Which legal structure to use will be one of your first options if you’re starting a business in Alabama. Due to its adaptable management structure and liability protection, a Limited Liability Company (LLC) is a well-liked option among business owners. In this post, we’ll go over the price to incorporate an LLC in Alabama, the registration procedure, how long it takes, and other crucial details.
In Alabama, establishing an LLC costs $150. The Secretary of State must be paid this filing fee when the LLC’s Articles of Organization, which legalize its formation, are delivered. The articles of organization can be submitted by mail or online. You must enclose a check or money order for the filing fee if you opt to file by mail. Additionally, there is a $100 extra charge for expedited processing. How can I set up a company in Alabama?
You must do the following actions in order to register a business in Alabama: 1. Make sure the name you choose for your company complies with Alabama’s naming regulations. The name must be original and unheard-of.
3. Submit the articles of incorporation to the secretary of state for Alabama. Your LLC is formally created by this document.
4. Obtain all essential state and local business licenses and permits. You might need to apply for a state tax ID, a sales tax permit, or additional licenses depending on your industry and area. 5. Sign up with the Alabama Department of Revenue to file taxes.
Depending on how you file, Alabama LLC formation can take a while. The processing time for online filings is normally two to three business days. The processing time for mail-in filings is 7–10 business days. You can pay an extra $100 for 24-hour processing if you need faster service. Do you need a registered agent in Alabama?
Yes, an LLC must have a registered agent in Alabama. A registered agent is a person or business that accepts legal paperwork on your LLC’s behalf. In order to receive legal documents, the registered agent must have a physical address in Alabama and be accessible during regular business hours. You can appoint a member of your LLC to act as the registered agent, or you can use a registered agent service.
An LLC might be more expensive to establish and operate than other legal arrangements, which is one of its drawbacks. LLCs are required to file annual reports and other documents, and failure to do so may result in fines or even the dissolution of the LLC. A different legal form may be preferred by investors, therefore LLCs may not be the ideal option for companies that intend to raise venture financing or go public.
In conclusion, creating an LLC in Alabama is a reasonably simple process that costs $150 to execute. A registered agent is necessary for LLCs, and the registration procedure usually takes a few days to a week. Although there are certain drawbacks to adopting an LLC, many business owners find it to be a desirable option because to its adaptability and liability protection.
You can submit an application for an EIN number in Alabama online through the IRS website, by mail, or by fax using Form SS-4. Your LLC’s legal name, postal address, and the name and Social Security number (or Individual Taxpayer Identification Number) of the accountable party must all be provided. To apply for an EIN number, you can also call the IRS Business and Specialty Tax Line at 1-800-829-4933.