Alabama (AL)

How to Start a Business in Alabama (Step by Step Guide)

Alabama-state-shapeAre you thinking about starting your own business in Alabama?  If so, then you have come to the right place!

On this page, you can find step by step DIY instructions on how to incorporate your business in Alabama. From selecting the business entity type to forms to be filled, we have covered it all.

Let’s get Started

The first step in setting up your business is to select the business structure.

Broadly there are 4 types of business entities:

  1. Limited Liability Company (Most Popular)
  2. Corporation
  3. Sole Proprietorship
  4. Partnership

Each business structure differs on the basis of taxation, asset liability and estate planning. We have written a detailed tutorial on how to choose a business entity type for your business here.

Below we have given a broad outline of the steps involved in registering an LLC or Corporation in Alabama.

Clicking on each step, opens up a detailed guide on how to complete it.

How to start an LLC in Alabama

Agency NameAlabama Secretary of State
Form(s) to be filledCertificate of formation (Form SOSDF-8)
ModeMail
Name ReservationMandatory, Fee $28 (Online)
Filing Fee
  • Domestic LLC: $100 + Probate Fee (about 55$)
  • Foreign LLC:  $150
Time3 to 4 weeks
LawAlabama Code Title 10A


Summary:

  1. Search for business name availability
  2. File for Business name reservation
  3. Select Registered Agent
  4. Fill the Certificate of formation (Form SOSDF-8) and send it to the office of the probate judge.
  5. Create an Operating Agreement
  6. Get an EIN Number
  7. File Business Privilege Tax Return (Form BPT-IN)
  8. Obtain relevant licenses and permits



How to start a Corporation in Alabama

Agency NameAlabama Secretary of State
Form(s) to be filledDomestic Business Corporation
Certificate Of Formation
ModeMail
Name ReservationMandatory, Fee $28 (Online)
Filing Fee
  • Domestic Profit/ Non-Profit Corporation: $100
  • Foreign Profit/Non-Profit Corporation: $150
Time3 to 4 weeks
LawAlabama Code Title 10A


Summary:

  1. Search for a Business Name
  2. File for Business Name Reservation
  3. Select Registered Agent
  4. Fill the Domestic Business Corporation
    Certificate Of Formation form and send it to the office of the probate judge.
  5. Draft Bylaws for your corporation
  6. Get an EIN Number
  7. File Business Privilege Tax Return (Form BPT-IN)


References:
https://sos.alabama.gov/business-services
https://sos.alabama.gov/

Fact-checked on 18/07/2018