Forming an LLC in Alabama (Preliminary information)
We have prepared a guide on forming an llc in the state of Alabama, the cost of an llc to be formed in Alabama, forming an llc at the most affordable price and the steps you need to take at this stage.
To form an Alabama LLC, a Certificate of Formation must be filed with the Alabama Secretary of State. A fee of $200 must be paid to the state to apply for installation. The Certificate of Formation is the legal document that officially creates your Alabama limited liability company. LLC setup fees are high in the state and may require signed certified copies at time of setup.
The registered agent company, from which you will receive support during the installation phase, will provide the necessary formation documents for installation in the state. Thus, you do not need to take any extra action. To form your company, you can get online service from Northwest Registered Agent by paying the 39+ State filing fee.
Costs
| Service | Price | In installation | Annual |
| Fee to be Paid to the State During LLC Company Formment | 200$ | ✔ | – |
| Annual Filing | 100$ | – | ✔ |
- In addition to the installation fee, do not forget to add the Northwest Agency fee of $ 39 to the cost.
- You can renew your Northwest agency fee next year for $125 (address included)
What is Registered Agent?
Agencies that provide services for entrepreneurs who do not reside in the United States to form an llc, receive official documents from the state, and ensure that the company remains healthy are called Registered Agents.
When you decide to form an LLC in Usa, Northwest is one of the best options. Northwest provides a free mailing address for your company.
There are also different agencies, you can access the full list and detailed review page of other Registered Agent companies that establish LLCs from this link .
How to Form an LLC in Alabama?
You can form an LLC remotely in the state online, there is no need to visit the state in person. Additionally, non-US citizens are not required to have an ID or passport. You need a registered agent for installation. If you do business with the Northwest agency, you do not need to pay extra for the company address because this agency has a mailing address in all US states and allows you to use this address. Other details are below.
- Determine Your Company Name: First, you must determine the name of your LLC company. There should be no conflicts with company names already in the state database. So do a search on the state website Choosing a Name for an LLC Company for name rules .
- You can get a domain name for your company: Check if the website domain name you will create for the business name you choose has been registered before. With Namecheap you can quickly register an llc domain name so that no one else can get and use your domain name in the future.
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- Apply Online: Determine a Registered Agent to establish your company and keep it active. Northwest is among the most affordable and highest quality options. here and order them to establish your company online.
- Operating Agreement: The operating agreement, called the Operating Agreement, determines the management style and rules of the company. It is not required to be created in many states, but Northwest will prepare a contract for you free of charge after company establishment and deliver it to you electronically. Although the state does not require it, it is recommended to create it, but you do not need to mail or electronically send this contract to the state, just keep the contract you have prepared and signed.
The approval period for the LLC company is between 3 and 5 business days for the state of Alabama.
What happens after your LLC company is approved in the state of Alabama?
- After the company is formed, your LLC formation document is delivered to you digitally.
- Once the company is incorporated and you receive the documents (digitally), obtain a Federal Identification Number (EIN) from the IRS. Without EIN, you cannot open a bank account or register for payment systems such as virtual POS (stripe) or paypal. You can also apply for an EIN yourself by filling out form SS4 and faxing it to the IRS. the guide here . The other option for EIN is to get a paid service. You can get EIN application service from us for $ 29. We can process it on the same day and carry out the entire process for you. this order form after company setup .
State Requirements and Taxes
Federal Taxes: All LLCs require a federal tax identification number, EIN. An EIN is basically the business version of a social security number and is used for important LLC functions. If you obtain your LLC company income from American citizens, you may be required to pay federal income tax to the state after a certain turnover.
State Requirements: LLCs must file an Annual Report and a Business Privilege Tax Return with or without income. It is necessary to meet these tax and annual reporting requirements each year.
Business Privilege Tax: This type of tax is a tax that combines an annual report, business license and tax. This filing keeps the state updated on the activities of your Alabama LLC. You can think of this type of tax as a license and tax for the privilege of doing business in the state.
Once your Alabama LLC is created, you must file your first return, called the Initial Business Privilege Tax Return This must be completed within 2 months from the formation date of your LLC.
Obtaining Business Licenses and Permits
If you own a business such as a brick-and-mortar shop or store in any city within the state and do physical retail business there, you may need some licenses and permits depending on what you do.
Business Privilege License and Store License:
- A Business Privilege License is a license to do business in the jurisdiction where your Alabama LLC is located.
- A Store License is a license for businesses that buy and sell physical goods or merchandise from a store.
Both of the above are issued by the County Probate Office or County Licensing Commission, which has jurisdiction over your Alabama LLC.
Annual Reporting
You must file an Annual Report and Business Privilege Tax Return each year These must be paid by April 15 each year.
Fees: $100 minimum. The amount may increase depending on the value of your business, revenue, and number of LLC Members.
For more information about taxes, you can check out the article Taxation in America
