The simplest and most typical type of company entity is a sole proprietorship. You don’t need to register with the state to begin conducting business in Alabama under your own name or a fictitious name (often referred to as a DBA or “doing business as”). The probate court in the county where your business is located will need to issue you a DBA certificate if you decide to operate under a fictitious name.
In Alabama, you must submit a form to the probate court and pay a fee in order to obtain a DBA certificate. Basic information about your company, including the name and address, as well as the name and address of the owner or owners, will be requested on the form. The probate court will issue a DBA certificate after you’ve submitted the form and paid the money, enabling you to lawfully conduct business under the name of your choice.
Depending on the type of company entity you select and how quickly you can gather the essential data and submit the required documentation, the process of registering a business in Alabama might take a few days to several weeks. For instance, the Alabama Secretary of State must receive the articles of formation and be paid in order to register a limited liability company (LLC). The Secretary of State’s office will analyze the paperwork to make sure it complies with state law, which might take several weeks.
In Alabama, you could also be asking whether you need a business license if you’re an independent contractor. The answer is based on the task you do and the environment in which you work. For specific sorts of enterprises in Alabama, some towns and counties require business licenses while others do not. It’s critical to confirm with your local government whether a license is required for the operation of your business.
Finally, you might be debating which is preferable for your company—an LLC or a sole proprietorship. Even though both choices have benefits and drawbacks, many business owners decide to set up an LLC because it provides greater liability protection than a sole proprietorship. With an LLC, the owner’s personal assets are typically shielded from business obligations because the company is a separate legal entity from them. However, creating an LLC is more difficult and expensive than running a sole proprietorship, so it’s crucial to carefully consider the advantages and disadvantages before deciding.
In Alabama, sole proprietorships are not required to be registered; but, if you prefer to conduct business under a fictitious name, you might need to obtain a DBA certificate. Depending on your location and kind of activity, Alabama’s business registration procedures might be time-consuming, and you could need a business license. The choice between a sole proprietorship and an LLC ultimately comes down to your unique situation and objectives.
When conducting business as a sole proprietorship in Alabama, you must register with the Alabama Secretary of State’s office before you engage in any action for financial benefit, including selling goods or services.