A certificate of good standing in Alabama validates that a limited liability company (LLC) or corporation was founded lawfully and has been properly maintained.
In our Certificate of Good Standing Alabama guide, we will go over the qualifications for good standing as well as how to get one in Alabama.
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How Do I Obtain an Alabama Certificate of Good Standing?
Request your certificate of good standing, also known as a certificate of compliance in Alabama, from the Alabama Department of Revenue.
There are two major processes involved in obtaining your certificate of good standing:
1. Maintain your LLC’s compliance
2. Request a certificate of good standing.
Step 1: Ensure that your Alabama business is in compliance.
To qualify for an Alabama certificate of compliance, your company must adhere to the following state compliance requirements:
Permits and Licenses
To run a company in Alabama, you must adhere to federal, state, and municipal licensing requirements. Regulations such as health permits and construction permits are examples of this.
The Alabama Department of Revenue website has further information on state licensing requirements.
State levies
Depending on your company activity, you may be required to register for several types of Alabama state tax. Sales tax, withholding tax, and Unemployment Insurance (UI) tax are all examples of this.
Alabama also has a franchise tax known as a Business Privilege Tax, which is dependent on the previous year’s revenue.
Reports on a Year
Every Alabama LLC and company is required to submit an annual report. This report outlines your company’s financial performance over the previous year.
As part of the Business Privilege Tax filing, annual reports are sent to the Department of Revenue. The deadline for submitting is April 15. The amount of Business Privilege Tax owed by a corporation is determined by its revenue, however the minimum amount is $100.
Step 2: Request an Alabama Certificate of Good Standing.
You may get an Alabama certificate of compliance from the Department of Revenue after your company has remained in compliance with the state. This is something that can be done online.
Is a Certificate of Good Standing Required in Alabama?
While you don’t always need a certificate of compliance to manage a company in Alabama, there are a few situations when you could. These are some examples:
Purchasing commercial insurance
Applying for commercial loans
Establishing a business checking account
Getting a business license in another state
