Whenever forming a business, you must decide between the different structures of organizing the business like limited liability company, or a corporation. But for the last few years the limited liability company model of business organization has become popular in the world. An Alabama limited liability company refers to those limited liability companies that are present in the state of Alabama. The difference of limited liability companies in Alabama is because of the difference in rules and regulations that govern the setting up of a limited liability company. As each state has different set of laws and rules therefore the establishment of the LLC will differ accordingly.
Just like a corporation, a limited liability company maximizes the protection of assets of the business for the business owners. The people of Alabama are impressed by this kind of flexible approach in comparison to the corporation. According to many, the advantage increases all the more as a limited liability company needs minimal maintenance, less paperwork to set up and fewer meetings. The owners of both the LLC and corporation enjoy full immunity from the accrued business debts. This means that if the company goes bankrupt then the owners are not liable to pay off the debts accrued during the running of the business.
In order to form a limited liability company in Alabama you have to file Articles of Organization with the State Secretarys Office. After the approval of the agency the filing of the documents is done. The company is then recognized as a limited liable company. However, it all starts in Alabama by registering the LLC name. Always remember that the name chosen for the limited liability company should be unique and different from any existing company name in the same state or city.
The name of the LLC that you select must have the following:
* It should contain the words ”limited liability company” or the abbreviation ”LLC”. The word ‘limited’ can be abbreviated as ”Ltd” and the word ”Company” as co.
* It should be different from any other registered limited liability company of Alabama or other business entity and other such reserved names in the records.
* It should not implicated to be formed for objective other than that stated in the article.
LLCs are gaining the people’s support as small businesses are really getting huge benefits from LLC. LLC also helps in taxation. Many people think that they need an attorney for the formation of LLC but that is not a truth. You yourself can do the paperwork and file it or can take the help of a professional service. An Alabama limited liability company can surely turn around the fortunes of small business owners in Alabama.