Initial reports are due 2 ½ months after initial set up. Each year thereafter, C corps and S corps annual reports are due 2 ½ months after the end of the year for the company, i.e. if end of year is Dec 31st annual report is due March 15th. For LLC’s the annual report is due 3 ½ months after year end. In the above example, the annual report would be due April 15th.

The penalty for failure to timely file an Alabama business privilege tax return by the due date is 10% of the tax shown due with the return or $50, whichever is greater. The penalty for failure to timely pay the amount of tax shown due on an Alabama business privilege tax return equals to 1% of the amount of tax shown due on the return for each month the tax is unpaid – not to exceed 25% of the amount shown due on the return.
IncParadise does not currently prepare the Alabama Business Privilege Tax Return & Annual Report. However, you may download copies of the required forms at the Alabama Department of Revenue’s website.

Pricing $89.00 per year, special for pre-pay $40 per year

Don’t get fooled by companies claiming the lowest price and increasing it later. Our pricing is very simple. We charge $89 per year. We also have few specials. Whenever you decide to pre-pay additional years you get them for $40/year.

Why you need a Registered Agent?

Alabama State laws require business entities to maintain a Resident Agent in the state that you form your business. The agent’s name and office address are included in the Articles of Incorporation or Articles of Organization to give public notice of where to send important documents to your business entity.

If you need Registered agent in other State than Alabama, We offer Registered Agent service in all 50 States.

State Fee for changing Alabama Registered Agent

Change of Registered Agent: $100.00 filing fee required by the State of Alabama for filing a registered agent change to us + our fee (1 year – $89.00, 2 years – $129.00, 3 years – $169.00)

Registered Agent Requirements

Each corporation must continuously maintain in this state: (1) A registered office that may be the same as any of its places of business; and (2) A registered agent, who may be: (i) An individual who resides in this state and whose business office is identical with the registered office; (ii) A domestic corporation or nonprofit domestic corporation whose business office is identical with the registered office; or (iii) A foreign corporation authorized to transact business in this state or nonprofit foreign corporation authorized to conduct affairs in this state whose business office is identical with the registered office.

Alabama Name Reservation. The name must be reserved before filing Articles.

When you file paperwork with Alabama Secretary of State to set up Corporation this is what you will receive:

A publication on economic development, “Site Selection” has named Alabama the 6th best state in terms of business climate. The ranking was a part of their Annual State Business Climate survey. Economic development in Alabama has shown a positive growth in recent times with new capital investment totaling $4.2 billion in 2016 and between 2011 and 2016; the capital investment was $28.5 billion.

Some of the top brands of the world have set up companies in Alabama and this includes Toyota, Mercedes-Benz, Aerojet Rocketdyne, Blue Origin, Sparks Energy, Leonardo, Lake Homes Realty, Autocar, Alabama Drydock and Shipbuilding Company, and many others.

Why Choose Alabama for Incorporation?

Why should you opt for Incorporation in Alabama? We are talking of a state that provides not only one of the best business climates but also incentives and benefits to small and medium sized businesses (SME’s). Let’s quickly take a look at some of them:

Tax Environment

One of the reasons why company incorporation in Alabama makes good business sense is that businesses can enjoy low tax burden in the state. An Alabama Corporation will be subject to State Corporate Income Tax at a flat rate of 6.5% of the net income. If you have formed an S Corporation then you will be able to benefit from “pass through taxation”. This simply means that you as the owner will pay income tax on your income and not on the income of your business. As a result, the business can enjoy overall growth and is free from tax and other financial burdens.

Industrial Development Grant

If you set up a company in Alabama under which, a project initiated your business is undertaken or sponsored by one or several investment companies and where your predominant business activity or trade constitute warehousing, research, or industrial activities then your business will be eligible for Industrial Development Grant. The amount of grant you can receive will be dependent on the total amount of capital investment for example: if your capital investment is between $200,000 and $499,999 then you can get a grant of 3.5% or a minimum of $10,000.

Industry Incentives

There are a variety of industry incentives available to businesses post incorporation in Alabama. Some of the common incentives or credits include:

• If your business specializes in manufacturing then use of raw materials for manufacturing will be exempt from sales and use tax.
• The state sales and use tax is abated for several industries and most prominent of them include coal mining projects.
• Businesses are exempt from utility gross receipts tax especially on electro-thermal manufacturing processes, where natural gas is being used to convert raw materials to finished products, etc
• After you set up a company in Alabama, you can enjoy annual cash refund of almost 3% of the previous year’s gross payroll for a period of 10 years.

How do you incorporate in Alabama?

Company Incorporation in Alabama is one of the best business decisions one can make. There are several benefits that you will be able to enjoy but first things first; you need to register your business in the state. There are several requirements that are necessary for registering your C or S Corporation. We at incparadise.net have a team of specialists who can guide you towards setting up an Alabama C Corporation, S Corporation, or an LLC in the shortest possible period.

Here is a step by step procedure towards Incorporation in Alabama

1. Type of Business: You can form different types of business entities under Domestic or Foreign entities and this includes Limited Liability Companies (LLC), Limited Partnerships (LP), Limited Liability Limited Partnerships (LLLP), Non-Profit Corporations, and Corporations. It is important to identify in advance the type of business you want to set up in Alabama.
2. Business Entity Name: The business entity naming process is as important as company Incorporation in Alabama or registration of business process. You have to ensure the name of your Alabama Corporation contains the words “Corporation”, “Incorporated” or an abbreviation like “Inc.” or “Corp.” You have to not only identify a name but also ensure it is not in use. You can search the name database of Alabama Secretary of State.
   You will then have to reserve the name and obtain a name reservation certificate. It is important to note that without the certificate, company incorporation in Alabama is not possible.
3. Registered Agent: Every business entity needs to name a Registered Agent as mentioned in Title 10A – Alabama Business and Nonprofit Entities Code, Section 10A-1-5.31. There are different types of services, a registered agent provides including initiating incorporation in Alabama. As one of the top registered agents in Alabama, incparadise.net, can also receive any and all legal and business related paperwork on your behalf.
4. Certificate of Incorporation: You will need to file a Certificate of Incorporation for a Domestic Corporation or Certificate of Formation for Foreign Corporation. We can always file on your behalf through the standard process online or through expedited process.
5. Date Stamped Copies: As a part of the process of company incorporation in Alabama, we will ensure, you receive Certified Copy and Certificate of Status verifying the state of Alabama has filed as well as formed your corporation.

Costs and Fees associated with Alabama Incorporation

What would it cost to set up company in Alabama?

Check Fees here!

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Are you concerned about your decision to register a new business in Alabama? Do you wonder if it is a right decision or not? You don’t have to be concerned as Alabama provides a really good platform that aids in faster and higher business growth. Whether you form an LLC or register a Corporation, there are plenty of benefits in store for you.

Business Growth Incentive for New Businesses

We can help you register a new company in Alabama, so that you are able to benefit from advantages that include Tax credits, incentives, and Abatements that the state offers to new businesses. These will ensure long term growth and profitability for Corporations, LLC, Partnerships etc.

Let’s take a look at some of the advantages:

Advantage#1: Tax Credits and Abatements

There are a lot of benefits in being a startup company in Alabama. The state offers a wide range of Tax credits and Abatements to small and medium sized businesses. These incentives are a part of the larger benefit that your business can derive from and includes the following:

Sales and Use Tax Abatement

Businesses will be required to follow proper procedures to ensure they qualify for this Abatement. A business can get an abatement in state as well as local non-educational portion of construction related sales and use taxes. A startup company in Alabama will also get Abatement (post qualification) on the general state sales tax (4%) and the state manufacturing machinery and equipment tax (1 and 1/2%). Local tax that has not been earmarked for education can also be abated. Apart from this, if a business incorporates personal and real property into their qualifying project then they can derive abatement on property tax for a maximum period of 20 years.

There are several other abatements that a business can benefit from including Chapter 9B Abatements, Chapter 9G Abatements, and Chapter 9C Brownfield Development Abatements among others.

Tax Credits

If you register a new business in Alabama then you can take advantage of various tax credits being offered by the state. Some of the important tax credits they offer include:

• Alabama Small Business and Agribusiness Jobs Act Credit: A small business that employs 75 or less employees may qualify for Income Tax Credit equal to $1,500. This tax credit is available to businesses under Section 40-18-390 through Section 40-18-394, Code of Alabama 1975.
• Dual Enrollment Credit: Any business that makes contributions towards educational expenses associated with the Career-Technical Dual Enrollment Program may be qualified for tax credit of 50% on total contributions.
• Investment Credit: Businesses can benefit from investment credit for approved projects that help in creating new jobs in the state. This credit amounts to 1.5% of qualified capital investment annually.

Advantage#2: Enterprise Zone Program

The Enterprise Zone Program provides tax incentives to businesses that locate and expand within a designated Enterprise Zone in accordance to The Alabama Enterprise Zone Act, 1987. It simply means, when you register a new company in Alabama, it has to be situated in an “Enterprise Zone” like Greene, Lowndes, Monroe, Coosa, Bullock, and Winston among others.

Apart from a variety of state-level tax incentives, your business may also qualify to receive local tax as well as non-tax incentives for expanding within the said designated Enterprise Zone.

Download Alabama Enterprise Zone Procedures Manual​​.

Are there any Disadvantages of Incorporating in Alabama?

If you are wondering what disadvantages there are, then the truth is if you register a new business in Alabama there are very few. One of them is that if you register a Corporation in Alabama it will be monitored by federal, state as well as local agencies. As a result, you might have to handle larger amount of paperwork and ensure they are in accordance with state regulations. On the other hand, if you form an LLC then it may get dissolved if it goes bankrupt or a member dies unlike with Corporations, which can exist forever.

The most important thing to note is that the benefits or advantages that businesses can derive in the state of Alabama outweigh the disadvantages. If you are planning to establish a startup company in Alabama then it is the best business decision you can make!

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