Alabama Business Facts
Alabama, also known as the Yellowhammer State, the Cotton State, and the Heart of Dixie, is considered to be the thirtieth largest state by area. What the state has become today is a product of the economic hardship it suffered in the past.
From a state that is completely dependent agriculture, Alabama has now diversified its interests. From management to finance, manufacturing, automotive, aerospace, healthcare, mineral extraction, retail, education, and technology, Alabama is now one of the most thriving states in America.
In terms of business development, Alabama has many reasons to be proud of. Alabama is a hub for medicine and automotive manufacturing, with recent successes ranging from Remington to Polaris. Companies such as Airbus, Hyundai, and Mercedes-Benz locating plants in the state demonstrate how pro-business Alabama can be for big companies. A new study reveals that Alabama is likewise an attractive destination for small business entrepreneurs and owners.
Major Companies Headquartered in Alabama
Alabama is the headquarters of many major companies including HealthSouth, Regions Bank, BE&K, Civil Air Patrol, and the University of Alabama.
Alabama believes that by bringing in big corporation, this will lead to the development of smaller businesses that are there to offer resources but ultimately seeking ways to expand. Alabama has among the lowest rates for property tax and corporate income tax. This leads to the creation of a pro-business environment.
There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Alabama, but we highly recommend you do the following before searching Alabama state databases:
NOTE: Familiarize yourself with the Alabama naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on Alabama Business Name & Business Purpose
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Alabama.
How to form an LLC in Alabama
TIP: Speak to your tax advisor about this important issue because it adds complexity to your LLC most people would rather avoid.
How to Incorporate in Alabama
Considerations when incorporating or forming an LLC in Alabama
How to File a DBA in Alabama
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
You can read more about corporate tax laws in Alabama on the Alabama Department of Revenue Taxation Division site.
Optional Considerations when registering a Alabama business
Ready to register a business in Alabama?
We specialize in registering businesses in Alabama.
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in Alabama
TIP: Our business formation service includes a free banking resolution for your use.
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
DBA: Your Fictitious Business Name should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.
Corporation: Business in Alabama should file an Annual Report with the Secretary of State of Alabama.
LLC: Alabama corporations are required to file an Annual Report with the Alabama Secretary of State each year, in addition to general taxation. Information on your business’s taxes can be found here.
Business Services (for Corporation and LLC filings)
Alabama State House
11 South Union Street, Suite 119
Montgomery, AL 36130
Alabama Taxation Departments
Alabama Labor and Employment Departments
Alabama Startup Resources
1. Small Business Administration (SBA) Alabama District Offices
2. SCORE Alabama
3. Alabama Legal Statutes
5. Innovation Portal
6. Angel.co Alabama Startups
7. Alabama Business News
10. USGBC Alabama
Wow loved it thankyou! I dreaded making this for a month thinking it would be a hassle. It wasn't thanks to you guys!
Excellent in all aspects. Perfect for new business owners with limited resources but wants to start it off right.