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Alabama
Corporate Name Endings
- The name of the corporation shall contain the word "Corporation",
"Incorporated", or an abbreviation. If the corporation is a banking
corporation the words "Bank", "Banking" or "Bankers" may be used.
The name may not contain language stating or implying that the
corporation is organized for a purpose other than that permitted
by the articles of incorporation. The name cannot be the same as
or deceptively similar to the corporate name of a domestic corporation
or a foreign qualified corporation.
Corporation Requirements
- Director Information
- Minimum Number - One or more.
- Residence Requirements - None.
- Age Requirements - Directors must be a natural person at least
19 years of age.
- Directors are not required to be listed in the articles of
incorporation.<
- Officer Information
- Officers are not required to be listed in the articles of
incorporation.
- Stock Information
- An increase in shares or par value does not affect initial
filing fees.
- Corporate Records
- The articles of incorporation and the minutes of shareholders' meetings
and records of all actions taken by shareholders without a meeting for the past
three years must be kept at the corporation's principal office. Further, a list
of names and business addresses of current directors and officers and the most
recent annual report or public record information must be kept at its principal
office.
Taxes and Fees
- Annual Statements
- Annual statements are required as part of Form PSA. See "Taxes"
section below. The fee is $10 annually.
- Taxes
Businesses must generally file Alabama Form PSA,
Alabama Business Privilege Tax Return, Corporate Shares Tax Return, and
Annual Return, within 2½ months after the beginning of their tax year. For
corporations filing on a calendar year basis, the return must be filed by
March 15th of the current year.
- Alabama Business Privilege Tax:
- The minimum privilege tax imposed is $100 and the maximum is
generally $15,000. The tax is based on the following formula that looks
both at the taxable income of the corporation and the net worth of the
corporation. The tax rate is determined by the taxable income of the
corporation. If the taxable income is between $0 and $1 the tax rate
is $.25 per $1,000 of net worth. If taxable income is more than $1 but
less than $200,000, the tax rate is $1 per $1,000 of net worth. If taxable
income is more than $200,000 but less than $500,000, the tax rate
is $1.25 per $1,000 of net worth of the corporation. If taxable income is
more than $500,000 but less than $2,500,000, the tax rate is $1.50 per
$1,000 of net worth of the corporation and if the taxable income more than
$2,500,000 the tax rate is $1.75 per $1,000 of net worth of the corporation.
- Income Tax Rate:
- The rate is 6.5% of net income.
- S Corporation
- S Corporation status is recognized by the State of Alabama. A separate
state election from the federal election is not required.
- License Requirements
- Alabama requires most businesses to obtain a license and pay a fee if
operating in the state. Please check with the state to make sure your
business is complying with the license requirements for your particular
profession.
For more information on taxes, visit
http://www.ador.state.al.us.
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