How to Form an Alabama Foreign LLC
What is an Alabama Foreign LLC?
In the United States, just because you are registered to do business in one state does not mean that you can legally do business in another state.
If you want to transact any serious business in a state other than the state in which your LLC is registered, most likely you will
have to register with the state in which you want to do business before you can legally conduct business there.
For example, a LLC that is registered in California wants to do business in Alabama.
The California LLC is a "Domestic" LLC in California and will be a "Foreign" LLC in Alabama.
The California LLC needs to register with the Alabama Secretary of State as an Alabama Foreign LLC.
The use of the term Foreign in this case refers specifically to individual US states.
The US government, including the IRS, considers a Foreign company to be a company that is registered outside
of the United States.
What is an Alabama Foreign LLC Qualification?
You want to do business in the state of Alabama but are registered as a LLC in another state.
In order to legally conduct business in the state of Alabama you must register with the Alabama Secretary of State as
a
Foreign LLC.
The process of registering as a Foreign LLC in Alabama is called
Alabama LLC Foreign Qualification.
The process of Alabama LLC Foreign Qualification is similar to the process of forming a Domestic LLC in Alabama.
Your original home LLC formation documents (frequently called Articles of Organization) and By Laws apply to your Alabama Foreign LLC.
The Officers and Directors of your home LLC will have the same roles in the Alabama Foreign LLC.
Specific requirements to qualify as a Foreign LLC in Alabama are explained below.
Once you have made the decision to Qualify as a Foreign LLC in Alabama,
an Alabama lawyer can file your documents and act as a middle man for a few hundred dollars an hour;
or you can use an online service provider like All Business Documents to perform these services.
Put the money you save with All Business Documents right where it belongs: into your new Alabama Foreign LLC.
Do I need a lawyer to Form a Foreign LLC in Alabama?
The short answer is no.
The state of Alabama does not legally require a lawyer to form an
Alabama Foreign LLC.
Our detailed
Foreign Qualification page may help you understand some
of the implications of forming an
Alabama Foreign LLC.
However, if there is
anything about forming a Foreign LLC in Alabama
that you're not sure about you should seek the advice of a competent Alabama lawyer, an Alabama accountant,
or both
before you form a Foreign LLC in Alabama.
Once you have made the decision to form a Foreign LLC in Alabama, an Alabama lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new Alabama Foreign LLC.
Do I have to Reserve a Company Name before I Form a Foreign LLC in AL?
All Alabama Foreign Limited Liability Companies are required to Reserve a Company Name prior to submitting an application to form a Foreign LLC in Alabama.
What if the Alabama Foreign LLC Name I want is already taken?
If the Name you have chosen for your new Alabama Foreign LLC is already in use by a currently active
Alabama Corporation or LLC then you will have to register a DBA Name with the Alabama Secretary of State. "DBA" is an abbreviation for "
Doing
Business
As."
In Alabama a DBA Name is called a Trade Name.
We verify that the Name you have chose for your new Alabama Foreign LLC is available
before we submit
your Foreign LLC filing to the Alabama Secretary of State.
If necessary we can register a Trade Name in Alabama for you so that you can open your new Alabama business as quickly as possible.
What do I have to do BEFORE I Form a Foreign LLC in Alabama?
- Choose a name for your Alabama Foreign LLC
You can use the same name in Alabama that you use in your home state, however, if the name of your Domestic LLC is not available you need to choose another name.
Your Alabama Foreign LLC name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Alabama Foreign LLC name that you choose must be distinguishable from the name of any other registered Alabama LLC or other
business entity and the name must also be different from any reserved names on record with the state of Alabama.
Your Alabama Foreign LLC name must not imply that it was formed for a purpose other than that stated in the
Articles of Organization for your Domestic LLC and your Alabama Foreign LLC name must not be a name that is likely to mislead the public.
The name of an Alabama Foreign LLC must include the word "Limited Liability Company" or
or the abbreviation "LLC" or "L.L.C.".
It's important to choose a good name for your Alabama Foreign LLC because if you want to change it after you qualify you
will have to file amended documents with the Alabama Secretary of State (and pay a fee).
We will check to make sure that your requested Alabama Foreign LLC name is available and conforms to all state of Alabama
Limited Liability Company naming regulations.
- File Registration Documents with the Alabama Secretary of State
In order to Qualify as a Foreign LLC in Alabama you must file Registration Documents with the Alabama Secretary of State.
In Alabama the registration documents are named "Certificate of Formation".
The registration documents must include certain specific information about your Alabama business.
If the LLC Registration Documents do not conform exactly to state of Alabama Foreign LLC requirements they will be rejected.
If you need to change any of the information on your registration documents after your Alabama Foreign LLC has been approved,
you may amend the registration documents for your Alabama Foreign LLC but you will have to pay a fee to the state of Alabama in order to make the changes official.
- Determine how you want your Alabama Foreign LLC to be taxed
The Alabama Corporate Income Tax Rate is 6.5%.
You may choose that your Alabama Foreign LLC is to be taxed as a C Corporation or S Corporation.
A C Corporation is what you may think of as a traditional Corporation like General Electric or Ford.
C Corporations pay a Corporate income tax to the state if that state taxes Corporations.
You may choose to have your Alabama Foreign LLC taxed as a S Corporation.
S Corporations "pass through" all corporate profits to the shareholders (owners) who then pay tax at their applicable personal rate.
S Corporations do not pay any Alabama Corporate Income Tax.
Both Alabama C Corporations and S Corporations are
not required to pay a minimum Alabama Corporate Income Tax.
If you form a Single Member Alabama Foreign LLC and do not specify to the IRS how you want to be taxed your Single Member Alabama Foreign LLC
will be taxed as a Sole Proprietorship.
If you form a Multiple Member Alabama Foreign LLC and do not specify to the IRS how you want to be taxed your Multiple Member Alabama Foreign LLC
will be taxed as a Partnership.
If you choose to be taxed as an S Corporation, we can prepare the S Corporation election form for your Alabama Foreign LLC and include it with
your final Foreign LLC documents.
What do I have to do AFTER I Form a Foreign LLC in Alabama?
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming an Alabama Foreign LLC doesn't take the place of obtaining a local business license, tax
registration certificate, or other required business permits.
An Alabama Foreign LLC merely creates an ownership structure that limits the owners' personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Alabama Foreign LLC within Alabama you may need to get one or more local
business licenses or permits.
The business licenses or permits that are required for your Alabama Foreign LLC vary depending on your business activities
and the specific locations within the state of Alabama in which you want to conduct business.
If your Alabama Foreign LLC will be selling products in Alabama you may be required to obtain a Reseller's Permit from the appropriate
Alabama state agency.
If your Alabama Foreign LLC will be selling products in Alabama you will also be responsible for all applicable local and state of Alabama
sales taxes if there are any.
We have the expertise to find out exactly which state and local permits that you need for your specific business.
- File the required reports for your Alabama Foreign LLC
The Alabama Annual Report includes basic information about your Alabama Foreign LLC including information on your business location as well as the names of the Officers and Directors.
Failure to submit a properly completed Alabama Annual Report to the Alabama Secretary of State on or before the
due date may subject the Alabama Foreign LLC to being administratively dissolved in the state of Alabama or having its authority to
transact business in the state of Alabama revoked by the Alabama Secretary of State.
Penalties may accrue if you fail to file any Alabama Foreign LLC Annual Report to the Alabama Secretary of State by the due date.
- Keep proper records of your Alabama Foreign LLC on file
Keep the following records on file and available at the principal business office of your Alabama Foreign Corporation:
- Names and addresses of all Members and Managers of the Alabama Foreign LLC
- Foreign LLC formation documents and any Amendments to them
- Alabama Foreign LLC Operating Agreement and any Amendments to them
- Copies of any LLC Resolutions which have been adopted by the Alabama Foreign LLC
- Copies of all tax returns and Annual Reports for the Alabama Foreign LLC for the last 3 years
- Pay your taxes to the state of Alabama
Foreign LLCs that either do business in the state of Alabama or that derive income from sources within the state of Alabama are subject
to Alabama and federal tax laws.
If you are engaged in intrastate business and derive income from other states besides Alabama, you must allocate the amount of income derived
from the state of Alabama in order to determine your Alabama state taxes.
What information do I need in order to Form a Foreign LLC in Alabama?
In order to Form a Foreign LLC in Alabama you'll need the following information about your new Company:
- The name of your new Alabama Foreign LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the Foreign LLC office in Alabama (not a PO Box)
- A description of the nature of the business you are planning to operate with the Alabama Foreign LLC
- When the Alabama Foreign LLC will start and when it will cease to exist (normally the Foreign LLC starts on the date the application is filed and will exist perpetually)
Remember -
ALL the information that you provide when you Form a Foreign LLC in Alabama becomes part of the public record.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a new Foreign LLC in Alabama.
How long does it take to Form a Foreign LLC in Alabama?
Processing times for new Alabama Foreign LLC applications vary depending on the work load of the
Secretary of State's staff.
We've found that normal processing of new Alabama Foreign LLC applications takes the state around 15-20 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your new Alabama Foreign LLC.
PLEASE NOTE: WE CANNOT GUARANTEE ALABAMA SECRETARY OF STATE PROCESSING TIMES.
The Alabama Secretary of State reserves the right to extend expedite periods in time of extreme volume, staff shortage or
equipment malfunction.
We are dependent on, and have no control over, the staff and systems of the Alabama Secretary of State.
In our experience 15-20 business days is the time it
usually takes the Alabama Secretary of State to process
a new Alabama Foreign LLC application.
We get your Alabama Foreign LLC application to the AL Secretary of State ASAP.
Once it is at the state we have no control over the new Alabama Foreign LLC application process.
How much does it cost to Form a Foreign LLC in Alabama?
The state of Alabama charges $158.00 to Form a Foreign LLC in AL.
That includes the Secretary of State's filing fee and a Certified Copy of your new Alabama Foreign LLC filing.
If you choose us to help you Form your Foreign LLC in Alabama our processing fees are $145.00.
This includes:
- Same day processing in of your new Alabama Foreign LLC order
- AL Name Check and Verification
- Prepare Certificate of Formation
- File Formation Documents with the Alabama Secretary of State
- Certified Copies of Formation Documents
- Alabama Foreign LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
If you are ready to Form an Alabama Foreign LLC, choose which Alabama
Foreign LLC options that you want below then click the Next Step button.
If you have any questions regarding our Alabama Foreign LLC services you can call us at
855-771-2477 or email us at
CorpServices@AllBizDocs.com.
Alabama Foreign LLC Cost Estimator
Our AL Foreign Qualfication Services include:
(These services are included in our processing fees)
Optional Alabama Foreign Qualification Services
(Choose options, cost is updated automatically)
-
Expedited Service - $100
explain
Normal processing time for a new Alabama Foreign LLC is 15-20 business days.
In Alabama you file a Certificate of Formation with the office of the Probate Judge in the Alabama county in which the LLC''s initial registered office is located. The Probate Judge then send the filing to the Alabama Secretary of State for indexing. For an extra $100 the Alabama Secretary of State will index a filing within three business days after they receive the application from the county Probate Judge. The $100 is an Alabama Secretary of State fee. Some county Probate Judge offices may or may not offer expedited processing.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut the document delivery time in half.
- Express Mail - $35
explain
If you really need your original approved Certificate of Formation in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Alabama Secretary of State's processing time. For the quickest turn-around time also choose the Expedited Service option.
-
S Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Alabama Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your final Foreign LLC documents pakage.
-
AL Registered Agent - $135
explain
Every Alabama Foreign LLC is required to have an address within the state of Alabama where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Alabama to receive all correspondence
on behalf of the Foreign LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many Foreign LLCs hire a Registered Agent because they don't have a physical address within
Alabama or to provide a distinct level of privacy.
We can act as your Alabama Foreign LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your AL Registered Agent services.
-
AL Good Standing Certificate - $61
explain
An Alabama Good Standing Certficate is proof of the existence of your new Alabama Foreign LLC.
The Certificate is issued by the Alabama Secretary of State and is proof that your AL Foreign LLC is not behind on any
of its Alabama Secretary of State Corporate obligations.
An Alabama Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Alabama or in any other state.
We can get your Alabama Good Standing Certificate immediately after the Alabama Secretary of State has approved your Foreign LLC filing.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Alabama Foreign LLC.
We can get your FEIN on the same day that your Certificate of Formation are approved by the Alabama Secretary of State.
You can get your FEIN before your articles are approved by the Alabama Secretary of State but it's a good idea to wait until
after approval.
Your filing may be rejected or the Foreign LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
-
Foreign LLC Kit and Seal - $99
explain
While you're not required to have a Foreign LLC Kit and Seal for your new Alabama Foreign LLC they do come in handy.
The AL Foreign LLC Kit consists of a beautiful customized binder, stock certificates, a stock ledger
and your custom Foreign LLC Seal.
The Foreign LLC Seal is used to emboss important company documents, such as stock certificates.
The binder also includes dividers so you can use it for all of your Alabama Foreign LLC record keeping.
-
Business License Research - $175
explain
Most new Alabama Foreign LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.