2020 required businesses to reinvent themselves time and again. Even in the most trying of times, business owners never stop innovating. In trying circumstances, we found ways of doing business that work so much better than the old ways that we might stick to them even when the spread of COVID-19 is under control to the extent that in-person businesses can operate at full capacity. The public and private sectors discovered that providing some services remotely is time-efficient and economical and helps conserve natural resources. This may have been the impetus behind a new law that went into effect in Alabama on January 1, 2021. Whatever the motivation, it will make it easier for new businesses to incorporate in Alabama this year and in future years. This is good news if your business closed as a result of the pandemic and you have a new business idea that will enable your entrepreneurial dreams to rise from the ashes. If you are planning on opening a new business in 2021, contact an Alabama business entity law attorney.
Act 2020-73 and How it Will Make Filing Business Documents Easier
Before the pandemic, establishing a business, modifying its structure, or dissolving it required you to deal with an outdated system. There were too many offices to work with, and they each required their own separate fees. The process was time-consuming and expensive. Act 2020-73, which went into effect at the beginning of 2021, streamlines the process by which businesses file incorporation documents and other important papers.
Here are some key provisions of the new law:
- You can now file documents related to the formation, amendment, or dissolution of a business entity electronically.
- Under the old system, you used to have to file business documents with the probate office in your county and then with the state. The new law requires you to file them only once, with the state. The state will automatically notify your county that you have filed the documents.
- Under the old system, you had to pay state and county fees separately, and the local fees used to vary from one county to another. Now you just pay one fee of $200, and the state will send $100 of this fee to your county.
Alabama Secretary of State John Merrill said that the purpose of the new law is to remove some of the red tape that makes it difficult to establish and modify businesses in Alabama. The new law certainly makes it simpler to file business documents, but operating a business in a legally compliant way and protecting its rights as a legal entity still requires expertise. Before you file the documents to incorporate your business, you should consult a business law attorney.
Let Us Help You Today
A Birmingham business & corporate litigation attorney can help you choose the best business structure for your new company and make other important decisions related to establishing a new business. Contact Cloud Willis & Ellis for help with your case.