Who owns LLC alabama requirements [Solved]

Last updated : Sept 8, 2022

What is required to form an LLC in Alabama?

To set up an LLC in Alabama you need an acceptable business name and registered agent and office. Complete the LLC application and file with the Secretary of State. There is a requirement to file an Initial Business Privilege Tax Return with the Alabama Department of Revenue within 2.5 months of creating your LLC.

How do I verify an LLC in Alabama?

When we can assist you, drop by our office or give our Business Entities Division a call at 334-242-5324 between 8 a.m. to 5 p.m. (central standard time). The Secretary of State Business Entities Division is located at 770 Washington Avenue in Suite 580.

How do I change ownership of an LLC in Alabama?

One way to transfer LLC ownership in Alabama is to have the existing members of the LLC buy out the partner who wants to leave. The leaving partner's ownership interest is then split among the remaining LLC members. To handle the transfer of ownership this way, you need to create a buy/sell agreement.

Do you need articles of organization for an LLC in Alabama?

The document required to form an LLC in Alabama is called the Articles of Organization. The information required in the formation document varies by state. Alabama's requirements include: Registered agent.

Do you have to renew your LLC every year in Alabama?

It is mandatory for an LLC to file an Annual Report in the State of Alabama, with the office of Alabama Secretary of State. In addition to LLCs, legal entities such LLPs & Corporations are bound to file the Annual Report along with the Business Privilege Tax.

How much is a LLC in Alabama?

Mail the $150.00 filing fee and two original copies of the "Foreign Limited Liability Company Application for Registration" to Alabama Secretary of State, Attention: Business Entities Division, P.O. Box 5616, Montgomery, Alabama 36103 or 770 Washington Ave., Suite 580, Montgomery, AL 36104.

How do I lookup who owns a business?

Businesses need to be registered with the state, There is an office of the Secretary of State. Within the office is the Department of Corporations. They usually have a search feature allowing you to search for a business by name.

Can I be my own registered agent in Alabama?

All owners of Alabama businesses are able to be their own registered agents. This means you can designate yourself to accept official notices and service of process for your business, and there are only a few requirements you must meet in order to be the registered agent.

What is a Professional LLC in Alabama?

What is an Alabama PLLC? An Alabama PLLC is an LLC formed specifically by people who will provide Alabama licensed professional services. LLCs in general are businesses registered with the state that consist of one or more people—called LLC members—who own the business.

How do I remove a partner from my LLC in Alabama?

To remove a member from your LLC, a withdrawal notice, a unanimous vote, or a procedure depicted in the articles of organization may entail. The member in question of removal may need to get compensated for his share of membership interests.

Can you gift a business to a family member?

Can a business be transferred to another person? Yes, a business can be transferred to another person, by sale, reapportionment of multiowner businesses or lease-purchase. A business owner can also transfer a business to a person through gradual cash gifts or by bequeathing the business.

Can you sell an LLC?

If wondering, “can you sell an LLC,” the answer is yes. However, remember that in order to sell your LLC, you need an actual buyer – and you need to agree on the sale price. Therefore, you might need a professional who can help value your business.

Does Alabama Have LLC tax?

(See the IRS website for the form.) The State of Alabama, like most other states, has a corporation income tax. In Alabama, the corporate tax currently is computed at a flat rate of 6.5% of taxable net income. If your LLC is taxed as a corporation you also will need to pay this tax.

What is a series LLC in Alabama?

An Alabama series LLC (SLLC) is a limited liability company that includes what is referred to as a “master” or “umbrella” LLC and other LLCs that are separate from each other.

How do I get articles of organization in Alabama?

1. By Phone: Call (334)242-5324 and request your certified copy.
2. By Email:
3. By Mail:
4. By Fax:
5. In Person:
6. Counter Service:
7. Expedited processing:
8. Normal processing:

How much does it cost to renew your LLC in Alabama?

To maintain an LLC in Alabama you will need to pay an annual fee of $100 along with sales tax (4%), Business Privilege Tax and federal taxes.

What is privilege tax in Alabama?

The business privilege tax is an annual tax paid by corporations and limited liability entities (including disregarded entities) for the privilege of conducting business in Alabama. The Alabama Business Tax law is found in Chapter 14A, Title 40, Code of Alabama 1975.

Do I need a business license in Alabama?

Starting a New Business The State of Alabama requires persons, firms, or corporations that engage in or transact any trade, business, commerce, occupation, vocation, or profession for gain or profit to pay a license fee. You may also need a license from the city that you will be operating the business in.

Can I use a PO Box for my LLC in Alabama?

Choosing a Registered Agent for your Alabama LLC Your Registered Agent must have a physical address in Alabama (PO Boxes are not allowed).

Why should I have an LLC?

The main advantage to an LLC is in the name: limited liability protection. Owners' personal assets can be protected from business debts and lawsuits against the business when an owner uses an LLC to do business. An LLC can have one owner (known as a “member”) or many members.

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how to form an LLC in Alabama Alabama is an excellent place to form a new LLC with the third-lowest tax burden in the country Alabama boasts inexpensive labor and a great cost of living every state has slightly different requirements for forming an LLC follow along closely to learn the required steps for creating your own limited liability company in the state of Alabama there are two ways to form an LLC in Alabama you can form one yourself or you can hire a service to do it for you let's start by looking at the five basic requirements to form an LLC and Alabama on your own you can also find these steps and more detail on our website linked in the description below 1 name your LLC every state has its own rules about what kind of names are allowed for LLC's in general you will need to observe these naming guidelines your name must include the phrase limited liability company for one of its abbreviations LLC or LLC with a period following H letter restricted words such as Bank Attorney law office etc may require additional paperwork and may also need a licensed professional to be part of the LLC your name cannot include words that could confuse your LLC with a government agency such as FBI Treasury State Department etc you cannot use a name that has already been registered to see if your name is available in your state you'll need to do a name search this free service is available on your state's Secretary of State website check out our free guide for finding the direct link to your state we also recommend that you check to see if your business name is available as a web domain even if you don't plan to make a business website today you may want to buy the URL in order to prevent others from requiring it to choose a registered agent Alabama requires that you nominate a registered agent for your LLC who is your business's point of contact with the state the registered agent can be an individual within the company including yourself or you can hire a professional service authorized to do business in Alabama they will send and receive legal papers on your behalf these documents include official correspondence like legal summons and document filings which your registered agent will receive and forward to you your registered agent will help remind you to file the Cerie reports failure to properly maintain your LLC can result in fines and dissolution so this assistance is valuable 3 file the certificate of formation to register your Alabama LLC you will need to file the certificate of formation with the state of Alabama this can be done online or by mail whether filing online or by mail you will have to pay a fee to the probate county judge on top of the other filing costs the exact fee varies by county so contact your local probate office for more information you should also decide whether your LLC will be member managed or manager managed member managed means all members of the LLC manage the company this is good for small organizations where everyone is involved in the day-to-day operations the second option is manager managed where individuals are appointed to manage the LLC this is appropriate for larger organizations where not everyone is involved in the day-to-day affairs of the business for create an operating agreement although not every state requires it you should always create an operating agreement to establish ownership terms and member roles for your LLC this foundational document is the core of your LLC and will help you maintain your organization as well as further establish your LLC is a separate legal entity there are six main sections of an operating agreement organization outlines when and where the company was created who the members are and how the ownership is structured management and voting addresses how the company is managed as well as how the members vote capital contributions covers which members financially support the LLC and how more funds will be raced in the future distributions outlines how the company's profits and losses are shared among members membership changes describes the process for adding or removing members as well as if and when members can transfer their ownership shares and dissolution which explains the circumstances in which the LLC may be dissolved an operating agreement is an internal document it does not need to be filed with the state however it should be updated every time there is a change in membership or management at the company you can download a free sample operating agreement or create a custom one using our free operating agreement tool at how to start an LLC com 5 obtain an EIN lastly you'll need to get an employer identification number or ein from the IRS also known as a federal tax identification number your EIN is like a social security number for your LLC and is how the IRS tracks your business for tax purposes an EIN is also necessary to open a business banking account and legally hire employees Aeons are free of charge and can be obtained from the IRS online or through the mail and with that you will have formed an Alabama LLC on your own option to hire professional service the second way to create an Alabama LLC is to hire professional service to create your LLC for you hiring a professional service to file your forms and act as your registered agent for the LLC will cost you an additional fifty to one hundred and fifty dollars however there are several benefits to working with a pro a higher registered agent helps with getting your reports filed on time helps you stay organized by keeping your business mail separate and is available at all regular business hours to accept official mail and legal papers on your LLC's behalf a final and important additional benefit of using a service is privacy a professional service will provide a level of privacy by withholding your personal name and home address from the LLC's contact information there are many reasons why you might not want your personal information easily accessible and associated with your business hiring a professional LLC for mation service is an easy way to accomplish this now that you've seen the different requirements in ways you can form an LLC in Alabama visit our site and take some time to research your options and establish a solid foundation for your business activities click on the links in the description below to research the top five professional formation services or get more information on how to form an Alabama LLC on your own now you know all the steps to form an LLC in your state for a more detailed guide go to how to start an LLC com you can also create an operating agreement and use our business plan tool free of charge give the video a like if you found it useful and subscribe if you'd like to see more and if you have questions or encounter any roadblocks leave a comment below good luck and starting your small business you

Thanks for your comment Robin Hignight, have a nice day.
- Toccara Sproul, Staff Member

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 Dana your participation is very much appreciated
- Toccara Sproul

About the author

Toccara Sproul

I've studied immigration policy at University of Montevallo in Montevallo and I am an expert in relativistic quantum mechanics. I usually feel ditzy. My previous job was medical records administrator I held this position for 14 years, I love talking about button collecting and model aircraft. Huge fan of Alexander the Great I practice snowmobile racing and collect cracker jack prizes.