In the third quarter of 2017, Alabama grew at an annual rate of 2.7%, which was slower than the overall US growth rate of 3.4%. Alabama’s 2016 growth rate of 1.5% was unchanged from the 2015 rate of 1.5%. (Source: BEA) • In January 2018, the unemployment rate was 3.7%, down from 5.5% in January 2017. This was below the January 2018 national unemployment rate of 4.1%. (Source: CPS) . Small businesses created 15,718 net jobs in 2015. Firms employing fewer than 20 employees experienced the largest gains, adding 8,284 net jobs. The smallest gains were in firms employing 20 to 99 employees, which added 1,350 net jobs.
Economy:
The state has invested in aerospace, education, health care, banking, and various heavy industries, including automobile manufacturing, mineral extraction, steel production and fabrication. By 2006, crop and animal production in Alabama was valued at $1.5 billion. In contrast to the primarily agricultural economy of the previous century, this was only about 1% of the state’s gross domestic product. The number of private farms has declined at a steady rate since the 1960s, as land has been sold to developers, timber companies, and large farming conglomerates
Alabama has 323,891 small businesses, according to the most current federal data available.
Of those 323,891 small businesses in Alabama, 84,277 have employees. The remaining 239,614 are Alabama small businesses that have no employees.
A great deal of Alabama’s economic growth since the 1990s has been due to the state’s expanding automotive manufacturing industry. Located in the state are Honda Manufacturing of Alabama, Hyundai Motor Manufacturing Alabama, Mercedes-Benz U.S. International, and Toyota Motor Manufacturing Alabama, as well as their various suppliers. Since 1993, the automobile industry has generated more than 67,800 new jobs in the state. Alabama currently ranks 4th in the nation for vehicle exports.
Steel producers Outokumpu, Nucor, SSAB, ThyssenKrupp, and U.S. Steel have facilities in Alabama and employ over 10,000 people.
The Hunt Refining Company, a subsidiary of Hunt Consolidated, Inc., is based in Tuscaloosa and operates a refinery there. The company also operates terminals in Mobile, Melvin, and Moundville. JVC America, Inc. operates an optical disc replication and packaging plant in Tuscaloosa.
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The most common business structures are sole proprietorship, partnership, limited liability company (LLC), and a few different types of corporations—the standard corporation (often called a C corporation or “C corp”), the small business corporation (often called an S corporation or “S corp”), and the benefit corporation (often called a B corporation or “B corp”).
The most common business structures are:
Choosing a business name is important, you want to make it easier for your customers to remember it, here are some tips:
Depending on the business structure you chose you will need to register your business.
With limited exceptions, most businesses require an Employer Identification Number (EIN), also known as a Tax ID Number. An EIN is used to identify a business in its federal tax filings. Without an EIN, you can’t hire employees or open a business bank account.
– Open a business bank account:
– Get a business credit card:
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
Here are some links for Alabama Businesses:
Business Tax online registration system
Your brand is the image customers have of your business, so it’s important to determine who is your audience and what is the message that you want to project. That way, your company’s image will be what you intend it to be. It should be strategic and intentional.
Creating an optimized website helps you to gain important visibility for the right terms. A website is a powerful sales tool and one that allows you to address your customers’ concerns, give them the information they need to make a decision and create compelling calls to action.
In addition to a website, you should also consider other avenues for promoting your business online:
Business Tax online registration system
Small Business Resources in Alabama
Business Development Division Small Business