Form LLC in Alabama
A Limited Liability Company (LLC) combines the tax flexibility of a partnership with the limited liability of a corporation. LLC typically protect your personal assets and avoid the "double taxation" of a corporation on shareholder dividends. Each member (owner) of an LLC reports their share of profit and loss in the company on their individual tax return. Benefit for Forming an LLC:
- Protection from personal liability for business debts
- Perpetual existence, so the LLC continues even if an owner dies or leaves the business
- Pass-through taxation allows owners to report profit and loss on their individual tax returns
- Owners need not be U.S. citizens or permanent residents
Choosing Name for Your LLC:
The name that you choose for a Alabama limited liability company (LLC) must be distinguishable from any other registered or authorized Alabama business entity or any reserved names on record. The name of the LLC must contain one of the words or abbreviation as a company identifier (“Limited Liability Company”, “LLC” or “L.L.C”).
Purpose:
Alabama does not require a specific purpose to be listed in the Certificate of Formation.
Members:
Members are not required to be listed in the Articles / Certificate of Formation. Alabama has the following membership requirements for an LLC
Number of members required: |
One or more |
| Residence Requirements: |
No Requirement |
Age requirements: |
Must be at least 19 years old |
State Filing Fees:
The minimum filing fee in the state of Alabama is $75.00.
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. Alabama prohibits the use of a P.O. Box as your registered agent's address.
Annual Filing Requirements:
There is an Annual Report that must be received by the state of Alabama 3 1/2 Months After Tax Year Ends. The fee for this filing is: $100.00
For State of Alabama Processing Time CLICK HERE
READY TO FORM LLC?
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