Purposes of Domestic Entity.

Ala. Code tit. 10A, ch. 1, art. 2, div. A

in effect

Ala. Code § 10A-1-2.01 General Scope of Permissible Purposes.

10A-1-2.01. General Scope of Permissible Purposes. A domestic entity may have any lawful purpose or purposes, unless otherwise provided by this title. If the purpose for which it is organized or its form makes it subject to a special provision of law or limitation of purpose, the entity shall also comply with that provision or conform to that limitation. (Acts 1994, No. 94-245, p. 343, §1; §10-2B-3.01; amended and renumbered by Act 2009-513, p. 967, §7.)

Ala. Code § 10A-1-2.02 Prohibited Purposes.

10A-1-2.02. Prohibited Purposes. A domestic entity may not engage in a business, activity, not for profit activity, or any other activity, whether or not for profit, that: (A) is expressly unlawful or prohibited by a law of this state; (B) cannot lawfully be engaged in by that entity under a law of this state; or (C) may not be engaged in by an entity without first obtaining a license under the laws of this state to engage in that business, activity, not for profit activity, or any other activity, whether or not for profit, and a license cannot lawfully be granted to the entity. (Act 2009-513, p. 967, §8; Act 2018-125, §1.)

Ala. Code § 10A-1-2.03 Limitation on Purposes of Professional Entity.

10A-1-2.03. Limitation on Purposes of Professional Entity. Except as provided in the chapter of this title applicable to the entity, a professional entity may engage in only: (1) one type of professional service, unless the entity is expressly authorized to provide more than one type of professional service under state law regulating the professional services; and (2) services ancillary to that type of professional service. (Act 2009-513, p. 967, §8.)

Ala. Code § 10A-1-2.04 Limitation in Governing Documents.

10A-1-2.04. Limitation in Governing Documents. The governing documents of a domestic entity may contain limitations on the entity’s purposes. (Act 2009-513, p. 967, §8.)

Source: Alabama Legislature (alison.legislature.state.al.us)URL: https://alison.legislature.state.al.us/code-of-alabamaFetched: 10/20/2026