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in this video i'm going to teach you how to form an llc with the state of alabama we're going to do it online we're going to do it together and i'm going to teach you how to complete the entire process in less than 10 minutes for free so let's get started so you finally started your own business invest for the long term and i'll show you exactly how be good to future you hey this is the alabama secretary of state website to get here you go to sos.alabama.gov sos.alabama.gov this will take you to the alabama secretary of state website this is how you file llcs llcs get filed with the state eins get filed with the federal government we're not going to talk about eins in this video we're simply going to be talking about llc's so let me show you how to get started first things first you need to make sure that your name isn't taken so you need to go over to services business entities and then you need to go to online services and then we're going to go over here down to business entity and name search this is important because names are state specific and you can't have the same name as somebody in the same state you can have the same name as somebody who's in florida if you're applying in alabama but not in the same state so let me show you what it means to search to see if your name is taken so what you want to do is you want to search the business entity name it's going to pop open a new tab and it's going to give you some records that you can input so you can search by name by type of entity by place by city et cetera but what we're going to do is we're going to search for joe's plumbing llc just like this who knows we get results back and it shows us that there's an entity id for an llc already established as joe's plumbing in the state so it exists so we can't use joe's plumbing let's try joseph's plumbing no match is found okay so you can be joseph's plumbing llc but you can't be joe's plumbing llc that's how you find out if your name is taken with the secretary of state so now that we know we're going to go back to the very beginning where we were at the website we know our name's available so let's use that name to apply for an llc we're going to use joe's plumbing so go over here to services and go down to business entities and then online services we do not want to submit all this information by mail because it's way too slow we want to fill this out online we've already done the name search so let's go all the way down here to domestic business filing domestic means that you're there present in the state so that's the option that we want to use domestic business filing click on it we're going to go to domestic formation we're not going to dissolve a company that's what dissolution's for we're going to form one let's click on that boom here we go it gives us all the fees and lets us know how much it's going to cost for what so we can reserve our name if we're not ready to file the llc yet you can just reserve the name by paying this 25 here but if you are ready you can do a domestic filing and so you can see the total fees are about 208 dollars to form an llc on your own now if you're a foreign person and you don't live in alabama or you live outside the united states and you want to file for an llc within alabama you would choose the foreign filing option one more thing to add they have subscribers and non-subscribers that just means if you whether or not you have an account on this website we can go with a non-subscriber and we can just go forward for there so now we're going to put in all of our contact info and i'm going to blur out a majority of this contact info because i don't want you guys to have my address so i'm gonna start using um let's see i'm gonna use evan van schmacken put in a primary phone number we got a no fax number we'll put in the email address our address down here and we're gonna hit continue new name reservation okay so here is the name reservation part if you had a name reservation already on file you can type it in here you put reservation id that's the one you paid 25 bucks for but you probably don't so we're going to put in the name requested which is going to be joseph's plumbing llc boom we're going to hit continue so the type of reserve reservation right here are we going to do domestic or are we going to do foreign so we're going to do domestic because we're going to be do everything inside the state of alabama now if you live in alabama and you plan on doing sales outside of alabama like nationwide that's okay too you can do that that's fine we just need to get the llc registered where your principal address is the address that you're using to accept mail and the address that you're using for your business so that's why we're choosing domestic now here's another question that a lot of people get confused on the type of entity so most people are not going to choose corporations corporations just aren't good for people limited liability companies offer you the most protection and they're easier cheaper and better you don't have to issue stock you don't have to split it up you don't have to do certain record-keeping stuff like meeting minutes and things like that when you form an llc but you do when you form a corporation so take my word for it and if you want to learn more about corporations and llcs and the differences you can sign up for my business course there's a link below i go into great detail on all this stuff in my business course i teach you exactly what each entity is so that you can choose what works best for you so for sake of discussion we're going to go with llc limited liability company we're not going to go with a partnership or a limited partnership or any of these other things they just don't fit well ninety percent of people will choose limited liability company when in doubt go llc that's a good way to look at it when in doubt go llc i have five companies all of them are llc's weird flex but okay so we have joe's plumbing llc and when you're typing in the name it has to have llc at the end okay it has to have llc or l.l.c it has to have something like that you can't use any of these words in the name and you can't use any of these et cetera you can't use engineer unless you're an engineer etc anyways these this is just giving you some extra information on what alabama tells you is uh this just gives you information on what alabama will accept as a name for your llc joseph's plumbing llc is perfectly fine or filing online they want to ask if we want to reserve the name only or if we want to file the formation data now the formation data it means that we're submitting our articles of organization to the state of alabama to turn it into an entity that's what we want to do file formation data okay we are going to be filing it as an individual and we're gonna put our own name there we're gonna i'm gonna blur out the address once again so you what you can do here is just put in your address your mailing address that's perfectly fine and now we have the original requester information so you want to make sure this name is correct want to make sure the information is correct and i
Thanks for your comment Theo Dilello, have a nice day.
- Lupita Posada, Staff Member
ready to incorporate an llc in alabama but unsure where to begin today you will learn about the most common ways to start your business including the correct forms you'll need how to register your llc critical naming requirements and all other important tips and tricks then as a bonus later on in the video i will reveal to you a trustworthy registered agent who will help set up your llc for free so make sure to stick with me until the end alabama llcs are cost effective and easy to set up the state of alabama like other states has several specific llc requirements there are three main ways you can start an llc in alabama first is the diy or do-it-yourself process where you mostly depend on alabama state's website the second way is hiring a professional service that practically offers more efficiency and security in the process of creating your llc while the third one is hiring an attorney we will skip the attorney hiring portion because that's expensive and most business owners won't need that service first let's take a look at the steps required for starting an llc on your own step one name your business before anything else you will have to think of the llc's legal business name each llc in alabama must have a distinct llc name that is not currently in use you must include the terms limited liability company or an abbreviation such as llc you cannot include phrases such as a corporation which would lead people to believe you are a different business organization knowing if your business name is taken or not is very easy just go to google and type in the words business entity records alabama secretary of state and click the first search result i also have the link in the description below for your convenience it will lead you to a landing page of business entity records in alabama scroll down a little and you will see some search options which makes checking the availability of your business name easier generally you can click the first option entity name and type in your business name for example i am typing a very common business name here car wash express which will give you a list of existing business names a unique business name will say no match is found just like this random name i typed in step 2 alabama requires llc to have a registered agent an agent has a physical address a po box is not allowed and is available during business hours this agent will serve as the llc's primary point of contact for receiving key legal papers tax warnings summons subpoenas and so on you can register yourself or someone in your company but i highly recommend getting a professional registered agent as they have more knowledge by protecting your company in cases of possible cracks while i agree that family members or friends are reliable enough to be trusted as your llc's agent you are more comfortable sleeping at night knowing that your agent is professional and trained to manage legal documents to avoid problems concerning court schedules filing reports with the secretary of state etc besides hiring a professional registered agent is not expensive in fact there are companies who offer a free registered agent as part of your package when you form your llc through them inc file is a company i recommend which has this free service inc file offers a free registered agent on your first year of signing up for their service during that free year you can already take advantage of a professional and trained agent to receive legal documents on your behalf a dashboard where you can always access these correspondences that your agent has received as well as email notifications and automatic forwarding whenever your registered agent receives documents step 3 filing the alabama llc certificate of formation after that you must file the certificate of formation with the alabama secretary of state's business entities division and the office of the judge of probate to officially incorporate a domestic alabama limited liability company the alabama state filing cost for llc's is two hundred dollars for domestic llcs and 150 dollars for foreign llcs what's the difference good question basically a domestic llc means that you are already a resident of alabama and you want to build a business in alabama foreign llc on the other hand is for people living outside alabama but wants to start a business or a franchise of their business in alabama with that said most businesses would be applying for a domestic llc you can file the certificate of formation online or by mailing it to the secretary of state expect the llc certification process to take approximately two weeks step four prepare an operating agreement now an operating agreement is a good idea to have in place with the other members if your llc has more than one member although a limited liability company operating agreement is not necessary for alabama your operating agreement should clarify how your company or business will handle big picture issues such as allocating earnings and losses and dissolving the company your operating agreement should also cover the transfer of membership interest profits or losses and distributions initial investments decision-making powers voting rights and management and lastly dissolving the business step 5 obtain an ein an ein or employer identification number is a federal tax id issued by the irs your ein is used by them to readily identify your firm and tax filings all alabama firms pay a business privilege tax and the state requires you to have an ein to file you may also be required to provide your ein when opening a bank account or applying for municipal permits or licenses obtaining an ein is a slightly longer process compared to their previous steps i'm sure you know anything to do with the irs is confusing this is another reason why getting a professional registered agent is way more convenient as they can do this for you as part of their service now let's talk about the second option to form an llc and that is hiring a professional formation service professional formation services do all the steps you should be doing on your own from filing necessary forms to acting as your registered agent you usually have to allocate a specific budget for this option as i already mentioned earlier inc file is one of the best companies out there to help you form your llc you can click on the link in the description to get access to this deal inc file is one of a kind as it offers a free package with services such as preparing and filing your articles of organization well you still have to pay 237 dollars for the state fees which you would have to do anyway if you chose the diy option but looking at the bigger picture all other companies will still charge their service fee on top of state filing fees inc file does not collect this fee this plan already includes a free registered agent for your first year of subscription and 119 dollars annually moving forward if you decide to continue the service after the first year inc files next packages are the gold and platinum packages which both have package fees already on top of the 237 dollar state fee each package has its own set of servic
Thanks patraca1 your participation is very much appreciated
- Lupita Posada
About the author
I've studied economic value at Welch College in Gallatin and I am an expert in biocultural anthropology. I usually feel loved. My previous job was waiters and waitresses I held this position for 7 years, I love talking about jigsaw puzzles and handball. Huge fan of Ralph Macchio I practice figure skating and collect jersey cards.
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