How to Start An Llc In Alabama, when asked by potential clients is a good question. Not knowing the requirements and limitations set forth in the law can make it difficult to do this. This article will discuss the basics when opening a limited liability company.
Alabama requires all individuals and companies to register their businesses with the state as an "LLC". This word "llc" means Limited Liability Company. Other names that are commonly used in the state are: Limited Liability Company, Limited Liability Partnership, and Corporation. Each of these terms mean the same thing, and your familiarity with them should help you answer the question, "how to start an llc in alabama?"
Limited Liability Company means that the business owners are solely liable for all debts, liens, and responsibilities against the business. Each member is liable for his or her own responsibilities. Because of this clause, open businesses in the state may be subjected to audits by the Alabama Department of Revenue. If any member or members fail to meet the requirements, the income or assets of the business could be seized by the state. However, if the business is open and is actually doing well, no income or assets may be seized.
How to Start an LLC in Alabama
Forming a Limited Liability Company in the state of Alabama is relatively simple. Like most other forms, you need to file the appropriate forms with the secretary of state in the particular state where you want to form an LLC. However, if you wish to open an LLC in Alabama, you have to choose a unique name that is also your business name. Your chosen name must comply with all the laws of the particular state where you plan to open the business. Your chosen name cannot be a confusing combination of words or a misleading misspelling.
Once you choose a name, the next step on how to start an LLC in Alabama is to register the business. You have to do this with the office of the Secretary of State in the particular state where you plan to open the business. Each business must appear for a title search and also file its financial reports. The filing of the articles of incorporation must also be done with the office of the Secretary of State in the state where you intend to open the business.
The next step on how to start an llc in Alabama is to hire a registered agent. In general, the agent of a Limited Liability Company is a company officer who will act on behalf of the business. The registered agent's office will be the office where your business will conduct all business. It is advisable to remember that even though you are working with a limited liability company, your business will be its legal entity. Therefore, it is necessary to appoint an accountant or attorney to manage the business.
After these formalities are complete, you will have to register the business with the state. This is done by submitting a form to the department of Revenue in the state where you live. There are fees associated with the registration. They vary from state to state, so it is best to check with the Department of Revenue in Alabama in order to determine how much you need to pay.
On how to start an llc in Alabama, you are not done yet. To ensure that the laws governing the business are followed, you will have to register the company with the state as well. Once you have done so, you can then receive a fictitious name. A fictitious name is one that does not have any relation to the identity of the company. If the name you choose is related to the identity of the company, your business can be shut down, for the purposes of having the Trade Name registered.
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