Steps to Forming an Alabama Corporation
Information We Need From You to Start Your Corporation
1: Select a Name: Your corporation must contain the word Corporation or Incorporated, or an abbreviation of one of those words.
2: Authorize Shares: Corporate ownership is determined by owning shares of stock. Owners are known as shareholders. Alabama requires you to authorize a certain number of shares. A typical corporation will authorize an easily-divisible number of shares, say 100, which are generally issued to owners at the first shareholders meeting based on the amount of money each owner is putting in. If there will only be one owner, most people will only issue 51% of the authorized shares, giving them control, but making it very simple for the corporation to issue any or all of the remaining 49%, should they take on a partner someday. Alabama also asks for a par value (the bottom price at which the stock can be sold), but does not require you to assign one. The par value of a share has nothing to do with the actual value of a share. It simply means the least dollar amount that share could be sold for.
3: Choose Management: When you form your corporation, you appoint the Directors, who will make major policy and financial decisions for the company (issue stock, appoint corporate officers, set employee salaries, etc.). Most of the time, you would simply assign yourself as Director. The Directors appoint the officers (President, Secretary, and Treasurer) which most of the time would be you for all roles.
4: Remaining Info Needed to File:
- Street address of principal office: the office where your corporate books and records are kept.
- Mailing address of principal office: if different from street address.
- Registered Agent: the legal registered agent must have a physical address in Alabama. This is known as a registered office address (no PO boxes). All our filings include one free year of Alabama registered agent service by Northwest Registered Agent. This service keeps your private home and office address off public records for the registered agent, mailing, and principal office requirements.
- Purpose of Corporation: the lawful business you intend to perform (a restaurant’s purpose, for example, may be: to provide food and drink to customers). Most people just opt for a general clause.
- Number of shares and their par value: the number of shares of stock you are authorizing (at least one share) and the lowest value they can be sold for (par value is optional).
- Period of duration: if you wish for your corporation to be dissolved at a specific future date, you must attach a document specifying that date.
- Names and addresses of directors: you must appoint at least one Director, and you are required to supply their true name and a street address (not a PO box), as well as a mailing address (if different from street address).
Form Your Corporation Here Online
Steps to Forming an Alabama LLC
Information We Need From You to Start Your LLC
1: Select a Name: Your company name must include the words Limited Liability Company or the abbreviation L.L.C. or LLC. The name must be unique from others. You can do an Alabama Name Search to help see your options.
2: Membership: LLC owners are known as members. Unlike a corporation, an LLC does not issue stock to determine ownership. Instead, each member is simply assigned a percentage of ownership, usually based upon what each members contribute to the company.
3: Select Management: In most cases, LLC members manage the company themselves (there is not board of directors). However, members can also choose to appoint a single manager to oversee the daily operations of the business. This can be a member or an outside party or employee.
4: Remaining Info Needed to File:
- Street address of principal office: this is the location where your company’s records and financial books are kept.
- Mailing address of principal office: if different from street address.
- Registered Agent: legal Alabama registered agents must have a physical street address within the state. This is called a registered office address. It cannot be a PO box. All Speedy filings include one free year of Alabama registered agent service. This keeps your private home or office address out of public records and fulfills the mailing, principal, and registered office requirements.
- Purpose of LLC: the lawful business you intend to conduct (a bakery’s purpose, for example, could be: to prepare baked goods and sell them to the public). A general business clause is preferred.
- Duration of company: if you wish for your LLC to be dissolved at a certain date, you must note it here, otherwise it is assumed that you want your company to exist perpetually.
- Number of managers: the number of people assigned to manage your LLC (can be a single person).
- Names and addresses of managers: the names and mailing addresses of your managers. Managers can be changed in the future.
- Rights of members to admit additional members: if your members are allowed to admit new members in the future, you must attach a statement that lays out the terms and conditions of admission.
- Circumstances under which cessation of membership will result in dissolution: if you want your LLC to dissolve when a particular member(s) leave the company, you must attach a statement explaining what circumstances apply (you may want your LLC to automatically dissolve upon your death, for example).
- Effective date of creation: if you want your LLC to begin its official existence at a later date, you can select a date here (this can not be more than 90 days after the signing of your filing).
Form Your LLC Here Online
Testimonials
“I was going to do all the paperwork myself, but decided to take a chance and get it done online. I’m glad I did. Thanks Speedy.” – Denise C., Mobile, Alabama
“I’m so glad I found your service. It took me twenty minutes to fill out the form and I was off to the races. I’ll gladly recommend you to anyone I know. ” – Leonard C., Saraland, Alabama
“It just doesn’t get any easier than you guys. Thanks for answering my questions when I called and for taking care of all the hassle. ” – Chelly K., Lincoln, Alabama
