It is a better option to keep your business separate from your personal life, and the first step towards that is forming a business entity such as a corporation. Various states have various rules and Alabama is no exception regarding incorporation.

How to Incorporate In Alabama:

- Once you have decided on the kind of corporation you want to form, the next important step is to decide on a name for your corporation, which has to be unique and not a copy of any other registered business’s name or any name that has been reserved. Certain words and phrases are restricted, and it is better to choose a name in compliance with applicable state laws and it is mandatory for the name to have an ending such as “incorporated” or “Corporation.”

- The articles of incorporation have to file with the county probate judge who will then forward a copy of the Articles to the Alabama Secretary of State. Certain information are mandatory to be included long with the article of incorporation in the state of Alabama such as

- The company has to have a minimum of one incorporator or more and they have to sign the Articles of incorporation along with their name and address.

- A statement of the corporate purpose has to be filed along with the Articles of incorporation.

- The list of share classes and the number of shares in each class has to be filed too with the Articles.

- The name and address of the registered agent.

- The address of the initial registered office as well as the principal office address of the entity.

- Names and addresses of each affiliate.

- It is not mandatory to give a list of the directors or their names and addresses along with the articles. The entity must have at least minimum one director above 19 years of age who need not be a resident of Alabama or a shareholder of the entity.

- Bylaws provide guidelines regarding the responsibilities, rights, and duties of directors, shareholders and officers and have to be formulated by seeking legal counsel. They have to be maintained at the principal executive office of the corporation and need not be filed.

- Officers have to be appointed to prepare, maintain and record meeting minutes and for authenticating corporate records.

- The filing fee in Alabama is $95 for filing the Articles of incorporation, processing time about 40 business days and the fee for reserving a name is $10.

- Remember that an annual report has to be filed with the Secretary of State from January 1 to march 1.

- Business corporations are expected to file annual returns using form 20C or 20S depending on them being a "C" or "S" corporation.