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Incorporate your business in Alabama; Our Incorporation information is to help you with the small business startup process.
The Alabama Incorporation info can help answer questions like "How do I form an LLC in Alabama?" or "What type of Incorporation
entity should I be? An Alabama S-Corporation or an Alabama C-Corporation?" or "What are the requirements for an Alabama Corporation?"
It's easy to set up an Alabama Corporation with our Incorporation Software. It has this and other Incorporation info right on the
software. So once you know, your ready to go!
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| Corporate Name Endings |
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The name of the corporation shall contain the word "Corporation," "Incorporated," or an abbreviation. If the corporation
is a banking corporation the words "Bank," "Banking," or "Bankers" may be used. The name may not contain language stating
or implying that the corporation is organized for a purpose other than that permitted by the articles of incorporation.
The name cannot be the same as or deceptively similar to the corporate name of a domestic corporation or a foreign
qualified corporation.
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| Corporation Requirements |
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Director Information
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Minimum Number - One or more.
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Residence Requirements - None.
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Age Requirements - Directors must be a natural person at least 19 years of age.
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Directors are not required to be listed in the articles of incorporation.
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Officer Information
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Officers are not required to be listed in the articles of incorporation.
- Stock Information
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An increase in shares or par value does not affect initial filing fees.
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Corporate Records
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The articles of
incorporation and the minutes of shareholders' meetings and
records of all actions taken by shareholders without a
meeting for the past three years must be kept at the
corporation's principal office. Further, a list of names and
business addresses of current directors and officers and the
most recent annual report or public record information must
be kept at its principal office.
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| Tax and Fees |
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Annual Statements
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Annual statements are required as part of Form PSA. See "Taxes" section below. The fee is $10 annually.
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Taxes
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Businesses must generally file Alabama Form PSA, Alabama Business Privilege Tax Return, Corporate
Shares Tax Return, and Annual Return, within 2½ months after the beginning of their tax year.
For corporations filing on a calendar year basis, the return must be filed by March 15th of
the current year.
- Alabama Business Privilege Tax
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The minimum privilege tax imposed is $100 and the maximum is generally $15,000. The tax is based
on the following formula that looks both at the taxable income of the corporation and the net worth
of the corporation. The tax rate is determined by the taxable income of the corporation. If the
taxable income is between $0 and $1 the tax rate is $.25 per $1,000 of net worth. If taxable income
is more than $1 but less than $200,000, the tax rate is $1 per $1,000 of net worth. If taxable income
is more than $200,000 but less than $500,000, the tax rate is $1.25 per $1,000 of net worth of the
corporation. If taxable income is more than $500,000 but less than $2,500,000, the tax rate is $1.50
per $1,000 of net worth of the corporation and if the taxable income more than $2,500,000 the tax rate
is $1.75 per $1,000 of net worth of the corporation.
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Income Tax Rate
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The rate is 6.5% of net income.
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S Corporation
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S Corporation status is recognized by the State of Alabama. A separate state election from the federal
election is not required.
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License Requirements
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Alabama requires most businesses to obtain a license and pay a fee if operating in the state. Please
check with the state to make sure your business is complying with the license requirements for your
particular profession.
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For more information on taxes,
visit: http://www.ador.state.al.us
For additional or updated information, visit: http://www.sos.state.al.us
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Mailing Address:
Secretary of State
Corporation Division
State Office Building, Room 536
P.O. Box 5616
Montgomery, AL 36130-5616
Tel: (334) 242-5324
Fax: (334) 240-3138
Physical Address:
11 S. Union St. Suite 207
Montgomery, AL 36104
Would you like to incorporate in Alabama? Click
here to purchase the Alabama Incorporation Kit. |
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