How to Form a C Corporation in Alabama

Introduction

If you decide to form a corporation in Alabama, it’s important to know how to do it. You don’t have to be a lawyer or accountant to get things started—in fact, most people hire an attorney or CPA for help with the paperwork and advice about their business structure. But if you don’t have a lot of money for an attorney or CPA, there are still some steps you can take on your own. In this guide we’ll walk through everything from picking the right name for your business (because that matters!) all the way through filing your annual report with the state of Alabama (which also matters).

Pick a name.

When you begin the process of forming a corporation, you must first pick a name. This name will be printed on all official documents, so it’s important that your name is unique and easy to remember. You may also want to consider how the name sounds when pronounced out loud and whether or not it’s offensive in any way (for example, no one wants their business called “Poo Poo Inc.”).

Some examples of bad names include:

• “Poo Poo Inc.”
• “Egg Salad LLC”
• “Shut Up About Your Stupid Company Name Incorporated” (or SUASTYCINC for short)

Some examples of good names include:

• The Great Big World Of Businesses (GBIB).

Choose a registered agent.

Once you’ve formed your corporation, you’ll need to choose a registered agent. A registered agent is an individual who acts on behalf of a corporation to receive legal and tax documents. You can find one online, which may be easier than searching through phone books and business directories, but if you already have someone who works for or with your company, then it might be easier just to use them as the registered agent.

As with choosing any employee or contractor for any position, it’s important that you select someone who is reliable and trustworthy.

File a Certificate of Formation with the Alabama Secretary of State.

You can file your Certificate of Formation online and pay the $100 fee with a credit card. The form is available to download on the Alabama Secretary of State website, and you should file it with the Secretary of State’s office within 30 days after filing your Articles of Incorporation with the Commercial Division.

To file your Certificate of Formation, you will need:

• A registered agent who lives in Alabama
• Your EIN from the IRS

File an annual report.

You must file an annual report by April 1 of each year. The annual report is filed with the Alabama Secretary of State and must be signed, notarized and include a statement of all officers. You can file it electronically or use the paper form for filing purposes.

Sometimes deciding to form a C corporation is enough motivation to get you going, but after that you have to know how to do it.

Sometimes deciding to form a C corporation is enough motivation to get you going, but after that you have to know how to do it. Here’s what you need to know about forming an Alabama C corporation.

First, the basics: a C corporation is taxed as a separate entity from its shareholders. This means that unlike pass-through entities (like S corporations) where income and losses flow through directly onto the shareholder’s tax return, income from a C corporation flows through separately and must be reported on its own tax return.

C corporations also require an annual report with the state.

It should also be noted that this type of business entity requires more paperwork than other types of businesses because it has more requirements similar to those required by LLCs and partnerships such as having a registered agent and obtaining a name certificate from the Secretary of State’s Office in order for your business name to be protected under state law

Conclusion

We hope that this article has helped you learn more about how to form a C corporation in Alabama. If you have any questions, please feel free to ask them in the comments section below!