Incorporate in Alabama

Business owners form corporations to safeguard their personal assets from business debts and liabilities. A properly formed and managed corporation can give you the freedom to conduct your business without worrying that you might lose a home, a car, or any of your personal savings because of a business obligation. Benefits of Incorporating in Alabama:

• Protection from personal liability for business debts
• Perpetual existence, so the corporation continues even if an owner dies or leaves the business
• No limit to the number of C Corporation shareholders, who need not be U.S. citizens or permanent residents

Choosing Name for Your Corporation:
The name that you choose for a Alabama corporation must be distinguishable from any other registered or authorized Alabama business entity and any reserved names on record. The name of the corporation must contain one of the words as a corporate identifier: Corporation, "Company", "Incorporated", "Limited" or contain the abbreviation "Inc.", Corp.", "Co". or "Ltd."

Director Information
A corporation is required to have one or more directors. They are not required to live in the State of Alaska. They are required to be 19 years of age or older. Also, directors are not required to be listed in the articles of incorporation.

Officer Information
The officers are not required to be listed in the articles of incorporation.

Stock Information
The "standard" number of authorized shares in Alabama is 1000 shares, with "no-par" value. An increase in the number of authorized shares or par value may affect the initial filing fees.

State Filing Fees:
The minimum filing fee in the state of Alaska is $95.00.

Registered Agent
A corporation must maintain a registered agent at all times to accept any important service of process from the state. The registered agent must be located and available during regular business hours at a legal address within the state. Alaska prohibits the use of a P.O. Box as your registered agent's address.

Annual Filing Requirement
There is an Annual Report that must be received by the state of Alabama within 2 1/2 Months After Tax Year End. The fee for this filing is: $100.00

S-Corporations
Being an S-Corporation allows your business to "pass through" its income to the shareholders. This means that your business will not pay any IRS corporate level income tax. However, you'll have to claim your entire share of the business income on your personal federal income tax return even if you did not take any money out of the business. In Alabama, the law extends this favorable tax treatment to state corporate income tax liability and S corporations will not be subject to the corporate income tax.

For State of Alabama Processing Time CLICK HERE

READY TO INCORPORATE OR FORM S-CORPORATION?