By StartBusinessByStatePublisher: Robert SmithResearch process
Make your Alabama business official. Have your LLC paperwork prepared and filed so you can focus on getting your business off the ground.
- Your business name checked before filing.
- Your formation paperwork prepared and submitted.
- Your formation documents together in an online account.
$0 service fee + $225 minimum state charges
Filing service by ZenBusiness. Choose Starter for the $0 service fee. State follow-up charges and optional services and renewals are separate.
We may earn a commission if you buy through our links, at no additional cost to you.
Get the paperwork handled and your company underway
With ZenBusiness, you provide the details and its team handles the Alabama formation filing. You get electronic documents and customer support by phone, chat and email.
Use your approved LLC records to open a company bank account, organize your ownership agreement and do business under the company name. The state-specific costs and next steps below help you plan what comes after approval.
What it costs to start a Alabama LLC
An Alabama LLC costs at least $225 to form: a required Certificate of Name Reservation ($25 by mail / about $28 online) plus a $200 Certificate of Formation. Online through Alabama Interactive the formation step commonly shows about $208 because of a portal convenience charge, so a typical online path is roughly $236.
Start with the Alabama Secretary of State LLCs page and the official fee schedule. These are government charges, separate from anything a formation company bills you.
| Expense | Amount | When it applies |
|---|---|---|
| Certificate of Name Reservation (required) | $25 mail / ~$28 online | Must be obtained before formation |
| Certificate of Formation | $200 mail / ~$208 online | Required to create the LLC; $100 of the $200 remits to the registered-office county |
| Minimum formation total (mail) | $225 | Name reservation + formation without portal add-ons |
| Typical online formation total | ~$236 | Portal convenience fees as displayed on Alabama Interactive (confirm at checkout) |
| SOS annual report | None | No Secretary of State annual report for LLCs |
| Business Privilege Tax (ADOR) | Varies | Form PPT / related filings when calculated tax exceeds $100; not an SOS fee |
| County business privilege license | Varies by county | Separate local licensing; not a single statewide SOS amount |
Budget example: about $225–$236 to form, then plan for Alabama Department of Revenue privilege-tax rules and any county license your location requires. That is not an all-in startup budget: permits, insurance, taxes, professional help, and subscriptions are separate.
Online convenience fees can change on Alabama Interactive. Use the amounts shown at payment time rather than treating a prior screenshot as permanent.
Choose the services you want with your filing
Starter’s base formation service does not renew. Registered-agent service, an EIN service, an operating agreement and faster preparation are optional purchases.
The preselected website-builder trial renews at $15/month after 30 days; you can remove it at checkout. Optional Worry-Free Compliance is free for the first year and renews at $199/year. Registered-agent service is listed separately at $199/year; first-year promotions may differ.
Review the services and renewal terms in your order. Provider details checked October 14, 2026 against ZenBusiness’s formation plans.
How to start your Alabama LLC
Use your company details to get the formation paperwork prepared and submitted. Here is how the filing service works:
- Enter your business details. Choose Alabama, your company name and the information requested for the filing.
- Review your services and order. Select Starter for the $0 base service fee. ZenBusiness prepares and submits the formation document from your answers.
- Save your approved company records. Once the filing office accepts the paperwork, use the documents to finish your banking and business setup.
Your Alabama filing checklist and required next steps
- Reserve the name first. Search existing entities, then file the Certificate of Name Reservation. Alabama requires that reservation before formation. Online non-subscribers typically pay about $28; mail is $25. Keep the reservation certificate for the formation filing.
- Gather addresses and agent details. Have the Alabama registered-office street address (and county), mailing address if different, agent name, and organizer information ready. Do not enter someone else’s signature without permission.
- Decide who manages the company. Agree on member- versus manager-managed roles before you fill titles. Ask your bank what ownership documents it needs for an account.
- File the Certificate of Formation. Use Alabama Interactive or mail the official form with the $200 fee (portal total may show about $208). Attach or include the name reservation as required. Confirm the effective date if you delay it (not later than the 90th day after signing, per the form’s statutory citation).
- Confirm acceptance and download documents. Online filings are typically downloadable for a limited window (portal materials note about 15 days) and are not mailed. Save the filed certificate, payment receipt, and reservation proof.
Check your proposed name in the Alabama business search.
How long does approval take?
Online domestic formation through Alabama Interactive is often same-day or near-immediate; mail is slower. There is no separate SOS expedite fee schedule highlighted on the fee PDF researched for this guide. A service’s preparation time is separate from Alabama’s acceptance. ZenBusiness lists standard preparation at 7–10 business days before state processing; state review follows the service’s preparation.
If a lease, financing, or opening date depends on the LLC, leave room for name conflicts and corrections. Completing an online questionnaire is not the moment the company is approved.
Can I file directly with Alabama?
Yes. You can prepare and submit the filing yourself through the Alabama official LLC filing service. A formation service handles preparation and submission from the information you provide. The government charges and required follow-up steps above still apply.
Choose your Alabama registered agent
A member may serve if they meet Alabama’s rules, but the LLC must continuously maintain a registered agent and registered office in the state. The agent may be an individual Alabama resident or a domestic/foreign entity registered in Alabama. The registered office needs an Alabama street address where process can be served—not a mailbox-only or telephone-answering setup. See Ala. Code § 10A-1-5.31 and the SOS LLC guidance.
Consider whether you can reliably receive legal documents at that address during business hours. If your day is spent at customer sites or events, a commercial agent may be more practical. Compare delivery procedures and renewal costs before choosing.
Plan your address use before filing. Alabama business records are publicly searchable. The registered-office address is one field; mailing and other required addresses are separate. Hiring an agent does not automatically make every address on the filing private. Supply accurate information in every field.
After formation: privilege tax and local licenses (no SOS annual report)
Alabama LLCs do not file a Secretary of State annual report. Corporate annual-report statutes were separately repealed for SOS filings (HB 230 / Act 2024-213, effective October 1, 2024). LLCs still update tax and entity information through the Alabama Department of Revenue Business Privilege Tax process when a filing is required.
Under current ADOR rules described for taxable years 2025 and later, entities whose calculated privilege tax would be only the $100 minimum generally have no PPT filing requirement; when calculated tax exceeds $100, Form PPT (and related initial BPT timing rules) can apply. Confirm the current ADOR instructions for your tax year rather than assuming a flat SOS-style report fee.
Separately, many counties require a business privilege license. Amounts and forms vary by county—there is no single statewide SOS price. Budget for that local step before you open doors.
Starting near year-end? Alabama allows a delayed effective date/time on the formation instrument within statutory limits. Choose the date around your actual start of operations, not only around fee calendars.
Get your Alabama LLC filing underway
Put the formation paperwork in ZenBusiness’s hands. Starter has a $0 service fee plus the applicable Alabama charges detailed above.
Continue to ZenBusiness to enter your details and review your order. Optional services and renewal details.
We may earn a commission if you buy through our links, at no additional cost to you.
Put your approved LLC to work
- Document how the LLC works. An operating agreement can set ownership, contributions, decision-making, distributions, and exits. Alabama does not require you to file the OA with the SOS—keep it with company records. For multiple owners, resolve disagreements before money or contracts are committed.Use the basic LLC operating agreement tool as a starting point.
- Get an EIN when needed. Form the entity first, then use the free IRS application if eligible. A paid EIN service handles the application for you.
- Open your business bank account. Ask the bank for its document checklist and start bookkeeping under the correct legal name.
- Complete taxes and operating approvals. Formation does not issue a professional license or choose S-corporation taxation for you. Review IRS LLC tax classifications, ADOR accounts, and county/city requirements for your work.
- Check the current BOI rule. As of this review, FinCEN exempts entities created in the United States from beneficial-ownership reporting. A newly created Alabama LLC falls within that exemption. Consult FinCEN directly for the current rule.
Insurance guidance for your Alabama business
Match coverage to your services, employees, equipment and client contracts. Start with the relevant guide:
Continue with the Alabama business guide for the broader startup process.
Alabama business privilege tax after formation
For 2026, an LLC whose calculated Alabama Business Privilege Tax is $100 or less owes no BPT and files no BPT return. If the calculated tax is more than $100, a pass-through or disregarded LLC generally files Form PPT; an LLC taxed federally as a corporation files Form CPT. The return due date follows the corresponding federal return, although payment is still due on the original date. Ordinary limited-liability entities have a $15,000 maximum; a qualifying family LLE has a $500 maximum.
ADOR states that a late-filed PPT is subject to 10% of tax due or $50, whichever is greater. Late payment is generally 1% per month, up to 25%. See the 2026 Form PPT instructions and ADOR Business Privilege Tax guidance.
Alabama LLC questions before you start
What is the cheapest way to form an Alabama LLC?
The statutory minimum is $225: a $25 name reservation by mail plus a $200 Certificate of Formation. Online through Alabama Interactive typically runs about $28 for the reservation and $208 for formation (roughly $236), because of portal convenience charges. ZenBusiness Starter adds a $0 formation service fee on top of the state charges.
Do I have to reserve an Alabama LLC name before filing?
Yes. Alabama requires a Certificate of Name Reservation before you file the Certificate of Formation. Attach or reference that reservation with the formation filing. Online reservations print immediately; they are not mailed.
Does Alabama require an annual report for LLCs?
There is no Secretary of State annual report for Alabama LLCs. Entity and tax information is handled through the Alabama Department of Revenue Business Privilege Tax process when a filing is required. County business privilege licenses are separate and vary by county.
Does forming an LLC give me an Alabama business license?
Formation creates the entity with the Secretary of State. County privilege licenses, industry permits, and tax accounts are separate steps before you open.
Can I get an EIN without buying a service?
Yes. The IRS issues EINs free. Form the LLC first, then check eligibility for the IRS online application or use its alternative application instructions.
This guide is for creating a new Alabama LLC. If you already have an LLC formed in another state, check Alabama’s foreign-qualification rules before creating a second company.
Page updated October 14, 2026. State-source review: September 14, 2026. ZenBusiness package terms checked October 14, 2026.