Alabama – 50 States of Incorporation, Rebooted

A couple of years ago, we blogged about what it takes to start a business in each of the 50 states. Now, we’re hitting refresh on that series. Welcome back to the 50 States of Incorporation, Rebooted where we share with you the easiest tips and tricks of starting an LLC or corporation in every state.

Let’s take a stroll down to Alabama, AKA the “Heart of Dixie” state. The Corporations Division has roots dating all the way back to 1850, when legislation authorized the Alabama Secretary of State to file and certify articles of incorporation. Back then, big businesses like railroad and steamship companies filed their articles with the Secretary of State. As time passed, more startups were created and an increasing amount of entity records were deposited with the Secretary of State — so much so that it was time to create a Business Entity Division. Today, that division has 250,000 filings and receives more than 500 requests each day regarding those filings!

What’s the small business environment like in Alabama? WalletHub ranks Alabama 42nd on their 2017 list of the best and worst states to start a business in, giving it a 4th place rank for lowest labor costs. Alabama also received a “B+” rating from Thumbtack.com for overall friendliness and ease of starting a business. If you are considering starting a small business in Alabama, keep these five tips in mind.

1. The Alabama Secretary of State serves these entities: For-Profit Corporations, Non-Profit Corporations, Limited Liability Companies, Limited Partnerships, Registered Limited Liability Partnerships, and Limited Liability Limited Partnerships.

2. The current filing fee for the Alabama Secretary of State is $100.00, and there is a separate fee if the process needs to be expedited as well as a probate judge fee.

3. If filing to start a LLC, your entity name must contain the words Limited Liability Company or the abbreviation L.L.C. or LLC. You must obtain a Certificate of Name Reservation prior to filing your formation documents in the county.

4. You must file the original and two copies of the Certificate of Formation in the county where the LLC’s registered office is/will be located.

5. Another note to keep in mind is that some of the Probate Judge’s Offices don’t accept credit cards as a payment method. Make sure you check in with the Office of the Judge of Probate prior to filing to determine payment methods and possible expediting processing if necessary.

You can also find more information about Alabama’s business entity division and more business services offered by the state by visiting the Alabama Secretary of State website. Stay connected and follow the Alabama Secretary of State’s Facebook page and Twitter account for all the latest updates.

Ready to start a small business in Alabama? Give us a call at 1(877) 692-6772 or visit us at mycorporation.com if you have any questions about forming a business or the regulations required.

Deborah Sweeney

Deborah Sweeney is an advocate for protecting personal and business assets for business owners and entrepreneurs. With extensive experience in the field of corporate and intellectual property law, Deborah provides insightful commentary on the benefits of incorporation and trademark registration. Education: Deborah received her Juris Doctor and Master of Business Administration degrees from Pepperdine University, and has served as an adjunct professor at the University of West Los Angeles and San Fernando School of Law in corporate and intellectual property law. Experience: After becoming a partner at LA-based law firm, Michel & Robinson, she became an in-house attorney for MyCorporation, formerly a division in Intuit. She took the company private in 2009 and after 10 years of entrepreneurship sold the company to Deluxe Corporation. Deborah is also well-recognized for her written work online as a contributing writer with some of the top business and entrepreneurial blogging sites including Forbes, Business Insider, SCORE, and Fox Business, among others. Fun facts/Other pursuits: Originally from Southern California, Deborah enjoys spending time with her husband and two sons, Benjamin and Christopher, and practicing Pilates. Deborah believes in the importance of family and credits the entrepreneurial business model for giving her the flexibility to enjoy both a career and motherhood. Deborah, and MyCorporation, have previously been honored by the San Fernando Valley Business Journal’s List of the Valley’s Largest Women-Owned Businesses in 2012. MyCorporation received the Stevie Award for Best Women-Owned Business in 2011.