Start a Corporation in Alabama

If you’re starting a new business, you probably already know what you want to name your corporation. But you’ll need to know if your preferred name is available. To find out, visit Alabama’s business entity records and search until you find the perfect name for your corporation. Alabama is also the only state that requires a name reservation before filing.

Name reservations are a unique requirement—Alabama is the only state that requires one. On the upside, they’re processed immediately online. On the downside, the name reservation sets you back $28. On your Certificate of Incorporation, enter your business name and include a copy of the Name Reservation Certificate with your formation paperwork. When you hire us, we’ll reserve your name for you as well.

Per AL Code § 10A-1-5.31, every Alabama corporation must appoint a registered agent. You don’t need to hire a registered agent, but if you do, make sure your registered agent will list their address on your filing wherever possible to ensure maximum privacy.

Once you know who your registered agent will be and what your corporation name is, you’re ready to file your Alabama Certificate of Incorporation. Follow along with our filing instructions below:

Note that the information you provide becomes part of the public record—permanently.

You’ll need to include the following information in your Certificate of Incorporation:

• Name Reservation and Name
• Principal Office. This is the main business office of your corporation and will become part of the permanent public record. Hire us as your registered agent, and you can use our Alabama address here.
• Registered Agent. For your Alabama registered agent, you can either list an individual Alabama resident (such as yourself) or an authorized business (like Northwest). We recommend Northwest.
• Registered Agent Address. This Alabama street address is where your registered agent will be available to accept legal notifications during business hours. Avoid listing your personal or home office address on this public document when you hire a registered agent service. Our address will go here when you hire Northwest. Note that in addition to the street address, you’ll also need to list the county where your registered office is located (ours is in Houston County).
• Preparer. On the first page of the paper form, there’s a box with space for the name and address of the person who prepared the form (typically the same person as your incorporator). When you hire Northwest to form your Alabama corporation, we’ll prepare your Certificate of Incorporation.
• Purpose. It sounds existential, but this section is really just asking about what your business will actually be doing. The form already includes a general purpose, so a short phrase or sentence describing your business activities (for example, “motorcycle repair and maintenance”) is sufficient.
• Amount of Authorized Stock. List how many shares you wish to create (you need at least one). You can distribute some or all of these shares later on at your organizational meeting. You can also list the par value (initial price) of these shares, but this is optional, so you’re free to skip that part.
• Duration. All corporations will exist continuously (“perpetually”) by default. If you want your corporation to exist only for a set amount of time or to have a particular end date, you’ll need to attach an exhibit with your corporation’s specified duration.
• Alabama Incorporator. Someone has to sign and submit your Certificate of Incorporation, and that person is your incorporator. Incorporators don’t have to be directors, officers, or anyone in the corporation. They do, however, have to include their name and street address. We’ll be your incorporator when you hire us, and our name and address will go here instead of yours.
• Director Liability and Attachments. The form explains that directors are not generally liable to business or shareholders for financial losses or damages, with a few exceptions, such as intentional harm and violation of law. The only action you need to take in this section is to tick the box for attachments if you’re including any exhibits.
• Signatures. Your incorporator(s) sign and date the form, and can put “incorporator” under their “Title/Capacity to Sign.” Again, we’ll be your incorporator when you hire Northwest.

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.

Learn how to get an EIN for your corporation.

Starting in January 2024, most US corporations will be required to file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). On this report, you’ll need to provide some information about your corporation, its beneficial owners, and (for new corporations) the company applicant.

• Beneficial Owner: Anyone with at least 25% ownership stake in your company. Plus, anyone with significant control over company operations, such as your CEO, CFO, or General Counsel.
• Company Applicant: The individual who filed your Alabama Certificate of Incorporation with the Secretary of State. (Note: Corporations formed prior to 2024 don’t need to include company applicant information.)

You can file the BOI Report online, for free, using the Beneficial Ownership Secure System (BOSS), starting in 2024. You won’t be able to file prior to January 2024.

Bylaws are the internal rules you set for your business. They put into writing how decisions will be made and who gets to make those decisions. All the major organizational processes and procedures for your corporation will go in your bylaws.

For more on Alabama Corporate Bylaws (including free Alabama Corporate Bylaws templates), see our Alabama Corporate Bylaws resource.

An organizational meeting is the first official meeting of the corporation after the business is legally formed with the state. At this meeting, bylaws are adopted, officers are appointed, and any other initial business is conducted. The first meeting minutes should also be recorded and added to your corporate record book.

Businesses that mix personal and business finances together risk losing their liability protections, so your corporation will need its own bank account. In addition, a corporate bank account is essential for easily accepting payments, paying bills and holding funds.

In Alabama, corporations file a combined Annual Report and Business Privilege Tax. In addition, Alabama corporations are subject to state tax requirements, including a corporate income tax.