Registering a Business in Alabama
To register your business in Alabama, you need to pay the $100 state filing fee to obtain a general business license. You may need more than one license, which can increase your initial business costs.
The first step to forming an LLC in Alabama is choosing and reserving a unique name. This can be done by filling out the Alabama LLC Name Reservation Request Form either on paper or online.
If your business conducts any business under a name that isn’t your own, you will need to file and register a DBA in Alabama with a $30 fee. Registration is not mandatory but alerts others of the name’s use.
Business Licensing and Cost
Alabama business licenses can cost anywhere from $15 to several hundred dollars, depending on the business type. More information can be found at the Alabama DOR.
Other LLC filing costs may include legal services, professional fees, and other expenses. It’s essential to budget accordingly.
Steps to Register a Business in Alabama
Step 1: Determine the uniqueness of your business name. Utilize a business registration service or search on the Alabama Secretary of State website.
Step 2: Register your chosen Alabama business structure by filing documents with the Secretary of State, creating an operating agreement, and applying for an EIN from the IRS.
Step 3: Obtain necessary business licenses and tax IDs based on your business activities. Typical requirements include a business license and a sales tax ID.
Step 4: Establish a location for your business in Alabama and obtain the necessary equipment and supplies to operate effectively. Startup costs may include equipment, inventory, marketing, and more.