How to Form an S Corporation in Alabama

Introduction

To form an S corporation in Alabama, you must be able to meet the requirements for eligibility and file an election with the IRS. Additionally, you’ll need to choose a name for your corporation, file Articles of Incorporation with the Secretary of State, adopt bylaws and issue shares of stock.

To be able to form an S corporation, you must already have a domestic Alabama corporation.

Before you can form an S corporation in Alabama, you must already have a domestic Alabama corporation. To form a domestic corporation, you must file Articles of Incorporation with the Secretary of State’s office.

The articles of incorporation will include:

●    The name of your company

●    Its registered agent’s address

●    Its purpose and business activities

Once your domestic corporation has been created, it will be time to create its first tax year with the IRS (also known as forming an S Corporation).

Before you can file your election to become an S corporation, there are a number of requirements that your corporation must meet:You have 100 or fewer shareholders;You have only one class of stock; andYour shareholders are all individuals, estates or certain types of trusts.

You must have 100 or fewer shareholders.

You must have only one class of stock.

Your shareholders must be individuals, estates or certain types of trusts.

The IRS website offers a helpful may to determine if your business is eligible for S corporation status using the Are You Ready to Elect S Corporation Tax Status? wizard (https://www.irs.gov/businesses/small-businesses-self-employed/are-you-ready-to-elect-s-corporation-tax-status).

The IRS website offers a helpful may to determine if your business is eligible for S corporation status using the Are You Ready to Elect S Corporation Tax Status? wizard (https://www.irs.gov/businesses/small-businesses-self-employed/are-you-ready-to-elect-s-corporation-tax-status).

The tool will ask you questions about your income and the nature of your business, helping you determine if it would be appropriate for an S corporation election.

If this sounds like something that could help you determine whether or not you’re ready for an S corporation, head over to the IRS website and give it a shot!

You can use our tool to create a custom S corporation election form.

You can use our tool to create a custom S corporation election form. Our tool will help you complete the form, and it will also help file your form with the IRS and Alabama Secretary of State.

To become an S corporation in Alabama, you must choose an available name for your corporation, file Articles of Incorporation with the Secretary of State, adopt bylaws and issue shares of stock.

To become an S corporation in Alabama, you must choose an available name for your corporation, file Articles of Incorporation with the Secretary of State, adopt bylaws and issue shares of stock.

You can use any name that complies with state rules that do not conflict with federal law or corporate laws in other states. You can also establish a separate bank account for your business if you wish.

Conclusion

Congratulations! You have successfully formed an S corporation in Alabama.