Starting a Business in Alabama

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Business Entity Formation

Business entities are formed by registration with the Alabama Secretary of State.

Limited Liability Company

Filing a Domestic LLC (for profit company, first registered in Alabama) is a $75 initial filing fee, $ annual fee, and may not be submitted online. Expedited service is not available. Immediate when filed in person. Your corporate name must end with the words Limited Liability Company or an abbreviation of these words (L.L.C. or LLC).

File the original and two copies of the Articles of Organization in the county where the LLC's registered office is located.

The Probate Judge will collect the Secretary of State filing fee ($40) in addition to the Probate Judge's Fee ($35 minimum) and forward it, along with the filed copy, to the Secretary of State.

Filing a Foreign LLC (for profit company, first registered elsewhere) is a $75 initial filing fee, $ annual fee, and may not be submitted online. Expedited service is not available. Your registered name must end with the words Limited Liability Company or an abbreviation of these words (L.L.C. or LLC).

File two original copies of the "Foreign Limited Liability Company Application for Registration" with the Corporations Division of the Secretary of State.

Mail the $75.00 filing fee and two original copies of the "Foreign Limited Liability Company Application for Registration" to Alabama Secretary of State, Attention: Corporations Division, P.O. Box 5616, Montgomery, Alabama 36103 or 11 South Union Street, Room 207, Montgomery, Alabama 36104

Corporation

Filing a Domestic Corporation (for profit company, first registered in Alabama) is a $85 initial filing fee, $ annual fee, and may not be submitted online. Expedited service is not available. Immediate when filed in person. The corporation fee includes the $40 state fee, the $35 (minimum) Probate Judge fee, and the $10 name reservation fee.

Your corporate name must include the word "Corporation" or "Incorporated" or an abbreviation of one of these words ("Inc." or "Corp.").

File the original and two copies of the Articles of Incorporation and the Certificate of Name Reservation in the county where the corporation's registered office is located.

Filing a Foreign Corporation (for profit company, first registered elsewhere) is a $185 initial filing fee, $ annual fee, and may not be submitted online. Expedited service is not available. The fee is $175 for foreign corporation registration plus $10 for name reservation.

Any foreign corporation is required to obtain a certificate of authority before transacting business in the state.

Sole Proprietor

A sole proprietor business does not require registration with the state.

DBA (Doing Business As) or Fictitious Business Name

Alabama allows individuals and businesses to register a fictitious business name. Alabama does not require businesses to register a fictitious name. However, businesses may elect to register a trade name with the Secretary of State. For more information on DBAs in Alabama visit the Secretary of State’s website.

Business Licenses

Business licenses in Alabama are issued through the All businesses are required to have a state business license. City and county requirements vary and are in addition to the state business license.. For more information on business licenses in Alabama visit their website.

Professional Licenses

There are a number of professions that require a state license in Alabama. For more information on professional licenses, visit their website. This site provides links to the individual websites for professional licensing.

State Income Tax

Alabama does have a state income tax for individuals. Alabama does have a state income tax for corporations. Visit this website for more information on business income taxes in Alabama.

Alabama does not have a franchise tax for corporations.

State Sales Tax

Alabama does have a state sales tax. Visit their website for more information on sales taxes in Alabama. Apply for an Alabama sales tax permit here.

Employer Assistance

The state of Alabama administers labor and employment issues through the Department of Labor.

Unemployment Insurance

Unemployment insurance information for employers in Alabama is available at this web page. If you have more than four (4) employees, full-time or part-time and including officers of a corporation, the Alabama Workers' Compensation Law requires you to have workers' compensation insurance coverage. Employers of domestic employees, farm laborers, or casual employees and municipalities having a population of less than 2,000 (according to the most recent federal census) are not required to provide coverage but can elect to be covered by the provisions of the Alabama Workers' Compensation Law.

Unemployment insurance information for workers in Alabama is available here.

Workers' Compensation

Information for employers in Alabama regarding Worker's Compensation is available from the Department of Industrial Relations website.

Occupational Health & Safety

OSHA regulations are administered federally in Alabama. Visit Safe State Occupational Safety and Health website for Alabama. The Safe State Occupational Safety and Health Consultation Program is a FREE service provided by the University of Alabama's College of Continuing Studies to small employers (250 or less employees on site; 500 total employees) within the state. At your invitation, consultants will come to your office or plant to perform a survey and to advise you of existing or potential health and safety problems in your facility, suggest general approaches or options for solving those problems, identify other help available if further assistance is needed, and provide you with a written report summarizing the findings of the visit.

Resources for Starting a Business in Alabama