Alabama LLC Operating Agreement Template [PDF]

• Single-member LLC operating agreement: This type of agreement is created for LLCs with only one owner or member. It is usually less complex since it contains only details about the operation of the LLC without providing regulations regarding the relationships between multiple members.

• Multi-member LLC operating agreement: This type of agreement provides more terms and conditions that regulate the mutual relationship between the multiple members of the LLC.

• Member-managed LLC operating agreement: Here, the operating agreement defines the rights and duties of each member in terms of their managerial status in the entity. In this way, members will precisely define the decision-making process within the LLC.

• Manager-managed LLC operating agreement: With this type of LLC, the members choose to appoint one or more managers to make day-to-day decisions within the company. The operating agreement defines the scope of each manager’s authority.

#1. Reserve a Name For Your LLC

Find a unique name for your LLC that is not already in use by another entity in Alabama by checking the Secretary of State's Business Entity Records. After finding a unique name, you can apply for the name reservation. The application can be done in person or online. 

#2. Choose the Type of LLC

The Alabama law differentiates between domestic and foreign LLCs. The domestic LLC is formed and operates in one state, while the foreign LLC operates in a state other than the state in which it was formed.

#3. Nominate an Agent

Here, you should nominate a person or a company that will accept the legal documents on your behalf. That can be you, your lawyer, friend, spouse, or any other person that you trust and who has a registered address in Alabama. However, the registered address cannot be the PO box or mailbox.

#4. Pay the Required Fee

When submitting the certificate of formation for the LLC, you should also pay the appropriate filing fee. When filing via postal service, you should pay the $200 fee (check, money order). 

When filing the certificate of formation online, you should pay the filing fee of $156 for the foreign filing and $208 for the domestic filing.

#5. File the Certificate of Formation

If you choose to file the certificate of formation via postal service, you should send the proof of paid filing fee, a name reservation certificate, two copies of the certificate of formation, and a self-addressed and stamped return envelope.

However, if you choose to file the certificate of formation online, you should go to the Secretary of State Online Services and follow the instructions on the website.

#6. Create your LLC Operating Agreement

Here, you can go to the operation agreement builder, enter the relevant details, and download the ready-to-sign LLC operating agreement document.

#7. Apply For an Employer Identification Number (EIN)

Even if you don’t have any employees, you must register your EIN. You can obtain this number by completing the online application.