Alabama Corporation

You can get an EIN directly from the IRS. The application is free, and most businesses can apply online. However, if you don’t have a social security number, you’ll need to submit a paper application form. Can’t bear to fill out yet another application? Hire Northwest to get your EIN for you. Just add on EIN service during checkout when you sign up for our incorporation service.

Corporate bylaws cover basic policies and procedures for issues such as company finances and management. Bylaws should cover a range of topics, answering key questions like those below:

• Meetings: When and where will meetings for shareholders and directors be held? How many attendees are required to transact business? What are the procedures for voting or proxy voting? How do you call a special meeting? What actions can be taken without a meeting?

• Stock: How are stock certificates issued and transferred? How is voting affected by issues such as corporate stock owners or fractional shares?

• Directors and officers: How many directors must there be? Which officer positions are required? What powers do they have? How do you fill a vacancy or remove a director or officer?

• Finances: What are the procedures for retaining profits, issuing dividends, and paying bills? Who can withdraw money from the corporate bank account or sign checks?

• Records: Where is the corporate book to be kept? What information will be maintained? How are requests for review or access honored? Can records or copies be kept or distributed digitally?

• Amendments and emergencies: Who can amend bylaws and how? Can emergency bylaws be adopted in the case of disaster?

AL Code § 10A-2-2.06 (2019) explains that Alabama bylaws can make any other provisions for managing and regulating the corporation as well, assuming additions are in accordance with state law.

Creating bylaws can be overwhelming—where do you start? Northwest can help. We give you free corporate bylaws when you hire us to form your Alabama corporation. We know what kinds of topics and questions corporations need to address, and we’ve spent years refining and improving our forms. We offer many other free corporate forms as well, including templates for resolutions and meeting minutes.

For C corps operating on a calendar year, annual filings are due by April 15th each year and use Form CPT. (S corps use Form PPT, which is due by March 15th.)

These filings can be easy to forget—which is why we send our clients automatic reminders for your Alabama Annual Report and Business Privilege Tax filings. Or better yet, let us file for you. With our business renewal service, we send you the completed annual report for you to add your tax info and signature, then we submit the report for you for $100 plus the state fee and any tax owed.

Yes—although it’s really just the tax and not the report. Your first filing must be submitted within 2.5 months of incorporation. This initial filing uses a different from (Form BPT-IN) and has a minimum tax due of $100. You don’t have to include the $10 annual report fee or include Schedule AL-CAR.

In addition the Business Privilege Tax discussed above, Alabama has a flat corporate net income tax rate of 6.5%. There is no minimum tax payment.

The state sales tax is 4%, but local areas can add on additional sales taxes as well. The average total sales tax in the state is 7.792%.

Yes, all Alabama entities are required to register with the Alabama Department of Revenue. Registration can be completed on the My Alabama Taxes (MAT) website.

$236 online. That’s $200 for the state filing fee, $28 for the online name reservation fee and $8 for the online convenience fee (4%). Mailed filings total $228 for the state fee and the name reservation fee.

Online filings are usually processed within 2 days. Mailed filings are also processed by the Secretary of State in about 2 days, but be sure to factor in additional time for postage and handling.

The Code of Alabama Title 40 Chapter 12 lists all sorts of licensing requirements—pretty much every business will need some kind of license. Although required by the state, most licenses are obtained locally through the county probate office or county licensing commission.

Cities and towns often have their own municipal licensing requirements as well. For example, Birmingham requires those conducting business in city limits to get a general business license.

For some license applications you may need an EIN or a certified copy of your Certificate of Incorporation. At Northwest, we can streamline the process and get these for you—simply add on these items during checkout.

A corporation formed outside of Alabama—but which conducts business in the state—is considered a foreign Alabama corporation. For example, if you incorporated in Georgia but decide to open a storefront in Alabama, you would be a foreign Alabama corporation. This also means you would need to register with the state by filing an Application for Registration with the Alabama Secretary of State. Foreign corporations are required to file the Alabama Annual Report and Business Privilege Tax each year as well.

Absolutely! We’re happy to start a nonprofit corporation for you. Note that incorporating an Alabama nonprofit requires a different form, the Domestic Nonprofit Corporation Certificate of Formation.

It’s a conundrum: you need a local number to display on your website and give to customers, but you don’t want to make your personal number quite so…public. We get it. And we’ve got you covered with Northwest Phone Service. We can provide you with a virtual phone number in any state—plus unlimited call forwarding and tons of easy-to-use features. You can try Phone Service free for 60 days when you hire us to form your corporation, and maintaining service is just $9 monthly after that. No contract required.