Alabama Business Startup Guides

Opening a Business in Montgomery, Alabama

Contemplating starting a business in Montgomery, Alabama? We walk you through the process of opening a business in Montgomery.

Is Becoming a Business Owner Right for You?

An entrepreneurial life is difficult, much harder than working as an employee. Are you positive you want to go into business for yourself?

Here are three things we recommend you do before you fully commit to starting a new business of your own.

  • Speak with other entrepreneurs in Montgomery. Get their take on what it's really like to be an entrepreneur.
  • You should read Business Failure. It's a good read for those who are thinking about becoming an entrepreneur.
  • Involve a spouse, family member or trusted friend in the decision. That's the best way to get a truly objective assessment as to whether others think you have what it takes.

Montgomery, Alabama Demographic Information

Montgomery has an active business community that includes small businesses, mid-sized businesses and large businesses.

To give you a better feel for Montgomery demographics for small businesses, we have tabulated the small business sizes, based on number of employees, for business in Montgomery.

Business Size
# of
Businesses
1-4 Employees
96492
5-9 Employees
41652
10-19 Employees
34080
20-49 Employees
24012
50-99 Employees
8064
100-249 Employees
5400
250-499 Employees
1008
500-999 Employees
396
1000+ Employees
180
All Montgomery Businesses
211284

As a new Montgomery entrepreneur, you may also be interested in the table below. It shows how many businesses there are in Montgomery for each business category. By looking at this chart, you can get a general sense for how much competition there is in the business niche that you are pursuing.

Business Type
# of
Businesses
Aluminum Extruded Product Manufacturing
1
Ambulance Services
4
Amusement and Theme Parks
1
Amusement Arcades
2
Animal (except Poultry) Slaughtering
1
Appliance Repair and Maintenance
3
Apprenticeship Training
2
Armored Car Services
2
Art Dealers
1
Automobile Driving Schools
1
Automobile Manufacturing
1
Automotive Exhaust System Repair
6
Automotive Glass Replacement Shops
8
Automotive Parts and Accessories Stores
48
Baked Goods Stores
3
Barber Shops
4
Beauty Salons
65
Beer and Ale Merchant Wholesalers
2
Beer, Wine, and Liquor Stores
19
Blind and Shade Manufacturing
1
Blood and Organ Banks
4
Book Publishers
4
Book Stores
13
Bottled Water Manufacturing
1
Bowling Centers
2
Broadwoven Fabric Mills
1
Building Inspection Services
1
Business and Secretarial Schools
1
Business to Business Electronic Markets
2
Cable and Other Program Distribution
2
Cafeterias
12
Camera and Photographic Supplies Stores
1
Canvas and Related Product Mills
1
Car Washes
9
Carpet and Upholstery Cleaning Services
10
Cemeteries and Crematories
3
Charter Bus Industry
1
Child and Youth Services
15
Child Day Care Services
72
Children's and Infants' Clothing Stores
7
Civic and Social Organizations
30
Claims Adjusting
6
Coin-Operated Laundries and Drycleaners
3
Collection Agencies
5
Commercial Bakeries
2
Commercial Lithographic Printing
13
Commercial Photography
1
Commercial Screen Printing
3
Commodity Contracts Dealing
1
Computer and Software Stores
10
Computer Facilities Management Services
5
Computer Systems Design Services
38
Computer Training
1
Concrete Pipe Manufacturing
1
Confectionery Merchant Wholesalers
1
Construction Machinery Manufacturing
2
Consumer Lending
20
Continuing Care Retirement Communities
6
Convenience Stores
9
Convention and Visitors Bureaus
1
Couriers
8
Court Reporting and Stenotype Services
5
Credit Unions
20
Custom Computer Programming Services
23
Dance Companies
2
Dental Laboratories
8
Diagnostic Imaging Centers
15
Diet and Weight Reducing Centers
1
Digital Printing
1
Direct Life Insurance Carriers
17
Direct Title Insurance Carriers
2
Directory and Mailing List Publishers
4
Discount Department Stores
1
Display Advertising
6
Document Preparation Services
2
Drafting Services
3
Drinking Places (Alcoholic Beverages)
17
Educational Support Services
2
Electric Power Distribution
10
Electrical Contractors
48
Electronic Auctions
1
Electronic Shopping
1
Elementary and Secondary Schools
19
Emergency and Other Relief Services
1
Engineering Services
50
Environmental Consulting Services
1
Exam Preparation and Tutoring
4
Exterminating and Pest Control Services
14
Facilities Support Services
1
Family Clothing Stores
27
Family Planning Centers
4
Fine Arts Schools
5
Finish Carpentry Contractors
9
Fish and Seafood Markets
1
Fitness and Recreational Sports Centers
14
Floor Covering Stores
11
Flooring Contractors
5
Florists
13
Food (Health) Supplement Stores
8
Food Service Contractors
13
Formal Wear and Costume Rental
3
Framing Contractors
9
Freight Transportation Arrangement
3
Frozen Specialty Food Manufacturing
1
Fruit and Vegetable Canning
1
Funeral Homes and Funeral Services
9
Furniture Merchant Wholesalers
3
Furniture Stores
25
General Automotive Repair
49
General Freight Trucking, Local
6
General Medical and Surgical Hospitals
5
General Rental Centers
4
Gift, Novelty, and Souvenir Stores
19
Glass and Glazing Contractors
4
Golf Courses and Country Clubs
7
Grantmaking Foundations
14
Graphic Design Services
3
Hand and Edge Tool Manufacturing
1
Hardware Manufacturing
1
Hardware Stores
11
Hazardous Waste Treatment and Disposal
3
Historical Sites
2
Hobby, Toy, and Game Stores
10
Home Centers
2
Home Furnishing Merchant Wholesalers
2
Home Health Care Services
21
Homes for the Elderly
10
Household Appliance Stores
4
Human Rights Organizations
10
Industrial Building Construction
4
Industrial Launderers
3
Insurance Agencies and Brokerages
100
Interior Design Services
6
Investigation Services
5
Investment Advice
7
Iron Foundries
1
Janitorial Services
52
Jewelry Stores
28
Junior Colleges
2
Kidney Dialysis Centers
8
Landscape Architectural Services
4
Landscaping Services
50
Lessors of Other Real Estate Property
8
Libraries and Archives
1
Limited-Service Restaurants
173
Limousine Service
1
Linen Supply
1
Local Messengers and Local Delivery
2
Locksmiths
6
Machine Shops
7
Mail-Order Houses
3
Manufactured (Mobile) Home Dealers
3
Marketing Consulting Services
8
Masonry Contractors
11
Mattress Manufacturing
2
Meat Markets
6
Media Buying Agencies
2
Media Representatives
3
Medical Laboratories
7
Men's Clothing Stores
17
Metal Stamping
1
Miscellaneous Intermediation
9
Mobile Food Services
1
Mortgage and Nonmortgage Loan Brokers
5
Motion Picture and Video Production
4
Motor and Generator Manufacturing
1
Motor Vehicle Body Manufacturing
1
Motor Vehicle Towing
3
Museums
2
Musical Groups and Artists
2
Musical Instrument and Supplies Stores
4
Nail Salons
2
Natural Gas Distribution
2
Natural Gas Liquid Extraction
1
New Car Dealers
18
Newspaper Publishers
3
Nonresidential Property Managers
6
Nursing Care Facilities
13
Office Administrative Services
19
Office Equipment Merchant Wholesalers
11
Office Supplies and Stationery Stores
11
Offices of Bank Holding Companies
2
Offices of Chiropractors
14
Offices of Dentists
89
Offices of Lawyers
211
Offices of Optometrists
8
Offices of Other Holding Companies
5
Offices of Podiatrists
7
Offices of Real Estate Appraisers
12
Outdoor Power Equipment Stores
4
Packaging Machinery Manufacturing
2
Packing and Crating
1
Paging
3
Paint and Coating Manufacturing
1
Paint and Wallpaper Stores
11
Painting and Wall Covering Contractors
18
Payroll Services
3
Periodical Publishers
9
Pet and Pet Supplies Stores
7
Pet Care (except Veterinary) Services
1
Petroleum Bulk Stations and Terminals
7
Pharmacies and Drug Stores
39
Photography Studios, Portrait
12
Plastics Bag Manufacturing
1
Plate Work Manufacturing
1
Political Organizations
9
Polystyrene Foam Product Manufacturing
1
Portfolio Management
5
Poultry Processing
2
Prepress Services
1
Professional Employer Organizations
1
Professional Organizations
33
Public Relations Agencies
17
Quick Printing
12
Racetracks
1
Radio Stations
11
Railroad Rolling Stock Manufacturing
2
Real Estate Credit
20
Recreational Vehicle Dealers
2
Refrigerated Warehousing and Storage
1
Remediation Services
1
Repossession Services
3
Residential Property Managers
25
Residential Remodelers
17
Reupholstery and Furniture Repair
5
Roofing Contractors
17
Sales Financing
8
Savings Institutions
1
Saw Blade and Handsaw Manufacturing
1
Sawmills
3
Scheduled Passenger Air Transportation
2
Secondary Market Financing
1
Securities Brokerage
18
Security Guards and Patrol Services
8
Septic Tank and Related Services
1
Sheet Metal Work Manufacturing
1
Shoe Stores
29
Siding Contractors
4
Site Preparation Contractors
12
Snack and Nonalcoholic Beverage Bars
17
Soft Drink Manufacturing
1
Software Publishers
3
Solid Waste Collection
3
Sound Recording Studios
1
Special Needs Transportation
2
Sports and Recreation Instruction
5
Sports Teams and Clubs
1
Support Activities for Forestry
3
Tax Preparation Services
17
Taxi Service
1
Telecommunications Resellers
3
Telemarketing Bureaus
1
Telephone Apparatus Manufacturing
1
Television Broadcasting
4
Temporary Help Services
24
Temporary Shelters
2
Testing Laboratories
1
Theater Companies and Dinner Theaters
1
Tile and Terrazzo Contractors
5
Tire and Tube Merchant Wholesalers
1
Tire Dealers
26
Title Abstract and Settlement Offices
7
Tobacco Stores
3
Tradebinding and Related Work
1
Travel Agencies
7
Used Car Dealers
29
Used Merchandise Stores
21
Vending Machine Operators
12
Veterinary Services
24
Video Tape and Disc Rental
16
Vocational Rehabilitation Services
10
Voluntary Health Organizations
7
Warehouse Clubs and Supercenters
3
Web Search Portals
1
Wholesale Trade Agents and Brokers
27
Wired Telecommunications Carriers
16
Women's Clothing Stores
50
Wood Container and Pallet Manufacturing
1
Wood Preservation
1
Wood Window and Door Manufacturing
2

Is Buying an Existing Montgomery Business a Good Strategy?

An excellent way to get started in business is to Buy a Business in Alabama. Follow that link and you may find several good businesses for sale in Montgomery.

For anybody who wants to buy a business, we recommend reading this useful article: Hold Harmless Agreements When Buying Businesses.

Naming the Company

Making the right decision when choosing a company name is very important. There are many decisions you'll make now that you can change later, but changing a company name years down the road is not very easy. So, choose a good company name at the outset.

Company names need to be easy to spell, easy to pronounce, and easy to remember.

To get up to speed on what makes for a good company name, we encourage you to read this useful article: Naming a Business.

On a final note, given that you are planning on starting a business in Montgomery, it's critical that you ensure that no other Alabama company is using the business name you want to use.

Forming a Company in Montgomery, Alabama

A critical step is ensuring that your business is formed as a legal entity that is separate from its owners. Doing so will shield you from personal liability for business debts and obligations.

The entity you form can be a traditional C-corporation, a Limited Liability Company (LLC), or an S-corporation.

Incorporation is a very common way to legally create a business entity. Of course, you have to decide which type of corporation to form and where to incorporate. If you are starting a business in Alabama, it doesn't mean you are required to incorporate in Alabama. In fact, you can incorporate in the state of your choosing. However, if you do incorporate in another state, you'll have to register as a foreign corporation in your home state.

There are many nuances to forming a company. To learn the fundamentals of company formation, browse articles on our site, such as How to Incorporate. You may also want to seek the advice of an attorney. Finally, if you are starting a business in Montgomery, Alabama, our information on Incorporating in Alabama may be a useful resource if you decide to incorporate in Alabama.

Don't Forget to Create a Business Plan

Creating a business plan is essential in maximizing the prospects of your new company. In effect, your business plan is your game plan for how you hope to grow your business. Failure to write a business plan

To learn more about business plans, read Business Plan Contests. You should also take advantage of free business counselors available to you through your local SCORE chapter in Alabama.

Moving Forward

As an entrepreneur in Montgomery, you won't be working for the boss anymore. You are the boss.

Owning your own business will be a daunting task, but you can do it.

Our goal here is to promote the vitality and growth of small businesses in Montgomery and throughout the United States . We believe entrepreneurship is an amazing engine for job creation in Montgomery, neighborhood development and overall economic health.

More Entrepreneurial Resources for Starting a Business in Montgomery, Alabama

Here are more links that we believe will help you be successful in starting a business in Montgomery.

More Business Startup Guides for Alabama

Starting a Business in Monroeville
Starting a Business in Moulton

Browse All Business Startup Guides for Alabama
Starting a Business Guides for Other States

 

 

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