LLC Attorneys in Alabama
A Limited Liability Company (LLC) is a very flexible form of business entity and our LLC attorneys in Alabama can help you get one started. Because of the flexibility of its structure, the LLC has become the most popular way to legally create a business in Alabama. Some of the benefits of an LLC are that it offers limited personal liability to its owners (called members), it can be taxed as a corporation or as a partnership, it can be member-managed or manager-managed, and it can have multiple classes of ownership. Setting up an LLC in Alabama is a relatively easy process. Our LLC attorneys in Alabama can help you create your company and file the proper paperwork with the State of Alabama.
To form an LLC in Alabama, you first need to think about what it is that you want to name it. According to Alabama law, you must also add the words “Limited Liability Company” or the abbreviations “L.L.C.” or “LLC” to your company name. The name cannot imply that it is being used for a different purpose than the category you classified it under when you registered the LLC. For example, if Jones Dentistry, LLC is your proposed name, but you registered as a non-profit LLC. Also, you should check Alabama’s business name database to ensure there is not a business already in existence with the name you want. If the name you want to use is not in use, you can mail a Name Reservation Request Form for Domestic Entities to the Secretary of State’s office to reserve it.
After you have come up with a name, you should think about who will be members of the LLC. You do not have to have more than one member to form an LLC in Alabama. However, if you do have a partner or partners, you will need to determine how to divide up the profits and expenses, percentages of ownership, and other such considerations. Once you have decided how the LLC will be structured, then you are ready to move forward with filings. Call our local Alabama lawyers today if you have any questions about structuring your LLC in Alabama.
A Certificate of Formation is the document our LLC attorneys in Alabama will help you file to create the LLC. In most states, it is filed directly with the state’s Secretary of State. However, in Alabama you have to file your Certificate of Formation with the Office of the Judge of Probate in the county where the LLC’s initial office is located. After our LLC attorneys get this filed, the Probate Court will send the certificate to the Secretary of State and provide you with a certified copy.
In order for the certificate to be valid, you must include the LLC’s name, purpose, address, the names and addresses of organizers (and managers, if any), and the name and address of its registered agent. You must also attach the following information, if applicable: (1) if members have the right to admit additional members, an explanation of the terms and conditions, and (2) the circumstances, if any, under which the cessation of membership of one or more members will result in the LLC’s dissolution. You should also attach a copy of the Name Reservation Certificate from the Secretary of State. The filing fee is $100, not including the fee that goes to the Judge of Probate. Let our LLC attorneys in Alabama help you today!
LLC Creation Attorneys in Alabama
While an LLC has fewer business formalities to observe than a C or an S corporation, there are still some items that must be addressed and our Alabama LLC attorney can help. If you have an Alabama LLC you will need an agent in the state for service of process to accept legal documents on the LLC’s behalf if you are sued. The agent may be 1) an individual that resides in Alabama, 2) an Alabama business entity, or 3) an out-of-state business entity that has an office located in Alabama. Another important business consideration with an LLC is the operating agreement. Operating agreements and the articles of organization of the LLC are the authoritative source of advice as to how to do certain things that will come up from time to time in the course of the business. Operating agreements are not mandatory for Alabama LLCs, but they are strongly recommended. Our LLC attorneys can get the information from you about how it is to be structured and prepare the operating agreement for you and get it executed and filed properly.
Owning an LLC also comes with certain tax obligations. Our LLC attorney can help advise you as to some of these considerations, but you should consult a tax attorney and/or accountant for more information regarding your LLC’s tax burden. One of the biggest things to note about members and LLCs is do not co-mingle the money with your personal account. That is, don’t use your business money and/or credit card for personal expenses and vice-versa. You can schedule regular payments to your personal bank account from profits made by the LLC, but don’t pay for your personal expenses like your mortgage or personal vehicle directly from the LLC account. That could have bad consequences from a tax standpoint and in terms of weakening your personal liability protection associated with the LLC.
LLCs are great business entities for most small to medium businesses and our LLC attorneys in Alabama can get one started for you. They are very flexible compared to other corporate formations and can provide a liability shield for the members’ personal assets if done properly. It is important that everything be filed and structured correctly to maximize your chances of success while lowering your chances of tax or liability exposure. That is why if you are considering forming an LLC, it is important to discuss your business plan with an experienced Alabama LLC attorney today.
We have offices in Montgomery, Huntsville, Madison, Birmingham, Anniston, Decatur, Alabaster, Prattville, Sumiton, Millbrook. We can meet you in person, but we also can do most consultations remotely by video and phone, which can be less expensive and more convenient for everyone. If you call our office today, our local attorneys can provide a consultation over the phone, video conference, or an in person appointment as well.