Start Your Alabama LLC

Set up your LLC in Alabama without the hassle.
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if your business name is available in Alabama!

Alabama LLC formation woman with apron pointing at her open sign for her store

Benefits of opening an LLC in Alabama

There are many reasons to form an LLC in Alabama. Here are the main ones:

Legal protection in case of bankruptcy or lawsuits

Separation of personal and business assets 

Tax benefits: flexibility & pass-through taxation

Increasing credibility and trust for your business

How to get your Alabama LLC with Tailor Brands

Check if your LLC name is available in Alabama

Choose a registered agent for your LLC

Sit back and let us take care of the paperwork

How to start an Alabama LLC in 5 steps

Step 1: Name your Alabama LLC

You can name your LLC almost anything you want in Alabama. The state’s only specific requirement is that the name includes “Limited Liability Company,” “LLC,” or “L.L.C.”

Alabama allows business owners to perform many functions online at the Alabama Secretary of State (SOS) website for a small additional fee. You can check to see if a business name is available by visiting the SOS’s website. If you click on the “Business Services” menu on the main page, it will take you to a page with multiple search options. You want the link labeled “Business Entity and Name Search.” This will let you search to see if any other business in the state is using the name you want.

You can find more information on how to perform a Alabama Business Entity Search for your LLC here.

Step 2: Choose a registered agent

Every business entity organized in Alabama must designate an individual or business to serve as their registered agent in this state. A registered agent’s main job is to receive service of process and other notices for the business. The registered agent’s location is known as their registered office. If someone sues your business, for example, the process server will deliver the papers to your Alabama registered agent.

A registered agent must be:

  • An individual who resides in Alabama, or
  • A business entity organized under Alabama law or registered to do business in Alabama

The registered office must be a street address in Alabama, not a P.O. box or other mailbox service, where the registered agent is available to receive service of process and other paperwork. It does not have to be a location where your LLC does business.

You or another member may serve as the registered agent of your LLC. You may use your business address or your personal address as the registered office. Keep in mind that the registered office is part of the public record.

Step 3: File certificate of formation

Now that you have decided on a name for your business and reserved it with the state, you are ready to file the documents that will officially create your LLC. In Alabama, the main document that creates an LLC is known as the “Certificate of Formation.” The person filing the Certificate of Formation is the “organizer.” This person could be an owner of the business, officially known as a “member” of the LLC, or an authorized representative.

State fees

If you are forming a new LLC, the Alabama SOS charges a $200 filing fee for a document known as the Certificate of Formation. Online filing includes an additional $8 fee, for a total of $208.

Requirements

The information that you will need for your Certificate of Formation includes:

  • The name of your business, which must include “Limited Liability Company,” “L.L.C.,” or “LLC”​
  • A copy of the Name Reservation Certificate that you filed with the SOS​
  • The name and address of your registered agent in Alabama (see Step 3, below)​
  • The name of the person who prepared the Certificate of Formation​
  • The signature of the LLC’s organizer​

How to file

You may file the Certificate of Formation online or by mail. To file online, go to the “Business Services” section of the Alabama SOS website and click the “Domestic Formation” link. This will take you to the online submission page, where you can input the required information, upload documents like the Name Reservation Certificate, and pay the filing fee.

You can submit the Certificate of Formation by mail to the following address: Alabama Secretary of State, Business Services, P.O. Box 5616, Montgomery, AL 36103. You can pay the filing fee by check, money order, or credit card. In addition to the original Certificate of Formation, you should include a copy of the Certificate and a stamped, self-addressed envelope. The SOS will return the file-stamped copy and a receipt to you.

Step 4: Create an operating agreement

Alabama does not require LLCs to have written company agreements.  Although Alabama does not require an operating agreement, having one can save you many future problems, so we consider it a must. An operating agreement may offer you more control over the way your business will be treated in case of dispute or legal action. Alabama does not set any specific requirements for the agreement although state law sets certain limits on what a company agreement can do, including:

  • It cannot change the legal nature of the company as an LLC
  • It cannot restrict the authority of a court over the company
  • It cannot waive the obligations of the company or its members under contract law and consumer protection law

Step 5: Apply for an EIN

The IRS issues Employer Identification Number (EIN) to businesses and other organizations. Please note that this is different from the Entity ID Number issued by the Alabama SOS for your LLC. In addition to its role as an identification number for tax purposes, an EIN is required for many of your business operations, including opening a business bank account or applying for a business loan.

The IRS states that you must have an EIN if your LLC meets certain criteria, including if you have employees or if you operate your business as a corporation or partnership. Every LLC with more than one member will operate similar to a corporation or partnership, as discussed further below.

You can get an EIN by yourself online or by submitting Form SS-4 to the IRS by mail or fax. Doing it online is the most straightforward, and fastest, way of doing it. From Alabama, you can mail the Form SS-4 to the following address: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999. You may also fax it to (855) 641-6935.

Creating an LLC in AL: The Basics

There are different costs to form an LLC in Alabama and maintain it. We’ve listed all of them in this post.

This step-by-step guide details the steps and requirements you need to know in order to name your Alabama LLC.

A registered agent is a mandatory step in your Alabama LLC formation process – learn more about the requirements.

This guide details which licenses and permits your LLC may need to obtain in Alabama and how to get them.

Why is Tailor Brands the Best LLC Service in Alabama

At Tailor Brands, we love nothing more than helping people start their business. We take care of the LLC formation and offer additional services so you can focus on launching and growing your business, while staying informed and compliant with state regulations.

Here’s why people choose to form their LLC with us:

Easy and intuitive

Our products are user friendly, all you need to do is answer a few questions about your business and let us take care of all the rest.

Friendly dashboard

Our platform is easy to use and is optimally designed to guide you through your LLC formation process and business journey.

Additional services

We offer more products to help you set and manage your business like registered agent, business licenses, and annual report.

FAQ

What are the steps to form an LLC in Alabama?
  1. Name your LLC in accordance with Alabama’s naming requirements and reserve that business name to get a Name Reservation Certificate.
  2. Choose and appoint a registered agent for your LLC.
  3. File a Certificate of Formation with Alabama’s Secretary of State (include other required documents).
  4. Create an operating agreement.
  5. Apply for an EIN.
  6. Research and comply with Alabama’s tax requirements.

The Alabama state filing fee for the Certificate of Formation is $200 for a domestic LLC and $150 for a foreign LLC. You also need to reserve your business name in advance to get a Name Reservation Certificate which is required to be filed with the LLC formation forms. The filing fee for the name reservation is $25.

To dissolve your Alabama LLC, you must file a Domestic LLC Articles of Dissolution form found on the Secretary of State website. A filing fee of $100 is required by the Secretary of State, in addition to a minimum of $50 in legal recording fees. You must file a completed original and two copies to a Judge of Probate in the county where the original Certificate of Formation was filed.

Form an LLC in Alabama, Hassle-Free

Limited Liability Corporation information from Tailor Brands

This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness.