Alabama LLC cost at a glance
| Cost | Alabama amount |
|---|---|
| Cost to form | $200, plus a required name reservation ($25 by mail, $28 online) |
| Business Privilege Tax (Department of Revenue) | $0 when the calculated tax is $100 or less |
| When it is due | Initial return within 2.5 months of formation; annual return with the federal return |
| State tax on the LLC | Business Privilege Tax, exempt when $100 or less |
| First-year state fees (minimum) | $225 |
| Yearly state fees after that (minimum) | $0 |
| Registered agent | Required. Free if you act as your own; commercial services charge a yearly fee |
| EIN from the IRS | $0 |
Fees verified October 2026 against the Alabama Secretary of State and other official Alabama sources listed at the end of this page.
How much does it cost to form an LLC in Alabama?
The Alabama Secretary of State charges $200 to file a Certificate of Formation for an LLC. The Secretary of State passes $100 of that fee to the county. You can file online or by mail, and online filings add a vendor portal fee.
Alabama makes a name reservation mandatory. You reserve the name first, for $25 by mail or $28 online, and attach the reservation certificate to the Certificate of Formation. That brings the minimum cost of forming to $225.
Expedited service costs $100 on top of the filing fee.
Our walkthrough on how to file articles of organization in Alabama covers the form field by field.
How much does an Alabama LLC cost every year?
Alabama LLCs file no annual report with the Secretary of State. The recurring obligation is the Business Privilege Tax, administered by the Alabama Department of Revenue.
An LLC files its initial privilege tax return (Form BPT-IN) within two and a half months of formation. After that, the annual return for a pass-through LLC (Form PPT) is due with the LLC’s federal return. For tax years beginning after 31 December 2023, an LLC whose calculated privilege tax is $100 or less is exempt and files no annual return (Act 2022-252).
What does an Alabama LLC cost over the first three years?
The table below adds up the state fees an Alabama LLC pays in its first three years, using the minimum amounts Alabama charges. The second column adds the BusinessAnywhere registered agent service, which is free for the first year and $147 a year after that.
| Year | State fees only | With a registered agent service |
|---|---|---|
| Year 1 | $225 | $225 |
| Year 2 | $0 | $147 |
| Year 3 | $0 | $147 |
| Three-year total | $225 | $519 |
Does Alabama charge a franchise tax or income tax on LLCs?
Alabama’s Business Privilege Tax is calculated from the LLC’s net worth in Alabama, and an LLC whose tax works out to $100 or less pays nothing. That exemption covers most new and small LLCs.
Profit passes through to the members, who pay Alabama individual income tax on their share. An LLC that elects to be taxed as a corporation pays Alabama corporate income tax instead.
How much does a registered agent cost in Alabama?
Every Alabama LLC must name a registered agent with a physical street address in Alabama. Acting as your own agent costs nothing, but your address goes on the public record and you must be available at that address during business hours. Commercial registered agent services charge a yearly fee for the same role.
The BusinessAnywhere registered agent service is free for the first year and $147 a year after that, with every document scanned to your online dashboard the day it arrives.
Our Alabama registered agent guide explains the state rules in full.
If you are weighing the free option, read can I be my own registered agent first.
Does an Alabama LLC need an EIN, and what does it cost?
An EIN costs nothing when you apply directly with the IRS. An Alabama LLC needs one to hire employees, to open a business bank account and whenever it has more than one member. US residents with an SSN or ITIN apply through the IRS online EIN application and receive the number at the end of the session.
Founders outside the United States cannot use the online tool. They apply by phone, fax or post with IRS Form SS-4, and do not need an SSN to do it. The BusinessAnywhere EIN application service handles that process for $97. Our guide on how to obtain an EIN for your LLC covers both routes.
What other Alabama LLC fees should you budget for?
These fees apply only when you need the service. They are the Alabama state charges as of October 2026.
| Item | Fee | Notes |
|---|---|---|
| Name reservation | $25 mail, $28 online | Name reservation is required before filing the Certificate of Formation; a copy of the reservation certificate must be attached |
| Expedited filing | $100 | Expedited service fee (excludes name reservations and certificates) |
| Certificate of good standing | $25 mail, $28 online | Certificate of Existence; online version printable immediately |
| Certified copy | $10 per document plus copy fees | Certification $10 per document; copies $2 per page ($3.50 per page online) |
| Foreign LLC registration | $150 | Foreign entity registration; name reservation also required first |
An operating agreement carries no state fee in Alabama, and Alabama does not collect it, but every LLC should have one to set out ownership and decision rights. BusinessAnywhere sells an operating agreement template for $97.
What happens if you miss an Alabama LLC deadline?
Because Alabama has no Secretary of State annual report for LLCs, there is no annual report deadline to miss. The deadlines that matter belong to the Department of Revenue: the initial privilege tax return within two and a half months of formation, and the annual return with the federal return when tax is owed.
Privilege tax returns are required for every year the LLC stays registered with the Secretary of State, unless the tax due is $100 or less. Formally dissolving the LLC with the Secretary of State ends that obligation.
If you intend to close the business, file formally instead of letting it lapse. Our guide on how to dissolve an LLC in Alabama sets out the steps.
How does Alabama compare with other states?
Alabama is expensive to form and cheap to keep. The $225 minimum cost of forming, with the mandatory name reservation, is more than twice the $100 national median, but most small LLCs pay the state nothing after that.
| State | Formation fee | Yearly state fees (minimum) | What drives the cost |
|---|---|---|---|
| Alabama | $200 | $0 | $200 to form plus required name reservation, $0 yearly for most |
| Georgia LLC cost | $110 | $60 | $110 to form, $60 annual registration |
| Tennessee LLC cost | $300 | $400 | $300 minimum to form and report, $100 minimum franchise tax |
| Florida LLC cost | $125 | $138.75 | $138.75 annual report, $400 late fee |
| Delaware LLC cost | $110 | $400 | $400 flat annual tax due 1 June |
| Wyoming LLC cost | $100 | $60 | $60 minimum license tax, no income tax |
For all 51 jurisdictions side by side, see our full table of LLC cost by state.
How to form an Alabama LLC for $0 plus state fees
BusinessAnywhere files your Alabama LLC for $0 plus the $200 state fee. The filing comes with a free first year of registered agent service, so your first-year cost is the state fee and nothing else.
- Formation: $0 service fee plus the Alabama filing fee.
- Registered agent: free for the first year, then $147 a year.
- EIN application: $97, with no SSN required for non-US founders.
- Compliance reminders: every Alabama deadline on this page tracked in your dashboard.
- Virtual mailbox: a US street address with mail scanning, from $20 a month.
Start with our LLC formation service, or read the full guide on how to start an LLC in Alabama first.
Alabama LLC cost FAQs
How much does an LLC cost in Alabama?
An Alabama LLC costs $200 to form plus a required name reservation of $25 by mail or $28 online. Most small LLCs then pay the state $0 a year.
Do I need a name reservation to form an Alabama LLC?
Yes. Alabama requires a name reservation before you file the Certificate of Formation, and the reservation certificate is attached to the filing.
Does an Alabama LLC file an annual report?
Not with the Secretary of State. Alabama LLCs deal with the Business Privilege Tax at the Alabama Department of Revenue instead.
What is the Alabama Business Privilege Tax for LLCs?
A tax calculated from the LLC’s Alabama net worth. For tax years beginning after 31 December 2023, an LLC whose tax is $100 or less is exempt and files no annual return.
When is the initial Alabama privilege tax return due?
Form BPT-IN is due within two and a half months of the LLC’s formation.
How much does an Alabama LLC cost over three years?
At the minimum, $225 in state fees, all paid at formation, for an LLC whose privilege tax stays at $100 or less. With a commercial registered agent from year two at $147 a year, the total is $519.
Sources
- Alabama Secretary of State, limited liability companies
- Alabama Secretary of State, domestic LLC Certificate of Formation
- Alabama Secretary of State, fee schedule
- Alabama Department of Revenue, Business Privilege Tax
- Official Alabama source: Expedited filing fee
Fees change. Every figure on this page was checked against the official source in October 2026. Confirm the current amount with the Alabama Secretary of State before you file.
