While you might think of peanuts and cotton, the state of Alabama boasts a wide array of businesses and nearly five million residents. Major industries include agriculture, aerospace, mining and automobile manufacturing. The economy is comprised mainly of small businesses, and would be an excellent place to open your new franchise!
Alabama by the Numbers
Small businesses represent 97 percent of all employers in the state.
There are 393,768 small businesses in Alabama, and they are crucial to the state’s economy.
Most of Alabama’s small businesses are very small. Nearly 81 percent of all businesses have no employees, and most employers have fewer than 20 employees.
Let’s Talk Taxes
Alabama has a franchise tax, also known as a business privilege tax, which is based on the net worth of your business. If your business is subject to the tax, it is a $100 minimum, and goes up with the amount of taxable income your business generates.
Alabama also charges a corporate income tax that is a flat rate of 6.5 percent of taxable net income, which is capped at a maximum of $15,000.
Where to Settle in the Heart of Dixie
There are four major metropolitan areas in the state of Alabama that might be a good choice for you to open a franchise in:
Birmingham: By far the largest metropolitan area, it boasts more than 1,130,000 residents.
Huntsville: The largest city by land total, Huntsville also has an impressive population of more than 430,000 people.
Mobile: The oldest city in Alabama, it was founded by French colonists.
Montgomery: The state capital, this city has more than 377,000 residents.