Alabama LLC Filing Fees and Requirements
Forming an LLC in Alabama costs $200 for the Certificate of Formation plus a $28 name reservation fee. See all Alabama LLC fees, annual requirements, and filing steps.
Bizee Editorial Staff
Editorial Team
Alabama LLC key facts
Filing fee: $200 (Certificate of Formation) + $28 name reservation fee
Processing time: Online: ~24 hours. Mail: several weeks.
State agency: Alabama Secretary of State
Annual report due: No separate annual report. Business Privilege Tax return filed annually with the Alabama Department of Revenue.
State tax rate: Business Privilege Tax: minimum ~$50/year; amount varies based on federal taxable income.
Alabama LLC filing fees and requirements overview
Forming an LLC in Alabama requires filing a Certificate of Formation with the Alabama Secretary of State and paying a $200 state filing fee, plus a $28 name reservation fee. Online filings are processed in about 24 hours. After formation, Alabama LLCs pay an annual Business Privilege Tax — not a separate annual report — to stay in good standing.
Initial formation fees
The core cost to form an Alabama LLC is $200 for the Certificate of Formation filed with the Alabama Secretary of State. Alabama also requires you to reserve your business name before filing, which adds a $28 online fee. That puts the typical total at about $228 online or $225 by mail — the difference comes from the online convenience fee.
Alabama is one of the few states that makes name reservation a required step before formation, not an optional one. That's worth knowing before you start the process so you're not caught off guard by the extra fee or the extra step.
- Certificate of Formation state filing fee: $200
- Name reservation fee (online): $28
- Typical total online: ~$228 (includes online convenience fee)
- Typical total by mail: ~$225
- Online processing time: ~24 hours
- Mail processing time: several weeks
Name reservation
Alabama requires you to reserve your LLC name before filing the Certificate of Formation. The online name reservation fee is $28, and you can submit the request through the Alabama Secretary of State's online portal. You can also file by mail using the state's paper form if you prefer.
The name must be available in the Secretary of State's business entity records before your formation filing will be accepted. Check availability before you pay the reservation fee.
Employer Identification Number
Every LLC needs an Employer Identification Number (EIN) — a unique tax ID issued by the IRS. You'll use it to file taxes, open a business bank account, and pay employees. Applying directly through the IRS at irs.gov/ein is free and takes about 15 minutes online.
An EIN also keeps your Social Security number off business documents, which is a practical reason to get one even if you have no employees.
Annual maintenance fees
Alabama doesn't use a traditional annual report filed with the Secretary of State. Instead, Alabama LLCs pay an annual Business Privilege Tax to the Alabama Department of Revenue to stay in good standing. The minimum tax is about $50 per year, though the amount can be higher depending on your LLC's federal taxable income.
The Business Privilege Tax return is filed annually with the Alabama Department of Revenue. Entity information updates happen through this tax return process — there's no separate Secretary of State filing required each year. Missing the filing deadline can mean a late penalty of 10% of the tax due or $50, whichever is greater.
Foreign LLC registration
If your LLC is formed in another state but you want to do business in Alabama, you need to file a Foreign LLC Application for Registration with the Alabama Secretary of State. The state filing fee is $150, and you'll also need to reserve a name in Alabama first — typically another $25 — bringing the combined cost to about $175 before any online convenience fees.
Foreign LLCs must also appoint a registered agent with a physical street address in Alabama as part of the registration. A registered agent is a person or business that receives official legal and state correspondence on your LLC's behalf.
Business licenses and permits
Forming an LLC is separate from getting the licenses and permits your business needs to operate. Alabama requires most businesses to hold a Business Privilege License issued at the county level, and some cities add their own local license requirements on top of that.
The specific licenses you need depend on your industry, your location, and whether your business is regulated at the federal level. A contractor, a food service business, and a professional services firm will each have different requirements. Check with your county probate office and the Alabama Department of Revenue for the licenses that apply to your situation.
Amendments and other fees
If you need to change your LLC's name, registered agent, or other formation details after filing, you'll file a Domestic LLC Amendment to Formation/Organization form with the Alabama Secretary of State. The form requires the LLC name, formation date, the exact text of each article being changed, and the registered agent's name and address.
After a name change is approved, you'll also need to update your business privilege licenses at the county or city level, and notify the IRS and the Alabama Department of Revenue so your tax records stay consistent.
Operating agreement
Alabama does not require an LLC to have an operating agreement, but having one is worth doing anyway. An operating agreement sets out how your LLC is owned, how decisions get made, and how profits and losses are divided among members. Without one, Alabama's default LLC rules govern those questions — and the defaults may not match what you actually want.
FAQ
The base cost is $228 online — a $200 Certificate of Formation fee plus a $28 name reservation fee. Filing by mail runs about $225 because there's no online convenience fee. These are state fees only and don't include registered agent fees, an EIN, or any business licenses your specific business may need.
Yes. Alabama LLCs pay an annual Business Privilege Tax to the Alabama Department of Revenue each year to stay in good standing. The minimum is about $50, though the amount can be higher based on your LLC's federal taxable income. Alabama doesn't have a separate annual report filed with the Secretary of State — the Business Privilege Tax return handles entity updates.
It depends on your county, your city, and your industry. Alabama requires most businesses to hold a Business Privilege License issued at the county level, and fees vary by location and business type. Some cities add their own local license requirements. Check with your county probate office and the Alabama Department of Revenue for the fees that apply to your business.
We collect the state fee from you at cost and pay it directly to the Alabama Secretary of State when we file your formation paperwork. You're not paying a markup on the state fee — it passes through to the state exactly as charged.
Online filings are generally processed in about 24 hours. Mail filings take several weeks. If your timeline matters, filing online is the faster path. Alabama also requires a name reservation before the Certificate of Formation can be filed, so factor that step into your timeline.
Alabama imposes a late-filing penalty of 10% of the tax due or $50, whichever is greater — and that $50 minimum applies even if your LLC owes zero tax for the period. A separate late-payment penalty of 1% per month on unpaid tax can also apply, up to a 25% maximum. You can request a penalty waiver from the Alabama Department of Revenue if you have reasonable cause.
The combined state fees for a foreign LLC registration in Alabama are about $175 — a $150 Application for Registration fee plus approximately $25 for the required name reservation. Online filings add a small convenience fee on top of that. You'll also need to appoint a registered agent with a physical Alabama address as part of the registration.
