Legal Tip of the Week: LLCs Are No Longer “Individuals” for Venue Purposes in Alabama

The Alabama Supreme Court has issued an important decision that significantly clarifies where lawsuits against limited liability companies (“LLCs”) may be filed in Alabama courts.

In Ex parte Rivers, SC-2025-0301 (Ala. Sept. 26, 2025), the Court resolved a long-standing and often-litigated issue: whether venue for LLCs should be determined under Alabama’s individual venue statute or its corporate venue statute. The answer now is clear — LLCs are governed by Alabama’s corporate venue statute, Ala. Code § 6-3-7.

Why this clarification matters

For years, Alabama courts were inconsistent on this issue. Some treated LLCs like individuals for venue purposes, applying Ala. Code § 6-3-2 and focusing on the residence of the LLC’s members. Others treated LLCs more like corporations. That inconsistency created uncertainty, encouraged venue disputes, and sometimes allowed venue to be driven by where an owner lived — even when that location had little to do with the underlying dispute.

The Supreme Court’s decision puts an end to that confusion.

What changes after Ex parte Rivers

Under the Court’s ruling, LLCs are no longer treated like individual defendants for venue purposes. Instead, venue is determined based on the LLC’s business presence and activities, not the personal residences of its members.

Practically speaking, this means:

• Venue will generally be proper where the LLC maintains its principal office,

• Where the LLC does business, or

• Where a substantial part of the events or omissions giving rise to the claim occurred.

This aligns LLCs with corporations under Alabama law and creates a more predictable, business-focused venue analysis.

Why businesses and litigants should care

This decision has real-world consequences for both plaintiffs and defendants:

• LLCs gain greater predictability about where they can be sued.

• Venue disputes should become less frequent, saving time and litigation costs.

• Forum-shopping based on member residency is curtailed, ensuring cases are heard in counties with a real connection to the dispute.

• Attorneys must now evaluate venue issues involving LLCs through the lens of § 6-3-7, not § 6-3-2.

For businesses operating across multiple counties — or with members spread throughout the state — this clarification is especially significant.

The takeaway

The Alabama Supreme Court has made it clear: LLCs are entities, not individuals, for venue purposes. By applying the corporate venue statute to LLCs, the Court has brought clarity, consistency, and fairness to an area of law that had been unsettled for years.

If you own an LLC, are considering litigation involving an LLC, or have questions about whether venue is proper in your case, this decision could materially affect your rights and strategy.

Hoffman Law Offices regularly advises clients on venue, jurisdiction, and litigation strategy throughout Alabama. If you have questions about how this ruling applies to your situation, we’re here to help.

Disclaimer: This blog post is provided for informational purposes only and does not constitute legal advice. Reading this post or contacting Hoffman Law Offices does not create an attorney–client relationship. Legal issues are fact-specific, and you should consult an attorney regarding your particular circumstances.