Licensed professionals including doctors, lawyers, and accountants frequently use a professional limited liability company (PLLC), a form of corporate entity. It enables professionals to keep their licenses and remain in line with industry standards while providing the liability protection of an LLC. Writing a PLLC is an easy task that can be finished in a few quick steps.
Step 1: Select a Name and Determine Availability The first step in creating a PLLC is to give your business a name. Your company name should accurately describe what you do while still being distinctive enough to set you apart from the competition. Once you have decided on a name, you should confirm that it is not already in use by contacting the Alabama Secretary of State.
Step 2: Submit Articles of Incorporation Articles of Organization must then be submitted to the Alabama Secretary of State. The names, locations, and membership of your PLLC are all listed in this paper. There is a charge for filing this paperwork, and you can do it either online or by mail.
Step 3: Write an operating contract The ownership and management structure of your PLLC is described in an operating agreement, a legal document. Although it is not required by Alabama law, it is strongly advised since it can assist resolve conflicts and make clear each member’s roles and obligations. You have the option of creating your own operating agreement or hiring a lawyer.
Obtain an EIN number in step four. Your PLLC is given an EIN (Employer Identification Number), a special nine-digit number by the IRS for tax purposes. Filling out a Form SS-4 will allow you to apply for an EIN number, which is required to create a business bank account, hire staff, and file tax returns.
What are the drawbacks of an LLC? Being a pass-through entity, which means that the profits and losses of the firm are distributed to the individual members and taxed at their individual tax rates, is one of the fundamental drawbacks of an LLC. Some members may face a larger tax burden as a result of this. Additionally, because LLCs are unable to issue shares, they are not the best for obtaining funds. How long does it take for an Alabama LLC to get approved? Depending on the type of filing, Alabama’s processing time for LLC filings varies. Paper filings can take up to 10 business days to be processed, whereas online submissions are normally processed within 24 hours. Additionally, how long does it take in Alabama to form an LLC?
The length of time it takes to form an LLC in Alabama is determined by how quickly you can go through the required procedures. An LLC can be established in a few days if you have all the necessary data and paperwork on hand. The procedure can take longer, though, if licenses or permits are required. How can I obtain an EIN number in Alabama? You can submit an application for an EIN number in Alabama online or by mail by completing a Form SS-4. Basic information regarding your PLLC, such as its name and address, must be provided. Your EIN number, which you can use for taxes and other business purposes, will be provided to you once your application has been finalized.
A series LLC is a type of limited liability corporation (LLC) in Alabama that enables a single LLC to establish distinct “series” inside the LLC, each of which has its own unique assets, liabilities, and members. For firms or investors who want to divide their assets and liabilities among various projects or properties without having to establish up separate LLCs for each one, this structure is especially helpful. One of the few states that permits the formation of Series LLCs is Alabama.