|Alabama Corporation Benefits|
|Well-Defined Business Structure||There are many reasons to incorporate your Alabama business. One attractive feature is that Alabama corporations have a fixed business structure and chain of command. Corporate officers attend to the daily operations of the corporations, while the board of directors controls company-wide decisions.|
|Alabama Corporate Tax||Alabama does have an 6.5% corporate income tax. Corporations are subject to double taxation, which means that a corporation must pay tax on its profits and individual shareholders must pay Alabama individual income tax on dividends. The individual income tax rates range from 2% to 5%.|
|Strong Asset Protection||Alabama’s Business and Nonprofit Entities Code allows a person or persons to form an Alabama corporation. One individual may be the director, shareholder and officer of the corporation. Forming an Alabama corporation creates a legal entity separate from its incorporator, shareholders, officers, and directors. Shareholders are not liable for the debts and obligations of the corporation.|
|Investor Usability||Alabama corporations may raise capital by selling stocks and shares. The corporation is a very common form of business, so most potential investors are confident investing in an Alabama corporation.|
Alabama corporations are formed by filing a document called the Certificate of Formation with the probate judge in the county where your business’s registered office is located. Provide the original Certificate and two copies. You must also include a Certificate of Name Reservation. The Alabama corporate name reservation may be completed online.
Both the Secretary of State and probate filing fees must be included with your order.
Alabama corporations may be filed with the local probate office by mail.
If you don’t want to form the corporation yourself, you can hire us to form an Alabama corporation for $99 plus state fees.
|Alabama Incorporation Costs|
|Filing Fee||$100 payable to the Alabama Secretary of State
$50 (minimum) payable to the probate office
|Expedite Fee||Options vary by probate office|
|Alabama Corporation Maintenance Fees|
|Initial Business Privilege Tax||Must file form BPT-IN within 2 and ½ months of incorporation date|
|Annual Business Privilege Tax||$100 minimum tax based on net worth, plus $10 annual report fee (must be filed by 2 and ½ months after beginning of tax year)|
|Alabama Privilege License||License is required of most Alabama businesses. The privilege license is issued by the county probate office where your business is located (must be renewed annually by September 30)|
Alabama is one of several states that requires corporations to adopt bylaws. The bylaws must be adopted by the board of directors unless that right is reserved to the shareholders in the articles of incorporation. Corporate bylaws are essential in governing a corporation. The bylaws are the rules by which the corporation operates, including: how to settle shareholder disputes, how profits and losses are distributed, shareholder rights, and many other finer details of a corporation’s inner workings. When you sign up for any IncFast incorporation package, we include corporate bylaws and other organizational documents.
The process to form an Alabama corporation is fairly straight forward. Anyone can go online and find that information. The hard part is deciding how your corporation will be managed. How will you avoid or resolve shareholder disputes? How will you open a business bank account? This is where your corporate documents come into play. Most business transactions require you to prove that you are authorized to deal on behalf of the corporation. When you hire IncFast, you’ll get all the business documents you need to start and maintain your Alabama corporation, which makes hiring us an easy decision.
In addition, you can expect the following when you hire IncFast: