Start a Business in Alabama
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This guide on starting your business in Alabama provides step-by-step instructions on the paperwork to file formation documents, obtain tax IDs, and set up company records.
Step-By-Step Startup
Below is an overview of the paperwork, cost, and time to form each of the most popular business structures. Simply click on the link for your desired structure to view detailed step-by-step instructions.
- If you have not decided whether you want to form an LLC, corporation, or other business structure, click here.
- If wish to form your business in a different state than Alabama, click here.
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Alabama Sole Proprietorship Click for step-by-step instructions |
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Alabama General Partnership Click for step-by-step instructions |
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Alabama Limited Liability Company Click for step-by-step instructions |
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Alabama Corporation Click for step-by-step instructions |
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Alabama Nonprofit Click for step-by-step instructions |
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Top 5 Tips on Registering a Business in Alabama
- Name reservation in Alabama is mandatory. You must obtain a name reservation prior to filing formation documents.
- In many states you submit your formation documents directly to the secretary or department of state. In Alabama, you submit your formation documents to the Office of the Judge of Probate in the county where your registered office is located. We'll explain this in detail later.
- Alabama offers a consolidated registration form for state taxes (Form COM-101). The good news is that it's a brief one page form. The bad news is that you'll have to determine what tax accounts to register for specifically and check the appropriate boxes. The tax code is complex and you might need the assistance of an accountant to make sure you register for the appropriate taxes.
- LLCs and corporations must file an initial Business Privilege Tax Return and pay the business privilege tax within two and one-half months after formation.
- In Alabama, a privilege license is required in every county where you conduct business. We'll explain how to obtain this from the County Probate Office.
