Incorporation in Alabama

Gulf Shores Incorporation Attorneys, AL

Find the Right Lawyer Now

Alabama law allows a business to incorporate and be identified as its own legal entity. As a separate entity from the owners, the business is then considered to be acting on its own when it buys and sells property, assents to contracts and exercises legal rights. The Alabama Secretary of State receives and processes applications for incorporation, which must be submitted in compliance with local guidelines.

Benefits of Incorporation in Alabama

Benefits of incorporation are many. The primary benefit is that the liabilities of the business can only be satisfied by the assets specifically invested into the company by the owners. If the business had remained a personal asset of the owners, they could run the risk of losing their personal property to pay for the company's financial liabilities in case of default. Furthermore, a business that has not incorporated puts the unnecessary burden on creditors in the Gulf Shores area to evaluate the credit worthiness of individual owners rather than that of the business, making loans more difficult. Lastly, the ownership of a corporation is divided into an abundance of equal portions or "shares" of stock. Without this mechanism, transferring ownership of a business would be impractical.

Find a Gulf Shores Lawyer that Specializes in Your Area of Need:

2 Business - Transactional cases posted to LegalMatch lawyers in Gulf Shores

Incorporation Attorneys and Law Firms in the Largest AL Cities

Show Alabama Cities

Costs of Incorporation

There are costs associated with incorporation, both short and long term. First, businesses in Alabama might be charged a fee to incorporate. Also, a corporation is taxed as its own entity. The individual incomes of owners who are paid disbursements from the corporation's earnings are still taxed as well. This is called double taxation, but it may be avoided with proper planning and assistance from a local Gulf Shores lawyer.

Find the Right Lawyer Now

Breach of Contract Lawyers in Other Alabama Cities and Towns

Top Rated Lawyers

View attorney profiles and see how other LegalMatch users rate attorneys that may respond to your case.

Family Law Lawyer
LegalMatch Family Law Lawyer John (J.D.) H.

John (J.D.) H.

BALDWIN, AL

Family Law

Rating (1 users) **
See Reviews
General Practice Lawyer
LegalMatch General Practice Lawyer Jesse H.

Jesse H.

BALDWIN, AL

General Practice

Rating (4 users) *****
See Reviews
Family Law Lawyer
LegalMatch Family Law Lawyer Ayn T.

Ayn T.

SHELBY, AL

Family Law

Rating (1 users) *****
See Reviews
General Practice Lawyer
LegalMatch General Practice Lawyer Paul S.

Paul S.

DEKALB, AL

General Practice

Rating (1 users) *****
See Reviews

Need a Business Lawyer?

No obligation - Lawyers compete for your case. Choose your issue & get started now: