General Guide to Company Incorporation in Alabama
Updated on Tuesday 21st November 2017
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With varied tax benefits, contributions, duties and rights matters linked to company incorporation process, Alabama is a preferred state for doing business. The registration procedure is simple and with less bureaucracy, no matter if it involves a company controlled from overseas or from one of the cities in Alabama. Individuals who want to start a business in America can make a request to our specialists in company formation in USA. Before that, we also invite you to read the general guide to company incorporation in Alabama which presents the main information about how you can activate in this state.
The minimum share capital for an LLC in Alabama
A limited liability company in Alabama is the most popular business entity in the state and can be registered without having to consider a minimum share capital. The incorporation process of an LLC starts with the Alabama Secretary of State Business Services, but you can also register another type of business with the same authority, except sole proprietorships.
Requirements for setting a company in Alabama
The Articles of Association for your company in Alabama must provide details about the owners and the managers of the business, including information about their rights, duties, powers and so on, but not being obliged to mention the names of the members. Please consider that a registered agent needs to be appointed when registering the LLC in Alabama.
Sales tax for companies in Alabama
If your company’s purpose is to sell particular goods and services, a sales tax is applicable and payable to the Department of Revenue in Alabama. The sales tax is presently set at 4%, but with a maximum of 11% rate for certain cases. Entrepreneurs who sell taxable products and services are entitled to collect such fee from buyers, together with the settled price, and then send it to the tax authority mentioned above, in compliance with the rules and regulations established in this matter.
Opening a bank account for your company in Alabama
When establishing a business in Alabama, the owners must also set up a bank account which can be easily done if the requirements regarding the documents are fulfilled. The condition to open a corporate bank account in Alabama is not imposed on foreign companies which intend to set up branches in Alabama.
Employees for a company in Alabama
When looking for staff for your enterprise in Alabama, you should reflect on how recruitment companies can help. These have an extended database with potential candidates which can be presented for your company in accordance with the positions available and also your requirements. In this matter, the human resources department can offer support, whether you want to hire locals or persons from abroad. Our company formation consultants in USA can give additional information about the workforce in Alabama and the conditions related.
Salaries for employees in Alabama
If you want to start a business in USA, you might want to check some information regarding the minimum wage in the chosen state. In Alabama, the minimum wage is set at $290 per week which represents approximately $15,000 per year without calculating the taxes involved. Salaries in a company in Alabama will vary depending on the skilled workforce and the terms settled for each type of contract.
A website for your business in Alabama
Each business whether registered by a local entrepreneur or from abroad should consider opening a website in order to promote its activities. This is the most popular way of displaying the products, the activities or the services of a company.
Virtual office for your company in Alabama
If you have decided it is not the time to open a traditional office in Alabama, but still wanting to get known on the American territory, you may choose the services of a virtual office in Alabama. These include a notable business address, a local phone number, and complete communication technology in order to serve potential collaborators and clients in Alabama. Please consider that our team can also offer virtual services on demand.
Taxes for companies in Alabama
Besides the sales tax in Alabama, companies established in this state are subject to an income tax of 6.5%. Also, a privilege business tax is imposed on companies and partnerships in the state. The rate will depend on how much taxable revenue the business has. In addition to information about the USA company formation, one should request details about the taxation system in Alabama from our advisors.
The advantages of opening a business in Alabama
A company in Alabama is easy to register considering the minimum period of waiting and the bureaucracy which is lesser compared to other countries worldwide. According to the Alabama LLC Act, the owners can create categories of membership for which there are established the powers and rights of each member. We also mention that an LLC in Alabama can activate for an unlimited period of time. More than 15,000 companies are registered each year in Alabama, considering that LLCs are reliable, flexible and protected forms of businesses.
For additional information about the company incorporation in Alabama, please do not hesitate to contact our company formation representatives in USA.