Start a Free LLC in Alabama

Per the Alabama Secretary of State, as of September 2026, Alabama charges $200 to file the Certificate of Formation. After that, the Alabama Business Privilege Tax Return (Form PPT) is free to file every year. With LLC Register, formation is included in the $99-a-year Alabama registered agent service, so year one costs $299.

Online filings are approved immediately. Mailed paper filings are processed in the order received, and the state publishes no turnaround time for them. Alabama does not offer paid expedited processing for LLC formations. Your LLC exists once the state accepts your filing.

To start an LLC in Alabama, choose an available name, appoint an Alabama registered agent, and file the Certificate of Formation with the Alabama Secretary of State for $200. Then sign an operating agreement, get a free EIN from the IRS, open a business bank account and register for any state taxes. LLC Register files it for you as part of the $99-a-year registered agent service.

Yes. You can file online through Alabama Interactive, or by mailing the paper Certificate of Formation to the Secretary of State. The Certificate of Formation costs $200.

In Alabama you form an LLC by filing the Certificate of Formation with the Alabama Secretary of State. Other states call this document the articles of organization or the certificate of formation. The filing fee is $200.

No. Alabama does not offer paid expedited processing for LLC formations. Online filings are approved immediately. Mailed paper filings are processed in the order received, and the state publishes no turnaround time for them.

Use the Alabama Secretary of State's free online business name search to check whether your LLC name is available. Your Alabama LLC name must include "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C.". It must be distinguishable from every other name, reservation and registered trade name on file with the Secretary of State, and you must reserve the name before you file the Certificate of Formation.

Your Alabama LLC name must include "Limited Liability Company" or an abbreviation such as "LLC" or "L.L.C.". It must be distinguishable from every other name, reservation and registered trade name on file with the Secretary of State, and you must reserve the name before you file the Certificate of Formation. The rules are set by the Alabama Limited Liability Company Law of 2014, Code of Alabama 1975, Title 10A, Chapter 5A.

Yes. You can reserve a name for $25 ($27.75 filed online); the reservation is mandatory before formation and the certificate must be attached to your Certificate of Formation. A reservation is optional; filing the formation document also secures the name.

Yes. Every Alabama LLC must have a registered agent. Your registered agent needs a physical street address in Alabama; a P.O. box is not accepted. Only one agent may be named, and the agent must consent to serve.

Yes. A member or manager can serve as the LLC's own registered agent as long as they have a physical street address in Alabama and consent to serve. Your address becomes public record, and someone must be there during business hours to accept legal papers.

Not as your registered agent's address. Your registered agent needs a physical street address in Alabama; a P.O. box is not accepted. Only one agent may be named, and the agent must consent to serve. A PO box can usually serve as a mailing address, but the registered agent needs a physical address in Alabama.

File the Change of Registered Agent or Registered Office by Entity with the Alabama Secretary of State. The fee is $100.

Serving as your own Alabama registered agent is free if you qualify. Commercial registered agents charge a yearly fee. LLC Register's Alabama registered agent service is $99 a year and includes LLC formation and annual report filing.

Yes. Alabama LLCs must file the Alabama Business Privilege Tax Return (Form PPT) every year. There is no state fee to file it.

Per the Alabama Secretary of State, as of September 2026, there is no state fee to file the Alabama Business Privilege Tax Return (Form PPT). It is due on the same date your LLC's federal partnership or S corporation return is due. LLC Register files it for you at no extra service fee while your registered agent service is active.

Filing late adds a penalty of 10% of the tax due or $50, whichever is greater, plus 1% interest per month unpaid. If your computed tax is $100 or less, you owe nothing and do not have to file at all. File as soon as possible to keep your LLC in good standing.

Alabama charges every LLC a Business Privilege Tax based on net worth, from $0.25 to $1.75 per $1,000, capped at $15,000 a year ($500 for an electing family LLC). If your computed tax is $100 or less, you owe nothing and have no filing requirement; otherwise you file Form PPT.

A single-member LLC's profits are reported on the owner's Alabama individual return. A multi-member LLC files an informational partnership return (Form 65), and profits pass through to be taxed on each member's Alabama return, at rates up to 5%. Alabama also lets eligible LLCs elect to pay Alabama tax at the entity level instead. Federally, a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership, unless it elects to be taxed as a corporation.

If you sell taxable goods or services, register for a Sales Tax License with the Alabama Department of Revenue through My Alabama Taxes. Online registration is free.

Before you hire, register as an employer with the Alabama Department of Labor for unemployment insurance through its eGov system, and with the Department of Revenue for income tax withholding through My Alabama Taxes. You also need an EIN from the IRS before you run payroll.

It depends on your industry and location: Alabama regulates some professions and activities through state licenses, and many cities and counties require local business licenses. Start with the Business Essentials for State Taxpayers (B.E.S.T.), Alabama Department of Revenue.

Alabama does not require an LLC operating agreement, and you never file one with the state. The Certificate of Formation is the only mandatory formation document. LLC Register includes an operating agreement with every Alabama LLC it forms.

You need an EIN if your LLC has employees or more than one member, and most banks ask for one to open a business account. A single-member LLC without employees can use the owner's Social Security number for federal taxes, but an EIN keeps it off business paperwork.

Apply for free on the IRS website once the state has approved your LLC; online applicants receive the EIN immediately. Owners without a Social Security number can apply with Form SS-4 by fax or mail.

Yes. You do not have to live in Alabama or be a U.S. citizen to form an Alabama LLC. You do need a registered agent with a physical address in Alabama. Non-U.S. owners without a Social Security number apply for an EIN with IRS Form SS-4.

Yes. Alabama allows an LLC with a single owner. By default the IRS taxes a single-member LLC like a sole proprietorship, reported on the owner's personal return.

Yes. Alabama allows a Series LLC under Title 10A, Chapter 5A, Article 11, selected by checking a box on the Certificate of Formation.

Yes. Licensed professionals can form a Professional LLC under Title 10A, Chapter 5A, Article 8, by checking the professional designation on the Certificate of Formation.

No. Alabama does not require newspaper publication to form an LLC.

Order a Certificate of Existence from the Alabama Secretary of State for $25. Banks, lenders and other states often ask for one as proof your LLC is current with the state.

An LLC formed in another state registers to do business in Alabama by filing the Foreign LLC Application for Registration with the Alabama Secretary of State. The fee is $150, and the LLC needs an Alabama registered agent.

File the Amendment to Certificate of Formation with the Alabama Secretary of State for $100. Amend when you change your LLC's name or other information in the formation document.

File the Articles of Dissolution with the Alabama Secretary of State for $100. Before you file, wind up the business: pay debts, close tax accounts and distribute what is left to the members.

Alabama has no mandatory DBA filing. If you want state-level protection for a trade name, register it with the Secretary of State's Trademarks Division for $30; the registration lasts 5 years and can be renewed. A DBA lets your LLC trade under another name without forming a new company.

Yes. An eligible LLC can elect S corporation tax status by filing IRS Form 2553. The election can reduce self-employment tax once profits are high enough to pay yourself a reasonable salary. A single-member LLC's profits are reported on the owner's Alabama individual return. A multi-member LLC files an informational partnership return (Form 65), and profits pass through to be taxed on each member's Alabama return, at rates up to 5%. Alabama also lets eligible LLCs elect to pay Alabama tax at the entity level instead.

An LLC separates your personal assets from business debts and lawsuits, keeps pass-through taxation, and needs less paperwork than a corporation. In Alabama it costs $200 to form and the Alabama Business Privilege Tax Return (Form PPT) is free every year.

A sole proprietorship costs nothing to start, but you are personally liable for the business's debts. An Alabama LLC costs $200 to form and protects your personal assets, with the same pass-through taxes by default.

Usually not if your business operates in Alabama. An out-of-state LLC doing business here must also register as a foreign LLC in Alabama for $150 and keep an Alabama registered agent, so you pay two states' fees.

No. Formation is included in the $99-a-year Alabama registered agent service. The state still charges its $200 filing fee, which we pass through at cost.

For $99 a year plus the $200 state fee: Alabama LLC formation in year one, an Alabama registered agent, an operating agreement, and filing of your Alabama Business Privilege Tax Return (Form PPT) every year. Renewal is $99 a year. State fees are passed through at cost.

No. FinCEN has exempted companies created in the United States from beneficial ownership information (BOI) reporting. Only foreign companies registered to do business in a U.S. state still have to report.

The Alabama Secretary of State, Business Entities Division, handles LLC formations, amendments and annual filings. Its office is at 770 Washington Avenue, Suite 580, Montgomery, AL 36104 (mail: P.O. Box 5616, Montgomery, AL 36103-5616).

Yes, you should. Mixing business and personal money can weaken the liability protection your LLC gives you. Banks usually ask for your filed Certificate of Formation, your EIN and your operating agreement.

The Alabama Business Privilege Tax Return (Form PPT) is due on the same date your LLC's federal partnership or S corporation return is due. Your first one is due within two and one-half months of forming your LLC, using the initial Business Privilege Tax Return (Form BPT-IN). It is filed with the Alabama Department of Revenue, Business Privilege Tax Section, not the Secretary of State.