A Guide to Start an LLC in Alabama

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Looking to start an LLC in Alabama? We have you covered with the best guide to doing that. Follow these simple steps to start one: –

Step 1: Naming the LLC

This is the first and most imperative advance in beginning your LLC. Make certain to pick a name that consents to state naming requirements and is effectively accessible by potential customers.

The Guidelines to be followed while Naming

  • Your name must compulsorily include the phrase “limited liability company,” or one of its shortened forms (LLC or L.L.C.).
  • Your name has to exclude words that could mistake your LLC for an administrative organization or a government agency (FBI, Treasury, State Department, and so on.).
  • Restricted words (e.g. Bank, Attorney, University) may require extra paperwork and an authorized individual, for example, a specialist or legal counselor, to be part of your LLC.

Is the Name accessible in Alabama?

Ensure the name you want is available by doing a name search on the State of Alabama site.

The name should be Reserved

You should complete the full name reservation either Online or via Mail with the Alabama Secretary of State. (Charges: $28 on the web, $10 via mail).

Check if the URL is Accessible?

We recommend that you verify whether your business name is accessible as a web domain. Regardless of whether you don’t plan to make a business site today, you might need to purchase the URL with the end goal to keep others from securing it.

Check Your Domain Availability

powered by Namecheap

Once you register with your Domain, Google G Suite offers you Professional and Business Email Services.

Step 2: Selecting a Registered Agent

You are required to designate a Registered Agent for your Alabama LLC.

What is a Registered Agent?

A Registered Agent is a man or business that consents to send and get lawful papers in the interest of your LLC. Such papers have the service of legal action if one is used and multiple state filings.

Who can be a Registered Agent?

A Registered Agent must be an Alabama resident or a company approved to execute Business in Alabama. You may choose a person inside the organization including yourself.

Incfile helps in LLC formation

Step 3: Filing the Certificate of Formation

To register the LLC, one will need to file a certificate of formation with the Alabama State. This can be done by mail or online

Filing Online
Select non-subscriber and fill the form
File by Mail
One should mail following documents to the Office of the Judge of Probate

  • One original certificate of formation document
  • Two completed copies
  • A check of $100 payable to the secretary of state.

An amount of $100 through Mail or $200 through Online is payable to Secretary of State + a county probate judge fee, it is Nonrefundable.

For Further Information contact Probate Officer

Step 4: Creating an Operating Agreement

Though an operating agreement is not required in Alabama, it would be advisable to have one. It becomes important as it ensures all owners are on the same point and will reduce the risk of any future conflict.

Step 5: Obtaining an EIN

Getting an employer identification number for identifying a business entity is important. This can be defined as a social security number.

  • For federal and state tax purposes
  • To open a business bank account
  • To hire employees

Request an EIN from the IRS
Apply Online
Mail Address: 
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Download Form Here
It is Free of Cost.

Step 6: Steps One should do after Forming a Business

Open a Business Bank Account

Using a devoted business account and credit account is basic for personal resource security. At the point when your own and business accounts are mixed, your own assets (your home, auto, and different assets) are in danger in the occasion your LLC issued. In business law, this is alluded to as penetrating your corporate shroud.

Should Set up Accounting

It is important to have a well-managed accounting system that will

  • Simplify your tax filings
  • Track your business and income

Quality accounting software can do that for you. An ideal one is which-

  • Makes it easy to work with
  • Can be accessed from the phone
  • Syncs with bank

Registration for Tax Purposes

One may need to be registered for state tax depending on the nature of the business.

  • Sellers permit if you sell a physical product
  • Unemployment insurance tax if you have employees
  • Withholding tax as per the Alabama department of revenue

One should Obtain Permits and Licenses

To effectively operate LLC, you need to work with federal, state and various regulators. Some of whom may require an exam, charge some fees or take classes. Taking professional service research is important to fulfill the right licensing requirements.


Business insurance is important to help you get risk managed and focus on growth. Common types are-

  • General liability insurance
  • Professional liability insurance
  • Workers compensation insurance

Follow the Right Laws

If hiring any employees, one should stay compliant with the law

  • Verify if they are legal in the US
  • Report them as new to the state
  • Withhold employee taxes
  • Provide worker compensation insurance
  • Let them know the rules

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