How to Start an LLC in Alabama

An LLC formed in Alabama starts with a single state submission, layers in a continuing agent obligation, and settles into an annual upkeep routine. Expect $236 for the state filing itself, about a week of waiting, and then a small set of ongoing fees that vary by year. Below is the full process, the actual cost breakdown, and how our service fits in.

Launch Your Alabama LLC — $199

Pay $199 once and we handle everything: prep, review, submission to Alabama Secretary of State. About a week from filing to active.

Launch Your Alabama LLC — $199

The Alabama LLC, Briefly Explained

A limited liability company is a flexible business form that limits owner liability while keeping tax filing relatively simple. Within Alabama, consultants, real estate holders, solo operators, and small partnerships all favor the LLC for its blend of low overhead and real protection.

Alabama LLC Pricing

Item	Cost
Our LLC formation service	$199 one-time
State filing fee (Alabama Secretary of State)	$236 one-time
Registered agent (required for every Alabama LLC)	$99/year
State annual report fee	$50/year (Business Privilege Tax min)

$199 is our filing service. The state fee is collected by Alabama Secretary of State. RA product is a separate $99 per year line.

Important Alabama-specific notes: Business Privilege Tax minimum $50/year (reduced from $100 in 2022). No separate annual report; entity info filed with Business Privilege Tax return due April 15.

Alabama LLC Formation: Each Step

1. Name Your Alabama LLC

Your LLC name in Alabama must include one of the LLC suffixes (Limited Liability Company, LLC, or L.L.C.) and must not duplicate or closely resemble any existing business entity. Before you settle on a name, run it through Alabama Secretary of State's online entity search to confirm nothing similar already exists.

Words implying banking, insurance, or government affiliation are restricted in entity names. Skip them unless you've already cleared the relevant authority.

2. Designate a Registered Agent

Alabama mandates a designated agent for every LLC: an individual or company with a brick-and-mortar address in the state available within standard business hours. Anything you list as agent information is publicly accessible at Alabama Secretary of State. There's no private filing option here.

Use our agent product at $99/year. The agent on the public listing is us, not you.

3. Lodge Your Articles of Organization at Alabama Secretary of State

This is the legal birth of the LLC: send Articles of Organization to Alabama Secretary of State plus the $236 state fee. What the document records: your LLC's name, the principal business address, the agent's details (name and address), the management setup (member-managed or manager-managed), and organizer names.

Most filers go through Alabama Secretary of State's online portal at Alabama Secretary of State's online portal, since paper takes longer.

Standard turnaround is about a week from submission. Expedited tracks is sometimes offered for a surcharge.

4. Write the Operating Agreement

The state doesn't ask for an operating agreement at filing time, but you should write one before the LLC opens for business. It sets ownership percentages, decides how profits flow, defines who can make decisions, and specifies the exit process for members. Default LLC rules in Alabama kick in if you don't write your own. They're rarely a good substitute for an actual agreement.

5. Apply for the LLC's EIN

An EIN (Employer Identification Number) functions as the IRS-issued tax ID for the LLC. It's referenced by banks, payroll services, and the IRS. Apply at IRS.gov; it's a ten-minute online form, with the EIN assigned right after submission.

Steer clear of paying for an EIN through a third party — the IRS provides them free in about ten minutes.

6. Stay on Top of Ongoing Compliance

Formation is the start, not the finish. To keep the LLC compliant with the state with Alabama Secretary of State, you have to:

• Keep a RA connected to an in-state street address throughout the LLC's life
• Lodge Alabama's annual report by the state's yearly cutoff
• Carry out true separation between company funds and personal funds (separate banking and separate ledgers)
• Stay compliant with the federal and state tax filings when they're due

Falling behind on these triggers administrative dissolution by Alabama Secretary of State — and an administratively dissolved LLC offers no liability protection.

Outsource it for $199. We prepare and file the Alabama Articles on your behalf.

File My Alabama LLC — $199

The Alabama Registered Agent Rule

Alabama's RA rule applies to every LLC from day one and persists for the LLC's entire life. Agent obligations:

• Have registered a verifiable Alabama address (PO box only is not allowed)
• Remain available within standard business hours to take in service of process
• Transmit state mail and lawsuits promptly so deadlines aren't missed

Acting as your own appointed agent is legal but exposes your address. It then appears in Alabama Secretary of State's public records, searchable by anyone.

Our $99/year plan covers the agent role in Alabama — our address appears, yours doesn't.

FAQs

How much does it cost to form an LLC in Alabama?

Filing costs $236 at the state level. That puts it on the higher side of typical state fees. The recurring annual report sits at $50/year (Business Privilege Tax min).

How long does it take to form an LLC in Alabama?

About a week is the usual processing window in Alabama.

Does Alabama require an annual report?

Yes, every year. The annual report fee comes to $50/year (Business Privilege Tax min).

Do I need a registered agent for my Alabama LLC?

Yes. The Alabama agent requirement is unconditional — a appointed agent based at an in-state address.

Can I form an LLC in Alabama if I live in another state?

Yes. Out-of-state owners can form Alabama LLCs freely. (what you still need is the Alabama agent piece — our agent product at $99/year is the answer.)

File Your Alabama LLC With Our Help

Filing on your own through Alabama Secretary of State is a fine option at Alabama Secretary of State's online portal. $236 goes to the state at filing, a appointed agent must still be registered.

Use our registered agent service and put our information on the formation document. At $99 a year, puts our Alabama address on the public listing, sends scans the day documents arrive, and emails you before every filing deadline.

Form Your Alabama LLC — $199

Looking for the registered agent on its own? The registered agent option is $99/year.

Questions about Alabama LLC formation or the registered agent piece? See the FAQ or contact us within the normal workday.