Legal Steps for Corporate Name Reservations in Alabama
When establishing a business in Alabama, one of the crucial steps is securing your corporate name. This process ensures that your selected name is both unique and compliant with state regulations. The following are the key legal steps for corporate name reservations in Alabama.
1. Understand the Name Reservation Process
In Alabama, before you officially register your business, you can reserve a corporate name for 120 days. This reservation provides you time to prepare your formation documents without the worry of someone else taking your desired name.
2. Check Name Availability
Before reserving a name, you need to ensure that it is available. You can perform a name search through the Alabama Secretary of State’s website. The search will reveal whether the name you want is already in use by another entity. Remember, the name must be distinguishable from existing businesses and should not imply association with government entities unless allowed.
3. Prepare Your Name Reservation Request
To reserve a corporate name, you must fill out a name reservation application form. This form can typically be found on the Alabama Secretary of State's official website. You will need to provide the following information:
- Your proposed name for reservation
- Your contact information
4. Submit the Application
After completing the application, submit it to the Alabama Secretary of State’s office. This can usually be done online or via mail. Be sure to check the current submission procedures, as they may change periodically.
5. Pay the Reservation Fee
An application fee is required to reserve your corporate name. As of the last update, the fee is typically around $25. It's advisable to confirm the exact fee on the Secretary of State’s website, as fees can change.
6. Await Confirmation
Once your application and payment are submitted, you will receive confirmation from the state. Keep this confirmation as proof of your name reservation. It is important to initiate your business formation process before the reservation period expires to secure your name.
7. Consider Future Steps
Once your name is reserved, you can proceed with the formation of your corporation, such as submitting the Articles of Incorporation. It’s crucial to ensure that your corporate name meets all legal requirements and aligns with your business goals.
8. Renewing the Reservation (if necessary)
If you believe you need more than the allotted 120 days, Alabama allows for one renewal of the name reservation for an additional 120 days. This requires submitting a renewal application along with the relevant fee.
Following these steps will help you effectively navigate the legal process of corporate name reservations in Alabama. By ensuring compliance, you set a solid foundation for your new business venture.