What form of business structure to select is one of the most crucial considerations you’ll need to make if you’re an entrepreneur hoping to launch a company in Alabama. A Limited Liability Company (LLC) is one of the most well-liked solutions since it protects owners from personal liability while yet enabling pass-through taxation. What you need to know if you want to form an LLC in Alabama is listed below.
Select a Name for Your LLC in Step 1 To create an LLC in Alabama, you must first decide on a name for your company. Make sure the name you choose is original and has not been taken by another company in Alabama. The Alabama Secretary of State’s company name database can be searched to see if a name is available. Once you’ve located an available name, you may reserve it with the Alabama Secretary of State for up to 120 days by submitting a Name Reservation Form.
Step 2: Submit Your Articles of Incorporation You must submit Articles of Organization to the Alabama Secretary of State in order to establish an LLC there. The name of your LLC, the name and address of your registered agent, and the names and addresses of each member of the LLC must all be listed in the Articles of Organization. Articles of Organization can be submitted online or by mail. Alabama charges a $100 filing fee for LLCs.
Obtain an EIN in Step 3 Employer Identification Numbers, or EINs, are special nine-digit numbers given out by the IRS to identify your company for tax-related purposes. An EIN is required to register as a business, hire staff, and file taxes. Applying online through the IRS website will get your LLC an EIN. Step 4: Register a DBA (if Required) You must submit a DBA, or “doing business as” name, with the Alabama Secretary of State if you intend to run your LLC under a name other than its legal name. By doing this, you’ll be able to utilize the name you’ve picked for branding and marketing initiatives. In Alabama, registering a DBA costs $30.
In Alabama, how much does it cost to form an LLC?
As previously stated, Alabama charges $100 for the filing of articles of organization. If you decide to use a business formation agency or an attorney to assist you in creating your LLC, there can be extra expenses involved. Additionally, there are continuous costs associated with managing your LLC, such as state taxes and annual report fees.
How Long Does it Take in Alabama to Form an LLC?
Several variables, including how quickly you complete your papers and how long it takes the Alabama Secretary of State to process your application, can affect how long it takes to form an LLC in Alabama. Usually, it takes 1-2 weeks to get a confirmation that your LLC has been formed. For an extra cost, you can pay for expedited processing if you need your LLC formed more quickly.
In conclusion, establishing an LLC in Alabama is a simple procedure that can be finished in a limited number of steps. You can confidently start your Alabama LLC by following these procedures and adopting the appropriate safety precautions.