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.
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