Form a Corporation in Alabama

As an Alabama business owner, you owe it to your customers and your employees to put your business in a position to succeed. Of course, you also owe it to yourself–after all, you worked hard to put your experience and knowledge into creating your own venture. If you are new to entrepreneurship, or if you are looking to evolve your current business, you may wish to pursue the formation of a legal structure for your business. At Corporation Center, we can help you form a corporation in Alabama, and create a limited liability company (LLC), or a limited liability partnership (LLP). By using our streamlined web forms, you can draft the documents you need with just a few clicks. 

Form a Corporation in Alabama

There are a number of different ways in which you can structure your Alabama business. For some, creating an LLC gives them the protection they need while providing a number of valuable incentives. Others opt for a general partnership or sole proprietorship. In truth, each formation will have its own drawbacks and positives, and choosing what is right for your business will ultimately depend on your needs and goals. If raising outside investment is of particular importance to your organization, you may wish to form a corporation in Alabama.

When you create a corporation, you are able to issue stock. By selling what are essentially fractional shares of ownership in your business, you can generate quick capital without surrendering much in the way of how your business will be managed. Of course, a corporation also must follow strict guidelines in terms of its structure, and there are tax considerations you will want to weigh as well.

To start your corporation, you will need to first choose a name that is not already registered with the Alabama Secretary of State. From there, you can use our online forms to draft your certificate of formation. In this document, you should be prepared to provide some basic details about your business, its incorporators and registered agent, as well as how many shares you plan to issue.

Create an LLC

Limited liability companies are especially popular among new entrepreneurs. The reason for this is that they offer time-tested incentives that are hard to pass up. In an LLC, your company will be designated as its own legal entity. Additionally, you will be granted the protection of “limited liability”. This means that in the event your business faces costly litigation or bankruptcy, you and the other members (owners) of the LLC will be able to shield your personal assets. As you can imagine, this mitigates a fair amount of risk.

In an LLC, you will receive what is called “flow-through” status with the Internal Revenue Service (IRS). In this formation, profits that are made by your business are not subjected to taxation until they flow through to the members of the LLC, who will then pay personal income taxes. LLCs are also fairly easy to set up and do not require much in the way of maintenance or reporting, which makes them appealing to busy business owners.

To start your own LLC in Alabama, you will first need to reserve your business’s name with a certificate of name reservation. Your name must not match any other LLCs on record and should include the words “Limited Liability Company”, or a suitable abbreviation. You can then use our web forms to create your certificate of formation, which will require some simple details about your business, its owners, and its registered agent.

Start Your Own Alabama LLP

Certain lines of work call for unique considerations when forming a company or firm. For licensed professionals who can face liability challenges, this is especially true. A limited liability partnership (LLP) is typically used by doctors, lawyers, accountants, and dentists when starting a new business. The reason for this is that like an LLC, an Alabama LLP will grant its members limited liability protection. In an LLP, however, if a partner is negligent, they can be found liable, allowing for a sort of targeted mode of accountability. 

The process for forming an LLP is largely similar to that of an LLC. You will first need to reserve a name, and then file a certificate of formation, which can be done using our online forms. You will need to provide information about your business, the partners involved, and the contact information for your registered agent. 

No matter what your Alabama corporate document needs may be, we can help. At Corporation Center, we offer streamlined web forms for all 50 states, and we utilize an SSL-encrypted web portal to ensure the secure transmission of your personal data and documents. To learn more about how we can help you start an Alabama LLP, LLC, or corporation, take a minute or two to explore our forms. You can also contact us by phone or email with any questions you may have.