Alabama Foreign LLC

Alabama has a unique foreign LLC registration process. In addition to designating an Alabama registered agent and filing a Foreign Limited Liability Company Application for Registration form, you must file a Name Reservation Request Form and have your requested name reservation approved before you submit your application. After the Secretary of State accepts your application, you’ll be issued a Certificate of Authority so you can start doing business in Sweet Home Alabama.

Prefer to file on your own? No problem, but you’ll still need an Alabama registered agent. Hire us as your local registered agent and use our 3-step guide to foreign LLC registration in Alabama to get started.

How to Register a Foreign LLC in Alabama

To register your business to operate in another state, you need to go through a process called “foreign qualification.” In Alabama, there there main steps to getting your LLC foreign qualification that you must complete to receive your Certificate of Authority.

1. Submit a Name Reservation Request Form
2. Appoint an Alabama Registered Agent
3. File an Alabama Foreign Limited Liability Company Application for Registration Form

1. Submit a Name Reservation Request Form

Before you file your Alabama foreign LLC application, you need to reserve the name you’ll operate under in Alabama. To do so, you’ll need to file a Name Reservation Request Form with the Secretary of State. The filing fee is $25 (plus a small processing fee for credit cards).

Before you fill out the form, you must make sure that your name satisfies Alabama naming requirements.

1. Your name can’t be the same as or too similar to a name already registered with the Secretary of State. Small changes in spelling or punctuation may not be enough to distinguish your name from another. If you’re not sure about your name, contact the Secretary of State’s Office. Use the Alabama Business Entity Search tool to make sure that the name you want to use is available.
2. Your name can’t contain certain words without permission. If your name includes the terms architect, engineer, insurance, bank, or trust, you must include a letter of approval from the agency in charge of regulating that industry along with your name reservation form. For example, to use “engineer,” get a letter from the Alabama Board of Licensure for Professional Engineers.
3. Your name must include an entity identifier, like “LLC.” All LLCs must include the phrase “limited liability company” or an abbreviation like “LLC” or “Ltd” in their name.

You’ll need to choose a fictitious name to request if your name is unavailable or doesn’t meet naming requirements. You can list this name on your name reservation form—you won’t need to make a separate fictitious name filing.

You must provide the following information on your name reservation request form:

• Entity type
• Legal name of your LLC
• Fictitious name (if applicable)
• The name and address of your LLC (this information will go on the certificate you receive from the state after your application is approved)
• The mailing address for your certificate
• Signature of the requester
• Credit card payment information (if applicable)

You can mail your form, along with check, money order, or credit card information, to:

Secretary of State
Business Services
PO Box 5616
Montgomery, AL 36103

Or, you can file online using Alabama Secretary of State Online Services.

2. Designate an Alabama Registered Agent

When you register as a foreign LLC, you need to appoint an Alabama registered agent. The registered agent’s job is to accept legal documents, such as service of process, on behalf of your company.

Having a registered agent physically located in the state of Alabama ensures that you’ll always be able to receive legal documents from the state. This is important because missing a crucial legal notice could affect your ability to continue doing business in Alabama.

When it comes to appointing an Alabama registered agent, you can find someone in the state to take on this responsibility or you can hire registered agent service.

The advantage of choosing a registered agent service like us is that we’ll never skip town and leave you hanging. We’re dependable—and convenient, too. We’ll upload your documents to your online account as soon as we receive them so you never miss a notice or dealine. And you’ll never have to check up on us to make sure we’re doing our job.

3. File an Alabama Foreign Limited Liability Application for Registration Form

In many other states, you need to obtain a Certificate of Good Standing from your home state to apply for foreign qualification. Luckily, in Alabama, this isn’t the case. Once your name reservation is approved, the final step is filing an Alabama Foreign Limited Liability Application for Registration form.

The filing fee is $150 (plus a small processing fee if you use a credit card).

Here’s what you need to include on your application:

• Legal name of your LLC in your home jurisdiction
• Fictitious name your LLC will operate under in Alabama (if applicable)
• An attached copy of your LLC’s name reservation certificate
• The street address of your LLC’s principal office (no PO boxes)
• Your LLC’s mailing address (if different from your street address)
• The full name and address of the person or entity that prepared your form
• Your LLC’s jurisdiction of formation
• Date of your LLC’s formation
• Name of your Alabama registered agent
• You registered agent’s street address (no PO boxes)
• Your registered agent’s mailing address (if different from the street address)
• Whether or not your LLC is registering as a Non-Profit, Series, or Non-Profit Series LLC
• The date your LLC will begin transacting business in Alabama
• Name and signature of the authorized person filing the application
• Credit card payment information (if applicable)

This application also contains a page where you can indicate if your business is a small business or a minority- or woman-owned business. This is information is optional.

You can mail your form, along with check, money order, or credit card information, to:

Secretary of State
Business Services
PO Box 5616
Montgomery, AL 36103

Note: If you mail your application, you must include two copies of your complete form along with a self-addressed, stamped envelope.

You can also file online through Alabama Secretary of State Online Services.

Alabama Foreign LLC Registration FAQs

How much does foreign LLC qualification cost in Alabama?

It costs $150 to file a Foreign Limited Liability Application for Registration form. However, before filing your application, you must submit and receive approval for a Name Reservation Request Form. In total, filing will cost $175, plus any credit card processing fees.

How long does it take to get a Certificate of Authority?

If you file online, you should receive your Certificate quickly, as forms are processed as soon as they are received. Mailed filings can take up to 2 weeks to be processed once received, plus the time it’ll take for the Certificate to be mailed to you.

Do I need a Certificate of Good Standing from my home jurisdiction?

Nope. Out-of-state LLCs registering to do business in Alabama are not required to provide a Certificate of Good Standing from their home state.

Will I need to file an annual report in Alabama?

No. Foreign LLCs do not need to file an annual report with the Secretary of State.

How do I know if I need to register to do business in Alabama?

According to Alabama state statutes, you must register in order to “transact business” in the state (Ala. Code §10A-1-7-.01). The law doesn’t define what exactly “transacting business” means. Still, generally speaking, the following are usually considered to be transacting business in any state:

• Opening and operating an office, warehouse, or store
• Hiring employees who work in that state
• Taking a contract in that state

Actions like opening a bank account or purchasing property in another state don’t usually qualify as transacting business. If you’re unsure whether you need to register or not, we suggest consulting an attorney.

Will I have to pay taxes in Alabama?

Yes. All business entities registered to do business in Alabama are required to pay the Alabama Business Privilege Tax and any other applicable taxes (for example, if you operate a chain of convenience stores, you’ll probably need to pay the State Tobacco Products Tax).

You can register for taxes online with the Alabama Department of Revenue. For details on what taxes you’ll need to pay, we suggest consulting a CPA.

Ready to start doing business in Alabama? Register your foreign LLC today. Get Started!