Alabama Corporation Requirements

Each state has different requirements for forming a corporation. Whether you are starting a business or incorporating a business already in existence, you’ll want to understand state requirements for Alabama incorporation.

What is the cost to incorporate in Alabama?

At BizFilings, we clearly outline our fees and the state fees to form an Alabama corporation. View our pricing to incorporate as a C corporation or S corporation to plainly see:

  • BizFilings’ package prices. BizFilings offers three incorporation service packages from which you can choose.
  • State fee for standard turn-around. Our pricing shows the state fee to incorporate in Alabama with standard turn-around. Please note, Alabama requires the corporation's name to be reserved with the state at the time the incorporation documents are filed. This state name reservation fee is included with the state fee we display in our pricing.
  • Expedited turn-around. You will see the BizFilings and state fee, if any, for expedited turn-around.
  • Certified copy. Our pricing also clearly displays the BizFilings and state fee, if any, for issuing a Certified Copy of the Articles of Incorporation.

Incorporate in Alabama

What are the requirements for a corporate name in Alabama?

The corporation's name must contain the word “Incorporated,” "Corporation" or an abbreviation thereof. It must not contain words implying a different business purpose from those in the Articles of Incorporation. The name must not be the same as or deceptively similar to a name already in use, or a registered or reserved name.

What information is required for Corporate Directors in Alabama?

The following are Alabama’s requirements for directors of corporations:

  • Minimum number. Corporations must have one or more directors.
  • Residence requirements. Alabama does not have a provision specifying where directors must reside.
  • Age requirements. Directors must be at least 19 years old.
  • Inclusion in the Articles of Incorporation. Director names and addresses are required to be listed in the Articles of Incorporation.

What are the requirements for the Articles of Incorporation in Alabama?

The document required to form a corporation in Alabama is called the Articles of Incorporation. The information required in the formation document varies by state. Alabama's requirements include:

  • Officers. Officer names and addresses are not required to be listed in the Articles of Incorporation.
  • Stock. Authorized shares and par value must be listed in the Articles of Incorporation. An increase in the number of shares or par value does not affect initial filing fees.
  • Registered agent. Corporations must list the name and address of a registered agent with a physical address (no post office boxes) in Alabama. The registered agent must be available during normal business hours to accept important legal and tax documents for the business.

Other filings required at time of incorporation

Some states require additional filings or steps at the time of incorporation, such as a county level filing, publishing notice of the incorporation in a local newspaper or an initial report filing. Alabama requires the following:

  • Initial report. Alabama requires corporations to file the Initial Business Privilege Tax Return and Annual Report with the Department of Revenue within two and one-half months of incorporation.
  • County Filing. Businesses may be required to undertake a filing at the county level prior to incorporation.

Alabama Registered Agent Service

Professional services businesses

Alabama allows professionals, such as accountants, attorneys and physicians, to form a professional corporation (PC).

After forming a corporation, you must undertake certain steps on an ongoing basis to keep your business in compliance. These steps are also important in preserving the limited liability a corporation provides its owners. This guide outlines the ongoing requirements for Alabama corporations.

What are the requirements for Corporate Records in Alabama?

Alabama corporations are required to keep the following records at their principal place of business:

  • Names and addresses of directors, officers and shareholders
  • Minutes of all director and shareholder meetings
  • Records of actions taken by directors or shareholders without a meeting
  • Record of all shareholders and their number and class of shares
  • A copy of the Articles of Incorporation, bylaws and any amendments to those documents
  • Written communications to shareholders over the past three years
  • The company's most recent annual report

What are the Corporate tax requirements and ongoing corporate fees in Alabama?

The following are taxation requirements and ongoing fees in Alabama:

  • Annual report. Alabama requires the Business Privilege Tax Return and Annual Report and Schedule AL-CAR to be filed with the Department of Revenue no later than two and one-half months after the beginning of the taxable year.
  • Taxes. For complete details on state taxes for Alabama corporations, visit Business Owner's Toolkit or the State of Alabama .
  • Federal tax identification number (EIN). An EIN is required for corporations that will have employees. Additionally, most banks require an EIN in order to open a business bank account.
  • State tax identification number. Alabama does not require a state tax identification number.

Business licenses

Business licenses and/or permits are required for most businesses. The BizFilings Business License Application Package can help you stay on top of these requirements.

S corporation election

Alabama recognizes the federal S corporation election and does not require a state-level S corporation election.

Additional Alabama information

View the following additional resources BizFilings has for forming and maintaining LLCs in Alabama

     

State Guides


The state in which you form your company can provide certain benefits.

Please select both a state and a topic.

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