Forming an LLC in Alabama
Forming an LLC in Alabama in 7 easy steps
- Select a suitable name for your company. According to Alabama state law, you are only allowed to use the words “engineer”, “trust”, “bank” or “banking” if you have obtained special license from the state to do so. You must also refrain from violating trademark law and you cannot use a name that is already used by another LLC. In addition to this, the name must include an LLC identifier that makes people aware that your company is a limited liability company. You can for instance attach the abbreviations “LLC” or “Ltd Liability Co” to your company name, such as “Alabama Ice Cream LLC”.
- Hire an attorney to check your Operating Agreement. This is not required by Alabama state law, but it is advisable to do so anyway because improperly written Operating Agreements have brought IRS problems upon many LLC’s. Spending some money on an attorney can save you a lot of money in the long run.
- File the Articles of Organization for your LLC at the Alabama State filing office and pay the filing fee. In Alabama, the minimum LLC state filing fee is $90.00. (For 40 business days.)
- Have an Organizational Meeting where the members (owners) of the LLC come together and adopt an Operating Agreement for the company.
- Apply for a Federal Employer Identification Number (FEIN) for your LLC.
- Open up a company bank account.
- Obtain any necessary business licenses and permits for each city or county where you will be active.
Maintaining an LLC in Alabama
According to Alabama state law, your LLC must hand in a report each year and pay an annual report fee of $40. The annual report must not be handed in later than 3.5 months after the end of the fiscal year.
