Alabama LLC Formation

Each state has different requirements for forming a limited liability company (LLC). Whether you are starting a business or incorporating a business already in existence, you'll want to understand the state requirements for LLC formation.

What is the cost to form an Alabama LLC?

At BizFilings, we clearly outline our fees and the Alabama state fees. When you view our pricing to form an LLC, you 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 form an LLC in Alabama with standard turn-around. Please note, Alabama requires the LLC'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 Organization.

What are the requirements for an LLC Name in Alabama?

The LLC name must end with "Limited Liability Company," "LLC" or "L.L.C." It must not contain words implying a business purpose different from those in the Articles of Organization. The name must not be the same as or deceptively similar to a name already in use, or a registered or reserved name.

What are the requirements for Member/Manager information in Alabama?

The following are Alabama’s requirements for the members/managers of LLCs:

• Minimum number. LLCs must have one or more members/managers.
• Residence requirements. Alabama does not have a provision specifying where members/managers must reside.
• Age requirements. Alabama does not have age requirements.
• Inclusion in the Articles of Organization. Alabama requires that manager managed LLC's list the name and address of each manager. If the LLC is managed by members, member information is not listed.

What are the requirements for an LLC's Articles of Organization in Alabama?

The document required to form an LLC in Alabama is called the Articles of Organization. The information required in the formation document varies by state. Alabama's requirements include:

• Registered agent. LLCs 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 the 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 LLC formation in a local newspaper or an initial report filing. Alabama requires the following:

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

Professional services businesses

Alabama does not allow professionals, such as accountants, attorneys and physicians, to form professional limited liability companies (PLLCs).

After forming a limited liability company (LLC) , 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 an LLC provides its owner(s). This guide outlines the ongoing requirements for Alabama LLCs.

What are the required taxes and fees for LLCs in Alabama?

• Annual report. Alabama requires LLCs to file a Business Privilege Tax Return and Annual Report with the Department of Revenue on or before three and one-half months after the beginning of the LLC’s taxable year.
• Taxes. For complete details on state taxes for Alabama LLCs, visit Business Owner's Toolkit or the State of Alabama .
• Federal tax identification number (EIN). An EIN is required for LLCs 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.

Additional Alabama information

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