Launching a new business in Alabama is exciting but can require a lot of steps. For many, starting a Limited Liability Company (LLC) is at the top of the list of things to do, but hiring an attorney may be out of the question because of the cost.
To form an LLC in Alabama, the Alabama LLC Certificate of Formation needs to be filed with the Alabama Secretary of State. The Certificate of Formation (also referred to as the Articles of Organization in many states) is the official document that is filed with the Alabama Secretary of State to establish a Limited Liability Company.
To help start your Alabama LLC, here is a guide on how to fill out the Alabama LLC Certificate of Formation.
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Filling out the Alabama Certificate of Formation in 8 Steps
To get started with filing the Certificate of Formation, visit the Alabama Secretary of State’s website to download the form or file it online.
Step 1: Pick a Name for the LLC
The first step in forming an LLC in Alabama is choosing a unique name for your business that is not already being used by another company. To find out if your business name is unique, first, do an Alabama LLC name search on the Secretary of State’s name database to see if your desired name is available.
Under the Alabama Limited Liability Company Act, there are a few additional guidelines to be aware of when selecting an LLC name in Alabama. These include:
– The company name must not imply a business purpose that is different from what the business does.
– The business name must contain the words Limited Liability Company or the abbreviation L.L.C. or LLC at the end of the business name.
– Unless the business is licensed by the state, words such as bank, insurance, attorney, etc. can’t be used.
Another unique requirement by the state of Alabama is that before filing the LLC Certificate of Formation paperwork, a Certificate of Name Reservation will need to be submitted to the Alabama Secretary of State. A copy of the filed Certificate of Name Reservation must be attached to the Certificate of Formation before sending it to the Alabama Secretary of State.
Step 2: Appoint a Registered Agent
A registered agent is a person or entity with a physical address in Alabama who is available during normal business hours to serve as a central point of contact for receiving important legal documents, tax notices, summons, subpoenas, etc., on behalf of the LLC. Every Alabama LLC is required to have a registered agent.
The registered agent must be 18 years or older and can be the business owner, a resident of Alabama with a physical address, a legal entity, or a registered agent service.
The registered agent’s address has to be a physical street address since a PO Box isn’t allowed.
In this section, enter the registered agent’s name, registered office address in the state of Alabama, county, and mailing address should routine letters need to be sent to a different address.
Related: What is an Alabama registered agent?
Step 3: Certify LLC Membership
This section asks the LLC organizer (this can be an owner or an unrelated person/company preparing the Certificate of Formation) to certify that at least one member of the Limited Liability Company is present and include their name and address.
Step 4: Select any Special LLC Designations
This section is optional and would be used only when an LLC will form a Series LLC, Professional LLC (PLLC) or a Non-Profit.
Most businesses will skip this section.
A series LLC is basically an umbrella LLC with mini LLCs underneath it. Real estate investors will often use the Series LLC to protect each property individually.
A Professional LLC is only for professionals licensed in the state of Alabama, such as accountants, doctors, lawyers, etc.
Step 5: Decide on the Effective Filing Date
This section provides a way to delay the start of the LLC. Some will choose to delay the effective date of the LLC if they aren’t ready to start the business but want to have the filing out of the way.
To choose today’s date for the start date of the LLC, skip this section, otherwise enter a start day up to 90 days in the future.
Step 6: Add Additional Attachments
This section is also optional but would be used if there were any additional attachments to be filed.
Step 7: Sign and Date the Certificate of Formation
Sign and date the Certificate of Formation
Step 8: File the Alabama Certificate of Formation
Last, file with the Alabama Secretary of State. If filing by mail, there are a few things to check before filing the Certificate of Formation.
1 – Make two copies of the signed Alabama LLC Certificate of Formation and be sure to include the Name Registration certificate.
2 – Mail both copies with a self-addressed, stamped envelope to:
Alabama Secretary of State, Business Services
PO Box 5616
Montgomery, Alabama 36103
3 – Include a check, money order, or credit card payment for $200. If paying by credit card, be sure to fill out and include the Domestic Formation Credit Card Payment Slip that is on page 4 of the downloaded Certificate of Formation)
4 – Be sure to keep a copy for your records.
Alabama LLC FAQs
How much does an Alabama LLC cost?
The cost to form an LLC in Alabama includes the Name Reservation fee of between $28 and a $200 filing fee for the Certificate of Formation.
How long does it take to get an Alabama LLC approved?
Within 7-10 business days after filing the Certificate of Formation, the LLC will be officially formed with the Alabama Secretary of State.
Does Alabama require an LLC to have an operating agreement?
Alabama Business Statutes, § 10A-5A-1.08, state that an LLC Operating Agreement is optional.
Although it isn’t required, it is recommended that most LLCs have one, as it can help prevent disputes among members and better protect the LLC’s legal status.
