Certificate of Good Standing Alabama
An Alabama certificate of good standing verifies that a limited liability company (LLC) or corporation was legally formed and has been properly maintained.
In our Certificate of Good Standing Alabama guide, we will discuss the requirements for good standing and exactly how to get a certificate of good standing in Alabama.
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How Do I Get a Certificate of Good Standing in Alabama?
You can obtain your certificate of good standing, known as a certificate of compliance in Alabama, by requesting it from the Alabama Department of Revenue.
There are two main steps for getting your certificate of good standing:
2. Order your certificate of good standing
What is a certificate of good standing? A certificate of good standing is a state document that verifies your business was legally formed and has been properly maintained.
Step 1. Make Sure Your Alabama Business is Compliant
To qualify for an Alabama certificate of compliance, your business must stay up-to-date with state compliance requirements:
Licenses & Permits
To operate your business in Alabama, you must follow federal, state, and local licensing guidelines. This can include regulations like health permits and building permits.
You can find out more about state licensing requirements with the Alabama Department of Revenue website.
State Taxes
Depending on your business activity, you will have to register for different forms of Alabama state tax. This can include sales tax, withholding tax, or Unemployment Insurance (UI) tax.
Alabama also has a franchise fax, called a Business Privilege Tax, which is based on the business's income from the previous year.
Annual Reports
All Alabama LLCs and corporations must file an annual report. This report summarizes your business's finances over the past year.
Annual reports are filed with the Department of Revenue as part of the Business Privilege Tax filing. The filing deadline is April 15. A company’s Business Privilege Tax amount is based on their income, but the minimum amount is $100.
Step 2. Order Your Alabama Certificate of Good Standing
Once your business remains compliant with the state, you can request an Alabama certificate of compliance from the Department of Revenue. This can be done online.
ORDER AN ALABAMA CERTIFICATE OF COMPLIANCE
Order Online With the Department of Revenue
Order OnlineFiling Cost: $14
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Do I Need a Certificate of Good Standing in Alabama?
While you don’t necessarily need a certificate of compliance to run your business in Alabama, there are several instances where you may need to get one. These include:
- Purchasing business insurance
- Applying for business loans
- Opening a business checking account
- Registering to do business in other states
Alabama Certificate of Good Standing FAQ
A certificate of good standing is a legal document that confirms that your business is compliant with state regulations.
In Alabama, a certificate of good standing is known as a certificate of compliance.
Certificates of good standing are also known as certificates of status or certificates of existence.
You can get an Alabama certificate of compliance by remaining compliant with state regulations and ordering a certificate online.
In Alabama, ordering a certificate of compliance costs $14.
Because many banks and insurance companies will want a business's certificate of good standing in order to do business, we recommend getting one as soon as possible.
An Alabama certificate of compliance does not have a set expiration date. However, requesters — such as banks, creditors, and foreign business states — often have their own guidelines for a certificate's validity.
Obtaining an Alabama certificate of compliance means that the state recognizes your business as both active and compliant.
Alabama businesses often need a certificate of compliance in order to do business outside of Alabama, obtain business loans, open business bank accounts, or purchase business insurance.
Alabama businesses are not legally required to obtain a certificate of compliance. However, your business may choose to get one if you decide to do business outside of Alabama or get a business bank account.
After ordering your Alabama certificate of compliance, the Department of Revenue will email you the certificate if your LLC is found to be compliant.