Sometimes we know something exists, but don’t know how to get to it. For example, Bart and Beatrice were in the early stages of planning their new business. They had heard of limited liability companies, or LLCs, but had no idea how to form an Alabama LLC. Bart and Beatrice need to find out what an LLC is, whether it is the right business entity for them, and what steps they must take to form one.
LLC: One Type of Business Entity
Generally, a business will be one of the following structures:
- Sole proprietorship,
- Partnership and limited partnership
- Corporation (profit or non-profit),
- Registered limited liability partnership,
- Limited liability partnership, and
- Limited liability company (LLC).
Each structure varies, usually in management, ownership, formation, and taxation. But we are specifically interested in the LLC structure.
Owners of LLCs enjoy the following advantages:
- Personal assets are protected from LLC obligations.
- Formation is fairly easy and inexpensive.
- Avoiding the double taxation structure of corporations.
State laws vary on forming a business. The Alabama Secretary of State website offers some assistance.
Forming an Alabama LLC
To get your business entity started, you’ll need to do the following:
- Research your business name. and file a Certificate of Name Reservation. Then, you will file this with the county probate judge where the LLC’s office is located. Note that your business name must include the words “Limited Liability Company” or LLC.
- Next, file the original and two copies of a Certificate of Formation. Again, this is filed in the county where the LLC maintains a registered office.
- Always check with the probate judge or clerk’s office before filing any documents. For example, you may need to file the original and several copies. Also, not all judges collect fees for the Secretary of State’s office.
Once your LLC is formed, you can get down to business!
Learn More About How to Form an Alabama LLC. Talk to an Alabama Business Lawyer.
At Miller Estate and Elder Law, we make it our business to put our client’s needs first. We assist our clients in making legal decisions regarding their business interests. For a free consultation, contact us at 256-251-2137 or use our convenient Contact Form. We have offices in Anniston and we assist clients in the Leeds, Gadsden, Hoover, Talladega, Vestavia Hills, and surrounding areas.