How to Start a Corporation in Alabama — Step by Step

Alabama is unusual: it has historically wanted you to reserve your corporate name before you file the Articles of Incorporation, and to reference the reservation on the formation paperwork. So the very first move is confirming the name is available, then locking it.

Start with the Secretary of State's name availability search. Search your exact name and close variants. A corporate name has to be distinguishable from every entity already on file in Alabama — corporations, LLCs, limited partnerships, and reserved names all count. Names that differ only by punctuation, spacing, or filler words like "the" may not clear.

Naming rules for corporations

• The name must include a corporate designator: "Corporation," "Incorporated," "Company," or an abbreviation such as "Inc.," "Corp.," or "Co."
• It cannot imply a purpose the corporation isn't authorized for, or suggest a government agency.
• Words like "bank," "trust," "insurance," or "engineering" may require sign-off from the relevant Alabama regulator before the name clears.

Once the name checks out, file a name reservation with the Secretary of State. The reservation holds the name for a set period while you assemble the rest of the filing.

Before the Articles of Incorporation can be filed, you need a registered agent chosen and willing to serve. Alabama requires every corporation to maintain one continuously, and the agent's name and Alabama street address go directly into the formation document.

The registered agent receives service of process — lawsuits, subpoenas, summonses — and official mail from the state on the corporation's behalf. The address has to be a physical Alabama location, not a P.O. box, staffed during normal business hours.

Who can serve

• You or another individual: Any Alabama resident with an in-state street address who is reliably available during business hours. That address becomes public.
• A commercial registered agent service: A business Alabama has cleared to act as an agent on your behalf. It keeps its own address on the public record instead of yours, guarantees availability, and forwards documents when they arrive.

Founders who work from home or split time between states usually go with a commercial service, both for privacy and to be sure a process server never shows up when no one is there to accept.

The Articles of Incorporation is the document that brings your corporation to life in Alabama's official records. You file it with the Alabama Secretary of State, Business Services, either online through the state portal or by mail.

What the Articles include

• Corporate name with its required designator, matching your name reservation
• Registered agent name and physical Alabama street address
• Authorized shares — the total number of shares the corporation may issue (you don't have to issue them all at formation)
• Incorporator name and address — the person forming the corporation
• Principal office address

The number of authorized shares is worth a moment's thought. It sets a ceiling on how much stock the board can issue later, so give yourself room — a common approach is to authorize far more shares than you plan to issue initially, leaving space for future investors and employee equity.

Processing

Online filings generally clear same day to about one business day. Mail filings run roughly seven to ten business days, with an expedite option for an added state fee. The receipt card on this page shows current amounts.

Filing the Articles creates the corporation, but it doesn't organize it. That happens at the organizational meeting, where the incorporators or the initial directors formally set the company up to operate.

What happens at the organizational meeting

• Adopt corporate bylaws — the internal rulebook covering how directors are elected, how meetings run, what officers exist, and how decisions get made
• Appoint the initial board of directors (if not named in the Articles)
• Elect officers — at minimum a president and a secretary; often a treasurer as well
• Authorize and issue stock to the founding shareholders in exchange for their contributions
• Approve a corporate bank account and other startup resolutions

Keep written minutes of this meeting and file them in your corporate records book. This paperwork is exactly the kind of formality courts look for when deciding whether to respect the liability shield. Our operating-agreement page (which, for a corporation, covers bylaws and the shareholder/director/officer structure) goes deeper on what belongs in your bylaws.

An Employer Identification Number is your corporation's federal tax ID — the business counterpart to a Social Security number. Every corporation needs one; there's no version of a corporation that can operate on an owner's SSN the way a single-member LLC sometimes can.

You'll use the EIN to open a bank account, file federal and state tax returns, run payroll, and make the S corporation election if you go that route. Apply free through the IRS EIN Assistant; the number issues immediately once the application is complete. The online tool requires a US Social Security number or ITIN for the responsible party — applicants without one file Form SS-4 by fax or mail. Our EIN guide walks the whole application field by field.

Here's where Alabama's split-agency setup shows up. Formation lives with the Secretary of State, but tax lives with the Alabama Department of Revenue. After incorporating, you register the corporation with the DOR for the taxes that apply to your business.

What to expect

• Business Privilege Tax — the annual tax on the privilege of doing business in Alabama, filed with the DOR (corporations file Form CPT). There's an initial return due shortly after you form, then an annual return thereafter.
• Corporate income tax — if your corporation is taxed as a C corporation
• Withholding and sales tax — if you hire employees or sell taxable goods and services

Registering promptly keeps you ahead of the initial Business Privilege Tax deadline, which arrives sooner than most founders expect after formation.

Separate finances are the backbone of the liability shield. Run every dollar of business income and expense through a dedicated corporate account.

What banks typically ask for

• Filed Articles of Incorporation
• EIN confirmation from the IRS
• Corporate bylaws and a banking resolution from your organizational meeting
• Government-issued ID for authorized signers

Ongoing obligations

• Business Privilege Tax filed annually with the Department of Revenue
• Annual meetings of shareholders and directors, with minutes recorded
• Registered agent kept current — file a change with the Secretary of State if the agent or address changes
• Federal and state returns appropriate to your tax election

Compliance for a corporation is more about rhythm than difficulty: hold the meetings, keep the minutes, file the privilege tax, and keep the agent current. Miss those, and the state can eventually dissolve the corporation administratively.