Incorporation in Alabama

Huntsville Incorporation Attorneys, AL

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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 functioning 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. A corporation might also find it easier to finance itself through loans, allowing creditors in the Huntsville area to evaluate their investment by assessing the corporation rather than the individual credit-worthiness of its owners. Finally, a corporation's ownership stake is divided into equal slices or "shares" of stock, which make investments in the business much easier to transfer.

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Life in Huntsville


With close to 180,000 residents, Huntsville Alabama is a city that is home to some major attractions. Located in the Northern region of Alabama, Huntsville was named on "America's Dozen Distinctive Destinations for 2010 by the National Trust for Historic Preservation. How did Huntsville get this honor? Because of the great amount of civil war history, NASA rockets, and beautiful geography Huntsville has to offer its residents and visitors alike.

Huntsville is located in the Tennessee River Valley, a location that lends itself to hot summers and mild winters. Because of its location, Huntsville also has tornadoes in the spring and fall.  

The Marshall Flight Center is another major point of interest in Huntsville.  Dedicated by President Eisenhower, the presence of the flight center has given Huntsville its nickname-- "Rocket City" and has been home to some great space developments since the 1950's.

Professional industries also thrive in Huntsville. Huntsville lawyers are a great asset to the city and the overall legal profession. Lawyers specializing in a range of practices are available to serve their clients with any legal need he or she may have. Huntsville is simply a great place to work, live, and play. 

Costs of Incorporation

Along with a possible fee to apply for incorporation in Alabama, there are other costs that corporations incur. The most important is that a corporation is taxed as its own entity. The individual incomes of the owners are still taxed also, and this can mean the same income is taxed twice, known as double taxation. With proper planning and assistance from a local Huntsville lawyer, you can avoid this disadvantage.

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