Incorporation in Alabama

Prichard Incorporation Attorneys, AL

Find the Right Lawyer Now

Alabama law allows a business to incorporate and be recognized 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 office of the Secretary of State is the agency that receives applications for incorporation in Alabama, and they must be completed in conformity with specific guidelines.

Benefits of Incorporation in Alabama

An incorporated business enjoys certain benefits, the most important being a limit of liability for the shareholders. The most shareholders can lose is the amount they invest in the business. With unincorporated businesses, personal property of owners can be liquidated in order to satisfy the liabilities of the business. A corporation may also find it easier to finance itself through loans, allowing creditors in the Prichard area to evaluate their investment by assessing the corporation rather than the individual credit-worthiness of its owners. Lastly, a corporation's ownership stake is divided into equal slices or "shares" of stock, which make investments in the business much easier to transfer.

Find a Prichard Lawyer that Specializes in Your Area of Need:

Incorporation Attorneys and Law Firms in the Largest AL Cities

Show Alabama Cities

Costs of Incorporation

Along with a possible fee to file for incorporation in Alabama, there are other costs that corporations incur. The most important is that a corporation is taxed as its own entity. In other words, the profits a corporation makes are now taxed separately, while any disbursements to shareholders are taxed as individual income. This is called double taxation. However, a business may avoid this disadvantage with proper planning and assistance from a local Prichard 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.

Business - Transactional Lawyer
LegalMatch Business - Transactional Lawyer Kevin H.

Kevin H.

Mobile, AL

Business - Transactional

Rating (4 users) ****
See Reviews
Business - Transactional Lawyer
LegalMatch Business - Transactional Lawyer Jesse H.

Jesse H.

Mobile, AL

Business - Transactional

Rating (9 users) *****
See Reviews
Business - Transactional Lawyer
LegalMatch Business - Transactional Lawyer Scott J.

Scott J.

Shelby, AL

Business - Transactional

Rating (4 users) *****
See Reviews
Business - Transactional Lawyer
LegalMatch Business - Transactional Lawyer Ayn T.

Ayn T.

Shelby, AL

Business - Transactional

Rating (2 users) *****
See Reviews

Need a Business Lawyer?

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