Forming an Alabama limited liability company

Picture of Alabama DIY S corporation kit bundle

We’ve got a downloadable, do-it-yourself incorporation kit you can use to set up an LLC in Alabama. That kit includes instructions for forming the LLC and for getting an employer identification number. And it includes sample LLC operating agreements you can use for your LLC’s operating agreement.

To buy and then download that kit, you use the button shown below…

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But one other important comment: The actual steps you take to form an Alabama limited liability company are quite simple. Accordingly, if you don’t need help with the EIN application and don’t need LLC operating agreements, see if you can’t follow the instructions below to get your Alabama LLC set up. Here’s what you need to do:

1. Check if the name you want for your LLC is available

The name of an LLC in Alabama must be reserved. As a first step, you may want to check if the LLC name you want to use is even available. An easy first step is to search the first link below to see if the name you want is already being used.

http://arc-sos.state.al.us/CGI/CORPNAME.MBR/INPUT

When you find a name that seems available reserve it at:

https://www.alabamainteractive.org/sos_nameReservation/welcome.action

Your corporate name must end with the words Limited Liability Company or an abbreviation of these words (L.L.C. or LLC). For example, all of the following names should be acceptable:

  • Acme Explosives Limited Liability Company
  • Acme Explosives LLC
  • Acme Explosives L.L.C.

Make sure you save a copy of your name reservation certificate; you will need to attach it to your application when you file.

2. Download the certificate of formation form from the Alabama Secretary of State’s web site

The URL, or web page address, for this form is as shown below.

http://www.sos.state.al.us/downloads/business/sosdf-8.pdf

3. State the name you want to use for your new LLC

Enter your business or investment name onto the lines provided. (I used the example name, “Acme Explosives LLC.”) This is the name you reserved in step 1. The form then instructs you that you will need to attach your name reservation certificate.

4. State who is preparing the form

Enter the name and address of the person filling out the form.

5. Give the principal office of the limited liability company

Enter the street address of the LLC’s main office.

6. Identify yourself as the registered agent and provide your address

You need to provide your name and address as the registered agent. A P.O. box is not acceptable.

7. State the purpose of the LLC

This is where you state what your LLC will do. In this case, Acme Explosives LLC wholesales to mining companies.

8. Consider the duration of the LLC

If you have a desired date of dissolution, write that down on a separate piece of paper and attach it to the application. (Also see item 11 on page 3 of the Alabama form.) If not, your LLC will have a perpetual duration and you should put “perpetual” in the blank as shown in the example.

9. List the names and addresses of the organizers

Next the form asks for the name(s) and address(s) of the organizer(s). Typically, in a do-it-yourself situation, you would be the sole organizer.

10. List the names and addresses of the managers of the LLC

If your LLC is to be owner-operated you can leave this blank. However, if you are going to hire managers to run your LLC, list the initial managers here.

11. Attach elements of your operating agreement

If the terms of your operating agreement call for the right to admit additional members, you must attach the terms and conditions. Likewise, attach any terms of dissolving the LLC due to a member ceasing to participate. Obviously these are important areas for multiple-member LLCs to agree upon ahead of time.

12. Date and sign

Remember after printing the form, at the bottom of the form, you will need to add your signature and the date.

13. Submit the application

After you complete the certificate of formation, mail the original and two copies of the document along with a check payable to the Secretary of State for $100 (in some jurisdictions you can pay by credit card) to the probate judge in the county where the LLC’s registered office is located. The probate judge will collect the Secretary of State filing fee and forward it, along with the filed copy, to the Secretary of State.

The Corporations Division receives some 500 requests each day for information regarding its 250,000 filings. This means that processing lead times vary, but in general, it takes several weeks to get your LLC certificate back.