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Alabama LLC Operating Agreement Forms

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The Alabama LLC operating agreement allows the ownership interest (as a percentage), and any other important information, to be listed as part of the everyday activities of the company. The document is meant to coordinate specifically the internal affairs of the entity and is to be kept by all member(s)/manager(s)/registered agent. The form is not meant to be filed with the state, although all individuals involved with the form shall be legally bound by it. It is not required by the State but is recommended to have and be signed in the presence of a notary public.

Definition – § 10A-5A-1.02(k)

Laws – § 10A-5A-1.08

Table of Contents

By Type

Multi-Member – For companies with more than one (1) owner to establish primarily the ownership and the business agreement between all of those involved with the entity.

Single-Member – For the purpose of one (1) owner so that they may be able to write the everyday business practices while maintaining separate status from their personal activities.

How to Form an LLC in Alabama

Before formally applying for an LLC in the State of Alabama the applicant should perform a search of the name they would like to use with the Secretary of State’s Business Name Search. The State will not accept any duplicate or similar names. Therefore it is best after conducting your query to not have any matching results. If you have questions about a related name you can always Contact the Secretary.

Step 1 – Name Reservation

Alabama requires that all LLC filers obtain a Name Reservation by submitting one of the following applications:

  • Online Application – $28
  • PDF Application (DomesticForeign) – $10 (add $25 to expedite) and must be sent in the mail to: P.O. Box 5616, Montgomery, AL 36103

Step 2 – Certificate of Formation/Application for Registration

After the Name Reservation has been processed (takes 2-3 days), choose which type of LLC you are going to create:

Step 3 – Filing Fee

The filing fees are as follows:

  • Domestic – *$100
  • Foreign – $150

*Probate County – There may be an additional fee depending on the Probate County in which you reside. Be sure to contact your local Probate County Office to ensure there aren’t any additional fees.

Expedited – An additional $100 can be added for the application process to be expedited.

Step 4 – Copies and Mailing

After completing the PDF application, it is required for two (2) copies to be made. The filing fee should be attached and the forms, along with the filing fee(s), should be sent to the following location:

  • Domestic – The Certificate of Formation is to be sent to the Probate Judge’s Office in the jurisdiction of the LLC’s principal office
  • *Foreign – The Application for Registration should be sent to P.O. Box 5616, Montgomery, AL 36103

*Privilege Tax Form (2017 Version) – For Foreign LLC’s only, this document must be completed and filed within the initial two and a half (2.5) months after the Foreign entity has been created.

Step 5 – Operating Agreement

There is no State requirement in Alabama to have an operating agreement, however, it is still highly recommended to have one in order to state the purpose of the business as well as the ownership interest of the members (if a multi-member LLC). The form is not to be filed with any government agency after completing, although it should be notarized and kept by all member(s) of the entity.

Step 6 – Employer Identification Number (EIN)

An Employer Identification Number (EIN) is like a Social Security Number for a business. Whereas if the owner(s) of the entity wish to establish bank accounts, credit cards, or have employees, they will need to obtain this number from the Internal Revenue Service (IRS) either by Applying Online or through Form SS-4.

  • It is free to obtain this number and takes about 10-15 minutes to do

How to Write

Step 1 – Enter the name of the entity in the header area followed by the date of the agreement. Below that, you will have two (2) options whether to check if it is a single-member or multiple member company.

Enter the member’s address(es). If it is more than three (3) members then attach an addendum.

Step 2 – Section 1, enter the name of the LLC and its principal place of business in Alabama.

Step 3 – Section 2, enter the date the initial formation articles were accepted by the Secretary of State.

Step 4 – Section 5, if there are capital contributions, they should be entered along with the party/individual’s name that is submitting the funds.

Step 5 – In Section 6, check the box related to the type of LLC. For multiple member companies, check the box and enter the percent interest for each member.

Step 6 – In Sections 7, 9, 10, 11, 12, 13, 14, and 15, the writer of the document should check the boxes and enter the designated information depending on whether or not it is a single or multiple membered entity. On the bottom of the last page, the owners should get together and sign. If the document is of major legal importance, such as if capital contributions have been made in excess of $10,000, they should request to sign in front of a notary public.


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