How to Form an LLC in Alabama
Everything you need to form a Limited Liability Company in Alabama (AL). Filing fee: $236 | Processing time: 7-10 business days
Filing Fee
$236
Annual Report
No annual report required; Business Privilege Tax applies
Processing Time
7-10 business days
Online Filing
Yes
State Income Tax
2% to 5% individual income tax; 6.5% corporate income tax
Steps to Form an LLC in Alabama
1
Choose a unique LLC name and check availability with the Alabama Secretary of State
2
Appoint a registered agent with a physical address in Alabama
3
File the Certificate of Formation with the Alabama Secretary of State
4
Pay the $236 filing fee
5
Obtain an EIN from the IRS
6
File the Initial Business Privilege Tax Return
7
Create an Operating Agreement for your LLC
Pros of Forming in Alabama
- ✓No annual report filing requirement for LLCs
- ✓Relatively low cost of living and doing business
- ✓Strong protections for single-member LLCs
Cons of Forming in Alabama
- ✗Higher-than-average filing fee at $236
- ✗Business Privilege Tax applies to all LLCs
- ✗Limited online filing options compared to other states
Best For
Small businesses operating locally in Alabama that want to avoid annual report filings.
Calculate Your Alabama LLC Costs
Get a detailed cost breakdown for forming your LLC in Alabama, including filing fees, registered agent costs, and more.
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