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Form an LLC in Alabama

How to start an LLC in Alabama.

What the state asks for, what it charges, and what to file after you form. Fees checked against official Alabama sources in .

Low yearly costs: small LLCs owing $100 or less in Business Privilege Tax are fully exempt, and there is no state annual report.

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Alabama at a glance

State filing fee
$200
Certificate of Formation
Annual tax
$0 for most small LLCs
Every year
Filed with
Alabama Secretary of State
Operating agreement
Not required

Business Privilege Tax applies, but calculated liabilities of $100 or less are fully exempt. Higher liabilities are payable. These are the state's own fees, separate from ours, and they can change. Confirm with the Alabama Secretary of State before you file.

Forming an LLC in Alabama, step by step.

  1. 1

    Choose a name and check it

    Your name needs "LLC" or a similar designator and must be distinguishable from names on record. Search the Alabama business database first.

  2. 2

    Appoint a registered agent

    Someone with a street address in Alabama who accepts legal papers and official notices for the LLC. You can serve yourself or use a registered agent service.

  3. 3

    File the Certificate of Formation

    File with the Alabama Secretary of State. The state fee is $200. A name reservation is required before formation. The statutory reservation fee is $25; online processing may cost more.

  4. 4

    Write an operating agreement

    Not required. Either way it sets ownership, money, and decisions in writing. See the operating agreement guide.

  5. 5

    Get an EIN

    The business's federal tax ID, free from the IRS. Our EIN assistance can prepare it.

  6. 6

    Register for sales tax if you sell taxable items

    Alabama issues a Sales Tax License through the Alabama Department of Revenue. Check local licenses too.

  7. 7

    File your Annual tax

    Every year: generally the same deadline as the applicable Alabama income tax return. The fee is $0 for most small LLCs.

General information, not legal or tax advice. State rules and fees change; this page was last checked in October 2026. YaH Brands is not a law firm or an accounting firm.

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Alabama LLC questions

  • The state filing fee for the Certificate of Formation is $200. A name reservation is required before formation. The statutory reservation fee is $25; online processing may cost more. Plan for ongoing costs too, including the Annual tax fee of $0 for most small LLCs. Business Privilege Tax applies, but calculated liabilities of $100 or less are fully exempt. Higher liabilities are payable.

  • Yes. Alabama requires a Annual tax every year. The fee is $0 for most small LLCs, due generally the same deadline as the applicable Alabama income tax return.

  • Not required. Having one is still a good idea for any LLC, and banks often ask for it.

  • Yes. Every Alabama LLC must keep a registered agent with a physical address in the state to accept legal papers and official notices.