filing of an annual report coincides with a tax called the Alabama Business Privilege Tax. Fortunately, you’ll only need to file one form, Form-BPT with the Secretary of State. The privilege tax is a minimum of $100 and is due on March 15th. To learn more about these annual reports, see our Alabama annual report page.
All revenue in your Alabama LLC will be passed onto you personally, which means you’ll have to pay Alabama’s personal tax rate (as well as applicable federal taxes) on all profit that passes to you through your LLC. See our Alabama taxes page for more specifics.
With an LLC, you can also elect to be taxed as an S Corp. This is an election made with the IRS, and in some situations can save you money. To learn more, go to our S Corp election page.
Doing business in other states
In order to qualify your Alabama LLC in a new state, you’ll need to obtain an Alabama Certificate of Existence from the Secretary of State. Then you’ll need to file the Certificate of Authorization in your new state and attach a Certificate of Good Standing to the application. The cost varies per state. See our foreign LLC registration page for more information.
- Should you need certified copies of your Certificate of Formation, you can find out how to get them on our Alabama certified copy page.
- To find out how to obtain an apostille for your LLC, see our Alabama apostille page.
- If you need to change your Alabama registered agent, we’ll show you how.
- Reviving an Alabama LLCis not possible, as the Alabama Secretary of State no long administratively dissolves LLCs. If your LLC in Alabama has been dissolved, you’ll need to form a new limited liability company. However, if you need to dissolve your Alabama LLC, then we have instructions on how to accomplish that.
- And finally, when it’s time to sell, we also have free forms you can use to sell your LLC membership interest.