![]() Limited liability company.Īn Alabama limited liability company (LLC) is a formal business structure that combines features of a partnership and corporation. Both business structures must be registered with the state. A limited liability partnership, on the other hand, protects each partner from losses, debts, and obligations incurred by the other partner. In Alabama, both enjoy pass-through taxation.Ī general partnership does not afford the partners protection from liability. There are two main types of Alabama partnerships: general partnerships and limited liability partnerships. Partnership.Ī business formed as a partnership is an association of or contract between two or more individuals to operate a business as co-owners. Aside from being uncomplicated and inexpensive to form, another advantage of the sole proprietorship is that the owner has complete control of the business and has sole ownership of profits. This means that the owner is fully liable for any debts and losses incurred by the business. ![]() The one major disadvantage of forming a sole proprietorship is that no distinction is made between the owner and the business. ![]() All businesses, including sole proprietorships, must obtain a privilege license that must be renewed annually and register with the Alabama Department of Revenue. ![]() It is the easiest and cheapest way to form a business and does not have to be registered with the state. Sole proprietorship.Ī sole proprietorship is a very simple, unincorporated business structure. ![]()
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