Every state has its own rules regarding LLC (Limited Liability Company) formation—and Alabama is no exception. Understanding the requirements for forming an Alabama LLC makes the formation process easier.
Naming Your LLC
Your LLC’s name must contain the words "Limited Liability Company" or the abbreviations "LLC" or "L.L.C." You can’t use words in your name that imply a business purpose that differs from what you put into your Articles of Organization. Plus, the name you choose cannot be the same as (or deceptively similar to) a name already in use, or a registered or reserved name.
Member/Manager information
Alabama’s imposed the following requirements regarding members and managers of LLCs:
- Minimum number. An Alabama must have at least one member/manager.
- Residence requirements. Alabama does not have a provision specifying where members/managers must reside.
- Age requirements. There are no age requirements for members or managers of an Alabama LLC.
- Inclusion in the Articles of Organization. Manager-managed LLC's must list the name and address of each manager. However, member information does not need to be listed if the LLC is member-managed.
Requirements for the Articles of Organization
To form an LLC in Alabama, you must file Articles of Organization with the state and pay the state-imposed filing fee. The following information is required in the Articles of Formation:
- Registered Agent. You must provide the name and address of a Registered Agent with a physical address (no post office boxes) in Alabama. The registered agent must be available during normal business hours to accept important legal and tax documents for the business.
Other filings required at the time of incorporation
Alabama requires the following steps, in addition to filing the Articles of Organization:
- Initial report. Alabama requires LLCs to file an Initial Business Privilege Tax Return and Annual Report with the Department of Revenue within two and one-half months of incorporation.
- County filings. Depending upon the county, you may need to file documents at the at the county level before forming your LLC.
Professional services businesses
Alabama does not allow professionals, such as accountants, attorneys and physicians, to form professional limited liability companies (PLLCs).