Our Guide to Starting an LLC in Alabama

Alabama is an easy state for forming an LLC, and it only takes a few minutes to complete the forms and pay the required fees. However, forming an LLC in Alabama is a bit different than in other states, namely because the LLC formation requirements vary by county.
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The website of the Alabama Secretary of State provides county-by-county instructions on how to form an LLC. One of the benefits of forming an LLC in Alabama is that the state's filings are submitted electronically, which makes the process fast and smooth.

​What You Need to Know to Form an LLC in Alabama

In order to form an LLC in Alabama, you'll need to follow these steps:

Step #1: Name Your LLC 

The very first thing you need to do when forming an LLC in Alabama is to choose a unique business name. By that, it means the name must not be registered by any other company, though you can easily check its availability by searching for other business names in Alabama. 

You can reserve a business name by completing the Alabama LLC Name Reservation Request Form, which will process for about a week and comes at a cost of $10. Alternatively, you can also file online and pay $28, and the best part is that it processes it faster, so you can expect the name to be available as soon as you pay the fee. 

Once you complete this step, you will get a Certificate of Name Reservation, which is another critical document for processing the rest of your LLC paperwork. 

Step #2: Appoint a Registered Agent to the LLC

The next step in forming an LLC in Alabama is to appoint a registered agent in the state. The registered agent manages communications and operations for your state, and it is strongly recommended that you appoint a resident of Alabama to act as your registered agent.

Step #3: File the Alabama Certificate of Formation

Once you have your name and registered agent, it's time to file your LLC paperwork. The Certificate of Formation is the key document that allows you to establish your LLC, and without this document, your LLC cannot start operations.

You can either download it and file online with the Alabama Secretary of State or mail it to them. If you opt for mailing the Certificate of Formation, keep in mind that your answers need to be typed out with an attachment of your Name Reservation Certificate. 

This process can last for two weeks, though you can fast-track the processing by paying an additional $100 and reduce the filing time from ten days to three days. 

The Bottom Line: The Importance of Filing an LLC in Alabama

As soon as you file for LLC formation, the business is considered to be active in the state. The State of Alabama will also send you a Certificate of Authority to operate your business, and you will need this vital document to carry out transactions.

Apart from that, you will also be sent your LLC's EIN (Employer Identification Number) for tax filing purposes. This number is different from your social security number, and it's important for LLCs to have this number to file taxes in your state and the IRS.

How Can We Help You?

Doola's main goal is to help unlock the potential of human entrepreneurship and democratize access to wealth creation, all while empowering individuals to turn their dreams into reality—their dream US business.

If you need assistance with growing your business, how to prove LLC ownership, or need help opening a US business bank account, reach out to us today!

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Doola's website is for general information purposes only and doesn't provide official law or tax advice. For tax or legal advice we are happy to connect you to a professional in our network! Please see our terms and privacy policy. Thank you and please don't hesitate to reach out with any questions.

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