Form an LLC in Alabama in No Time, 100% Free of Charge

Before you can start your new LLC in Alabama, it’s important to choose a name for it. The business name you choose for your LLC must be unique and also comply with the LLC naming rules of the state of Alabama.

Some things to keep in mind include:

• The name must use LLC, Limited Liability Company, or L.L.C.
• You must choose a unique name that’s not used by any other business in the state. Verify this with the state’s business name database.
• Don’t use restricted words (like bank) and the name must not include any names of federal agencies like CIA, FBI, etc.

Once you’ve chosen a business name, you need to reserve it to ensure no other company ends up picking it before you do. You can file an application to reserve your business name for up to 90 days. It’s also possible to renew this duration.

Additionally, it’s important to purchase a domain name for your business. It’s also a good idea to claim your social media handles before anyone else does. Also, file for a DBA (doing business as) if you want to use a different name for marketing purposes.

The state of Alabama requires businesses to have a registered agent within the state who can receive documentation and legal communications on their behalf. While you can be your own registered agent, you’d have to be present at the registered office during all normal working hours. 

Instead, you could hire a registered agent via Tailor Brands and have them receive the communication for you. They’ll even share the received communication with you instantly so you can act upon it.

This is especially helpful for foreign LLCs that may not have an office in the state of Alabama.

When you start your LLC in Alabama, you’ll also need to choose your LLC type. Now, this decision may be simple if you’re starting a new business. You’d have to opt for a domestic LLC. But if you have a business in another state, you could choose to start a domestic or foreign LLC. 

Make your choice well as the filing fees for foreign LLCs are just $150 while domestic Alabama LLCs will cost $200.

To formally start your LLC in Alabama, you have to file your Certificate of Formation with the Secretary of State. This is essentially the Articles of Organization.

You’ll need to prepare your Alabama LLC Certificate of Formation and submit it to the Secretary of State to get your LLC formation process started. Tailor Brands will handle this process for you, so all you have to do is provide the required documents and information and you’re good to go.

You’ll also need to create an LLC Operating Agreement for your business in Alabama. This document essentially outlines how your LLC will conduct business. It includes things like:

• Roles and responsibilities of the LLC members
• Name and address of the Registered Agent
• Whether the LLC will be managed by members or managers
• Contribution of members and their share of profits
• Procedure to add or remove members from the Alabama LLC

The Operating Agreement comes in handy when any organizational issues pop up. It’s also a handy document that helps keep your organization’s operations running smoothly. If you don’t have an agreement in place, the courts will take decisions related to your business in case of any legal disputes within the members.

Your LLC in Alabama isn’t legally formed until now. While you’ve filed and submitted your Certificate of Formation to the Secretary of State, your business only starts legally when this certificate is approved. 

So, once the Secretary of State approves your application, you’ll receive your Certificate of Formation confirming your LLC formally exists in the state of Alabama. You have to use this certificate to apply for your business bank account and EIN, among other things.

If you want to hire employees or conduct even the most basic business transactions like sending and receiving payments, you’ll need to get an Employer Identification Number (EIN). This is basically your LLC’s federal tax ID number. It’s necessary to get an EIN for every LLC in Alabama, so make sure you apply for it before you start your operations.

It’s imperative that you open a separate bank account for your business to conduct transactions for it. This will help keep your business and personal finances separate—something that’s important to maintain the limited liability cover of LLCs. 

By opening your business bank account, you’ll be able to make and receive payments for your products or services. To open one, you’ll need to submit your Certificate of Formation, EIN, and other personal identification documents as requested by the bank. 

The state of Alabama requires you to keep certain important documents in your registered office. Some of the documents you need to have in your LLCs office include:

• A list of all the members of your Alabama LLC along with their updated addresses.
• A copy of your Certificate of Formation along with any amendments that you may have made.
• Your LLC’s Operating Agreement or its copy.
• Any financial statements you’ve filed with the Department of Revenue. 

It’s important to keep these documents handy in your office to remain in good standing with the state and ensure smooth business continuity. 

While your LLC may be operational by now, it’s important to get certain licenses and permits for it to operate legally. These will completely depend on the nature of your business and you’ll need to check if you need these licenses at both the state and federal levels. 

For instance, you may need a fire safety license if you run a restaurant or eatery. Similarly, if you intend to serve liquor, you may need a liquor license from the state. 

Every business in Alabama is required to file an Alabama Business Privilege tax return with the Department of Revenue according to Alabama Law. This must be done on or before 3.5 months of the tax year for your new LLC in Alabama. 

The rate of Business Privilege tax varies in Alabama based on the revenue of your new LLC. So make sure you’re representing your revenues accurately in your return and paying the relevant tax to keep your business in the good books of the state of Alabama.

Apart from LLC formation, you’ll also get the following:

• Annual Compliance: If you run an LLC in Alabama, it is necessary to meet numerous continuous compliance requirements. This includes paying taxes on time, among other things. Failure to meet these obligations could result in severe penalties. Tailor Brands’ team will keep you informed by sending reminders and annual compliance notifications to help you avoid missing any deadlines.

• 2-Day Processing: Another key highlight of this plan is the expedited processing of your application. Clients on this plan can expect a quick processing time of 2 business days. This provides a significant benefit since the regular processing times could be lengthy due to the large number of applications in the pipeline. This will ensure that your Alabama limited liability company is up and running in no time.

• LLC operating agreement: When you choose this plan, you will receive support in developing a comprehensive operating agreement for your Alabama LLC. Its team of experts will aid you in the drafting procedure and guarantee that you cover all essential aspects. This includes regulations and guidelines regarding decision-making within the LLC, member duties, the conflict resolution process, and more.

• $30 Amazon gift card: One of the perks of choosing this plan by Tailor Brands is that you get a free Amazon gift card for the amount of $30. You may use it to buy something for yourself or purchase something you need for your new LLC in Alabama. Given that you only need to pay $199 per year to get so many services, it’s already a good deal. It’s sweetened further when you get $30 back instantly.

Price: $199 per year

The Elite plan offers many other business services and benefits, apart from what you get with the Essential plan.

Here are the additional services you can expect.

• Website domain: Starting an LLC in Alabama involves numerous tasks and launching a business website is one of those. You need a domain name that matches the name of your LLC in Alabama and a reliable hosting provider. Tailor Brands can help you find the right web domain for your business and allow you to use it for free for the first year. After that, you will need to pay for it, of course.

• DIY website builder: Creating a website from scratch is not easy, but with the right tools it’s doable. If you don’t want to spend extravagant sums of money on website design, simply do it yourself. Tailor Brands will equip you with a DIY web design tool that you can use to design the perfect website for your LLC in Alabama. The best part is that you don’t need any prior coding experience to do that.

• Logo Maker and Other Business Tools: Tailor Brands offers numerous tools you can use for marketing and branding purposes for your LLC in Alabama. You can, for example, get a digital business card for your Alabama LLC or a logo designed for branding your business. It also offers a tool that helps you create social media posts to boost your business presence on social media.

• $50 Amazon Gift Card: Similar to the gift card you get with the Essential plan, you also get one with the Elite plan, just of a higher value. This is great because you instantly get some of your money’s worth, even before you start utilizing the company’s services. As mentioned earlier, this is not restricted to business purchases. You can buy anything from the online store for business or personal use.

Price: $249 per year

Tailor Brands also offers numerous business services you can pay for individually, on an as-needed basis.

Here are some of the many services you can get with Tailor Brands.

• Business Licenses: It is plausible that you will need numerous business licenses and permits for your LLC in Alabama. Tailor Brands is prepared to help you navigate the requirements for your business and obtain the essential licenses you will need to run an LLC in Alabama.

• Employer Identification Number: Any business that has employees and pays employment taxes will need a tax ID or EIN. If you need help getting one for your LLC in Alabama, Tailor Brands can help. Contact its team to find the exact price for this service, which includes complete application filing.

• Bank Account and Insurance: Want to start a bank account for your business or get your new LLC in Alabama insured? Tailor Brands offers both of these services separately, for different prices. Consult with the team at Tailor Brands to discuss your requirements and get a price quote.

• Tax, Accounting, and Invoicing: Lastly, Tailor Brands offers various tax and accounting services, from tax filings to consultation. If you need someone to manage the books for your LLC in Alabama, Tailor Brands can help. It also helps you manage invoices and send custom invoices and proposals.

Price: Price differs per service