Corporate Name Suffix
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 www.ador.state.al.us
