How to Open an LLC in Alabama

Updated on Wednesday 02nd June 2021

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An LLC in Alabama can be easily established with complete support offered by one of our company formation agents USA who are at your disposal as soon as you decide for doing business in this American state. There are a few requirements to consider when opening a limited liability company in Alabama, and among these, making a company name reservation in Alabama, in order to have your business protected from any kind of infringement. The USA company formation is not a difficult process, however, you should ask for support and assistance from our team.

What are the main steps for opening an LLC in Alabama in 2021?

A limited liability company in Alabama can be incorporated with the Alabama Secretary of State, once a name verification is made in the first place. The name reservation in Alabama can be made online for a fee of approximately USD 28 or using the Name Reservation Request Form for Domestic Entities which is normally sent by postal mail. Once the name of your business is available and accepted, one must pay attention to an important condition and that is to place LLC, L.L.C. or Limited Liability Company at the end of it. Below you can find information about the main conditions for opening a limited liability company in Alabama:
  1. A representative agent needs to be appointed for your LLC in Alabama, in charge of the documents. This can be an Alabama resident, a foreign entity with establishments in Alabama or an Alabama entity;
  2. The Certificate of Formation needs to be filed with the County Probate Court and then sent to the Secretary of the State of Alabama;
  3. The operating agreement is recommended for opening an LLC in Alabama;
  4. The registration for tax purposes in Alabama is mandatory for your LLC;
  5. The EIN or the Employer Identification Number is issued by the IRS (Internal Revenue Service) for your LLC in Alabama;
  6. The company can start the activities if the needed licenses and permits are obtained;
  7. Make sure you get in touch with our company formation agents in USA and solicit assistance for opening an LLC in Alabama in 2021.

 What does the Certificate of Formation of an LLC in Alabama comprise?

The name of the business, the name of the registered agent for your LLC in Alabama, the date the company starts its activities, a copy of the name reservation certificate and the signature of the attorney-in-fact must be comprised in the Certificate of Formation. Bear in mind that approximately USD 150 represents the filing fee necessary to the Probate Court and the Secretary of State. Complete support for preparing and drafting the company’s documents can be provided by one of our company formation specialists in USA. If you want to start a business in USA in 2021, do not hesitate to talk to our experts.

The operating agreement for an LLC in Alabama

Even though the operating agreement is not mandatory for a limited liability company in Alabama, it is highly recommended. All the responsibilities and the rights of company owners and managers, plus how the business can be controlled are normally comprised of the operating agreement. On the other hand, the state LLC law in Alabama governs the ways in which an LLC can be operated, if the above-mentioned agreement is not created. Feel free to talk to us and find out more about how you can open a limited liability company in Alabama and respect the rules for 2021.

Foreign LLCs in Alabama

Limited liability companies that are registered outside Alabama, but wanting to have businesses in this state, must be registered with the Secretary of the State of Alabama and the Business Entities Division. The same rules need to be respected for opening an LLC in Alabama, and it all starts with the name reservation in Alabama. It is good to know that the registration can be made online, with complete support offered by one of our specialists in company formation in USA who can supervise the entire process right from the beginning. The foreign entity registration in Alabama starts with a specific application form which needs to be accompanied by a copy of the name reservation, issued by Alabama Secretary of State.
Investors looking for business in Alabama might find interesting the following information, statistics, and facts:
  • according to recent statistics for 2019, there are approximately 324,000 small businesses registered in Alabama;
  • more than 84,000 small companies in Alabama have employees;
  • there are around 194,000 sole proprietorships in Alabama;
  • in terms of economy, the city of Birmingham in Alabama developed extremely fast in recent years, gaining the name of “Magic City”, the only one having raw ingredients to make steel.
If you would like to start an LLC in Alabama in 2021, feel free to contact our company formation agents in USA for complete details and support.