Alabama LLC Operating Agreement Template [PDF]

Follow our guide on how to regulate the operation of your LLC by drafting a professional and customizable Alabama operating agreement.

Last update: 13 Feb 2024

Alabama LLC Operating Agreement Template [PDF]

An Alabama limited liability company (LLC) operating agreement is a legal document that provides the general rules for the operation of the LLC. It lists all the members of the LLC and provides information on their contributions and ownership interest percentages.

The LLC operating agreement, or business operating agreement, is important for the members who want to regulate their relationship in more detail since the federal and state regulations provide only the general legal framework on how the LLC should be operated.

Is an Operating Agreement Required in Alabama?

No, the operating agreement is not required in Alabama. However, even if not required by law, LLC members often choose to make an operating agreement to provide precise guidelines on how the company will be operated.

4 Main Types of Operating Agreements

Here, you can see the most commonly used types of operating agreements:

Types of Operating Agreements

  • 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.

Laws and Legal Requirements for LLC Operating Agreements in Alabama

Title 10A, Chapter 5A of the Code of Alabama, outlines the general rules about LLCs in Alabama. 

Additionally, the following provisions govern the limited liability company agreement:

How to Form a Limited Liability Company (LLC) in Alabama

How to Form a LLC in Alabama

#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.

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