What kind of legal entity to choose will be one of your first choices if you’re starting a business in Alabama. A limited liability company (LLC) appeals to many business owners because it combines the advantages of a corporation and a partnership while avoiding some of their disadvantages. However, you must go through the formation process before you can benefit from an LLC. What you should know is as follows.
You must follow a number of processes in order to create an LLC in Alabama. To begin with, you must select a name for your company that complies with Alabama’s laws and regulations. The name must stand apart from those of other businesses registered in Alabama and must conclude in “LLC” or “L.L.C.” You can use the online database of the Alabama Secretary of State to see if your desired name is available.
The next step is to designate a registered agent who will receive court summonses and other crucial paperwork on your LLC’s behalf. The registered agent must be an Alabama resident or a company that is permitted to conduct business there.
The website of the Alabama Secretary of State also offers online LLC formation. The online procedure might save you time and effort and is quite simple. You must still submit all the relevant paperwork and make the required payments, though.
After completing the aforementioned requirements, you must submit a Certificate of Formation to the Secretary of State of Alabama. The name and address of your LLC, the name and address of your registered agent, and the names and addresses of your LLC’s members are all included in the Certificate of Formation, a legal document that formalizes the formation of your LLC.
The Certificate of Formation may be submitted online or via mail. Currently, the filing price is $100. Although processing timeframes can vary, online filings are often processed more quickly than filings via mail. Online filings normally take one to three business days to process, while mail-in filings might take up to 10 business days.
After establishing your LLC, you’ll need to create a business bank account, apply for any appropriate licenses and permissions, and take other actions to get your company up and running. Additionally, you will be required to submit a yearly report to the Alabama Secretary of State and pay a $100 annual fee.
In conclusion, creating an LLC in Alabama entails adhering to a particular set of guidelines and going through a number of stages to finish the procedure. Although you can create an Alabama LLC online, you’ll still need to fill out the forms and pay the expenses. The filing procedure and processing timeframes can affect how long it takes to incorporate an LLC in Alabama. The Certificate of Formation, which is the last important document and which must be submitted to the Alabama Secretary of State, formalizes the formation of your LLC.
Yes, in order to maintain the LLC’s good standing in Alabama, each LLC must submit an annual report and pay a fee to the Secretary of State’s office by the deadline. The fifteenth day of the fourth month after the conclusion of the LLC’s fiscal year is when the annual report is due. For instance, the annual report and fee are due by April 15 of the following year if an LLC’s fiscal year ends on December 31.
Single-member LLCs, multi-member LLCs, domestic LLCs, and international LLCs are the four different forms of LLCs.