Alabama (United States of America)

The government of Alabama is established under the provisions of the 1901 Constitution of Alabama. Like other states within the United States, Alabama's government is divided into Legislative, Executive, Judicial branches.

• Alabama is governed by a bicameral legislature and a governor and cabinet. The legislature consists of the Senate, with 35 members, and the House of Representatives, with 105 members.
• The Alabama Executive branch consists of the Governor of Alabama, the Lieutenant Governor of Alabama, the Governor's Cabinet, several popularly elected executive officials, and the executive staff.
• The Judicial branch is responsible for interpreting the state's Constitution and applying the law in state criminal and civil cases. The state's highest court is the Supreme Court of Alabama.

According to the U.S. Bureau of Economic Analysis, the 2019 total gross state product (GSP) was $202.94 billion, or $41,389 per capita. Alabama's 2019 GSP increased 2.3% from the previous year.

The state of Alabama has invested in manufacturing, business services, aerospace, education, health care, banking, retail trade, automotive, chemicals and various heavy industries, including mineral extraction, steel production and fabrication. In contrast to the primarily agricultural economy of the previous century, this was only about 1% of the state's gross domestic product.

Currency:

United States Dollar (USD)

The business laws of Alabama are user-friendly and often adopted by other states as a standard for testing business laws. As a result, the business laws of Alabama are familiar to many lawyers both in the US and internationally. Alabama has a common law system.

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Type of Company/Corporation:

One IBC supply incorporation in Alabama service with the common type Limited Liability Company (LLC) and C-Corp or S-Corp.

Business Restriction:

The use of the bank, trust, insurance, or reinsurance within the name of the LLC is generally prohibited as limited liability companies in most states are not allowed to engage in a banking or insurance business.

Company Name Restriction:

The name of each limited liability company as set forth in its certificate of formation: Shall contain the words "Limited Liability Company" or the abbreviation "L.L.C." or the designation "LLC";

• May contain the name of a member or manager;
• Must be such as to distinguish it upon the records in the office of the Secretary of State from the name on such records of any corporation, partnership, limited partnership, statutory trust or limited liability company reserved, registered, formed or organized under the laws of the State of Alabama or qualified to do business.
• May contain the following words: "Company," "Association," "Club," "Foundation," "Fund," "Institute," "Society," "Union," "Syndicate," "Limited" or "Trust" (or abbreviations of like import).

Company Information privacy:

No public register of company officers.

Just 4 simple steps are given to start a business in Alabama:

• Step 1: Select basic Resident/Founder nationality information and other additional services that you want (if any).
• Step 2: Register or log in and fill in the company names and director/ shareholder(s) and fill in the billing address and special request (if any).
• Step 3: Choose your payment method (We accept payment by Credit/Debit Card, PayPal, or Wire Transfer).
• Step 4: You will receive soft copies of necessary documents including Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in Alabama is ready to do business. You can bring the documents in the company kit to open a corporate bank account or we can help you with our long experience of Banking support service.

* These documents required to incorporate a company in Alabama:

• Passport of each shareholder/beneficial owner and director;
• Proof of residential address of each director and shareholder (Must be in English or certified translation version);
• The proposed company names;
• The issued share capital and par value of shares.

Read more:

How to start a business in Alabama, USA

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Share Capital:

There is no minimum or a maximum number of authorized shares since Alabama incorporation fees are not based on the share structure.

Director:

Only one director required

Shareholder:

Minimum number of shareholders is one

Alabama company taxation:

Companies of primary interest to offshore investors are the corporation and the limited liability company (LLC). LLCs are a hybrid of a corporation and a partnership: they share the legal features of a corporation but may choose to be taxed as a corporation, partnership, or trust.

• Us Federal Taxation: US Limited Liability companies structured for partnership tax treatment with non-resident members and which conduct no business in the US and which have no US-source income are not subject to US federal income tax and are not required to file a US income tax return.
• State Taxation: US limited liability companies that conduct no business in the recommended states of formation with non-resident members are generally not subject to state income tax and are not required to file a state income tax return.

Financial statement

Local Agent:

Alabama law requires that every business have Registered Agent in the State of Alabama who may be either an individual resident or business that is authorised to do business in the State of Alabama

Double Taxation Agreements:

Alabama, as the state-level jurisdiction within the US, has no tax treaties with non-US jurisdictions or double tax treaties with other states in the US. Rather, in the case of individual taxpayers, double taxation is minimised by providing credits against Alabama taxation for taxes paid in other states.

In the case of corporate taxpayers, double taxation is minimised through allocation and appointment rules related to the income of corporations engaged in multi-state business.

License Fee & Levy:

Every person who commences business before July 1 shall be subject to and shall pay the annual license for such business in full. Unless otherwise specified in the enclosed schedules, the minimum annual license shall be $75.00.

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Payment, Company return due date

• Corporations:

For Corporations on a calendar year, the due date is April 15th. For Corporations on a fiscal year other than a calendar year and June 30 year end, the due date is the 15th day of the 4th month following the end of the corporation's fiscal year.

• Limited Liability Company

For Limited Liability Entities, the Alabama business privilege tax return is due no later than two and a half months after the beginning of the taxpayer's taxable year. The 2020 Form PPT for a calendar year limited liability entity would be due on March 15, 2020.