How to Start an LLC in Alabama
Form your Alabama LLC online with transparent pricing, registered agent service and real human support. Incofile prepares and files your Certificate of Formation for you.
Start My Alabama LLCStart your Alabama LLC in minutes
We handle the paperwork with the state.
Alabama LLC filing fee & timeline
To form an LLC in Alabama you file your Certificate of Formation with the state and pay the state filing fee of $200. Incofile adds a flat, one-time service fee on top — no monthly charges — and your total is always shown before you pay.
Most Alabama LLC filings are prepared and submitted within one business day. State approval time depends on Alabama's current processing queue, typically ranging from a few business days to a few weeks, with expedited options available in many states.
Why form an LLC in Alabama
Alabama has one extra step: you must reserve your LLC name ($25) before you file the $200 Certificate of Formation. After that, yearly costs are low — since 2024, LLCs whose business privilege tax would be $100 or less are exempt and do not file the return.
Alabama LLC at a glance
| State filing fee | $200 (card payments online add a convenience fee) |
|---|---|
| Document filed | Certificate of Formation |
| Name reservation | Required before filing; $25 |
| Standard approval time | Online filings are usually processed quickly; paper filings take longer |
| Yearly filing | Business Privilege Tax Return and Annual Report with the Alabama Department of Revenue |
| Small-business exemption | No return is required if the business privilege tax is $100 or less (tax years from 2024) |
| State income tax | 2%, 4% and 5% brackets; 5% applies above $3,000 for single filers |
| Registered agent | Required; one agent with an Alabama street address (no PO boxes) |
State figures checked against the Alabama Secretary of State, Business Entities Division, September 2026. State fees are set by Alabama and can change; the exact total is shown before you pay.
How to form an LLC in Alabama — 4 steps
Choose your package
Pick the Incofile package that fits your goals. Your Alabama state filing fee is shown before you pay.
Tell us about your LLC
Complete our short form with your company name, address and ownership details — about ten minutes.
We check & file with Alabama
We confirm your name is available and file your Certificate of Formation with the Alabama state office.
Get your documents
Your approved Alabama LLC documents land in your dashboard, with reminders for your annual report and other deadlines.
What you need to form an LLC in Alabama
- A business name that is available and meets Alabama's naming rules (it must include “LLC” or “Limited Liability Company”).
- A registered agent with a physical address in Alabama — Incofile can be your agent.
- Certificate of Formation filed with the Alabama state office — we prepare and submit these for you.
- An operating agreement and EIN to open a business bank account (included in our Gold and Platinum packages).
- Ongoing compliance — Alabama's reports, taxes and registered agent rules (see below). We track the deadlines and remind you.
Operating agreement
An operating agreement sets out who owns the LLC, how profits are split, how decisions are made and what happens if a member leaves. Alabama does not ask you to file it with the state, but banks usually want to see it, and without one the state's default rules apply. Incofile includes a customised operating agreement in the Gold and Platinum packages.
EIN (Employer Identification Number)
Your EIN is the federal tax ID for your LLC. You need it to open a business bank account, hire staff and file taxes. The IRS issues it free — online in minutes if you have a Social Security number, or by fax or mail (one to eight weeks) if you don't. Our Gold and Platinum packages include it, and it is also available as a separate service.
This is general information, not legal advice. If you're unsure which structure is right, compare LLC vs S-Corp vs C-Corp.
Alabama LLC naming rules
The name must contain "Limited Liability Company", "L.L.C." or "LLC" and must be reserved with the Secretary of State before filing. Check availability first with our free business name search.
Keeping your Alabama LLC compliant
Business privilege tax
Alabama LLCs file the Business Privilege Tax Return and Annual Report (Form PPT) with the Department of Revenue, due with the LLC's federal return. Since tax years beginning in 2024, an LLC whose privilege tax would be $100 or less is fully exempt and does not file. Late filing is penalised at the greater of 10% or $50.
Name reservation
Alabama requires you to reserve the LLC name with the Secretary of State before filing, and a copy of the Name Reservation Certificate is filed with the Certificate of Formation. The reservation fee is $25.
Registered agent
Alabama requires a single registered agent with a physical street address in the state. If you form from outside Alabama, a professional agent such as Incofile is the simplest option.
Taxes
Owners pay Alabama income tax on their share of profit at 2%, 4% and 5%. Sellers of taxable goods register for sales tax with the Alabama Department of Revenue through My Alabama Taxes.
Incofile clients get every Alabama deadline tracked in their dashboard with email reminders — see registered agent service.
Official Alabama resources
Alabama LLC — frequently asked questions
How much does it cost to start an LLC in Alabama?
Incofile charges a flat, one-time formation fee (Silver, Gold or Platinum) plus the Alabama state filing fee of $200. There are no monthly charges, and the total is shown before you pay.
How long does it take to form an LLC in Alabama?
We prepare and submit your Alabama Certificate of Formation within one business day. State approval times vary from a few business days to a few weeks; expedited filing is available in many states.
Do I need a registered agent in Alabama?
Yes. Alabama requires every LLC to have a registered agent with a physical address in the state to receive legal and state mail. Incofile can serve as your Alabama registered agent so you stay compliant and keep your address private.
Can I start an LLC in Alabama if I live in another state or country?
Yes. You do not need to live in Alabama to form an LLC there. Incofile can act as your registered agent and provide a business address, so you can form and run your Alabama LLC from anywhere.
How much does it cost to form an LLC in Alabama?
The state charges $200 for the Certificate of Formation, plus $25 for the name reservation that Alabama requires before you file.
Do I have to reserve a name in Alabama?
Yes. Alabama requires a name reservation before the Certificate of Formation is filed, and the reservation certificate is filed with it.
Does an Alabama LLC pay business privilege tax?
LLCs file the Business Privilege Tax Return and Annual Report with the Department of Revenue. Since 2024, if the tax would be $100 or less, the LLC is exempt and does not need to file.
What is the Alabama income tax rate?
Alabama uses brackets of 2%, 4% and 5%; for single filers the 5% rate applies to income above $3,000.
Ready to launch your Alabama LLC?
Most orders are prepared and submitted within one business day.
Start My Alabama LLC