What is different about forming an LLC in Alabama.
Every state runs its own filing office, its own fee schedule and its own ongoing obligations. These are the ones that apply in Alabama.
| Item | Amount | Detail |
|---|---|---|
| LLC filing fee | $200 | Paid to the state, at cost. File.Business charges $0 to prepare and file it. |
| Corporation, for comparison | $200 | |
| Nonprofit | $200 | |
| Professional LLC (PLLC) | $200 | |
| Series LLC | $200 | |
| Ongoing state report for an LLC | None | Alabama has no Secretary of State report for any entity type. |
| Registering an out-of-state LLC here | $150 | No certificate of good standing required. Filed on the Application for Registration of Foreign LLC/Corporation. |
What the Alabama fee schedule actually says
Corporations no longer file an annual report with the Secretary of State: Ala. Code 10A-2A-16.11 was REPEALED by Act 2024-213 effective 2024-10-01. LLCs never filed one. The Business Privilege Tax minimum was eliminated for tax due of 100 or less with no return required from TY2024, so a typical small Alabama entity now pays 0 in recurring state filing fees.
Verified 2026-09-06 · against Ala. Code 10A-2A-16.11 (marked REPEALED BY ACT 2024-213, EFFECTIVE OCTOBER 1, 2024) and the Alabama Secretary of State newsroom statement that HB 230 removes the requirement for businesses to file an annual report with the Secretary of State's Office; business privilege tax exemption confirmed against the Alabama Department of Revenue 2024 BPT notice
What forming an LLC in Alabama actually involves.
Certificate of Formation
The Certificate of Formation is the founding Alabama document. We prepare and file with the SOS using your entity name, organizer info, RA, and member structure.
~7 day Alabama processing
Alabama SOS typically processes standard LLC filings in 7 business days. Expedited options available for an extra state fee (varies $25-$200).
Registered Agent included
Alabama requires every LLC to maintain a Registered Agent. RA service is included year one in every formation bundle.
EIN from the IRS
Your Alabama LLC needs a federal EIN for banking, taxes, and payroll. We file Form SS-4 with the IRS, typically 1-2 business days, faster than DIY filings.
Operating Agreement
Alabama doesn't require filing an Operating Agreement with the SOS, but every Alabama LLC needs one to define member rights, voting, profit splits, and dissolution rules. Included in Domestic Complete.
Year-one compliance
Forming the LLC is step one. Alabama requires ongoing compliance: Business Privilege Tax, Dept. of Revenue, where due, state tax registrations, license renewals. Domestic Complete includes year-one AR AutoFile.
A clean handoff, in 6 steps.
Pick your Alabama LLC name
We check Alabama SOS name availability live. Your chosen name must include "LLC" or variant and not conflict with existing Alabama registrations.
Designate Registered Agent
Every Alabama LLC needs a RA with a physical Alabama address. We provide one (included year one) or you can designate your own.
Prepare Certificate of Formation
Member info, RA, principal office, management structure (member-managed vs manager-managed), effective date. We draft and review with you.
File with Alabama SOS
Submitted electronically with $200 state fee. 7-day standard processing. State-stamped Articles return to your BOS vault.
EIN + Operating Agreement
After SOS acceptance: IRS EIN application (1-2 days), Operating Agreement drafted, S-Corp election if requested (Form 2553).
Year-one compliance setup
Alabama Business Privilege Return added to your calendar (due Mar 15). RA active. Compliance Score baseline established.
Formation is free. Everything else is optional.
We do not charge a service fee to form your LLC or Corporation. State filing fees still apply and pass through at cost. Add the Compliance Bundle to handle the year-one filings everyone needs.
- LLC or Corporation formation (any state)
- EIN application with the IRS
- Certificate of Formation or Incorporation drafted and filed
- Free BOS dashboard for ongoing visibility
- Filing receipts to your document vault
- Everything in Free Formation (no add-on fee)
- Registered Agent service in your state (1 entity)
- Annual Report AutoFile, filed every year on time
- Certificate of Good Standing (1 included per year)
- 1 Amendment included per year (address, member, name)
- Operating Agreement (LLC) or Bylaws (Corp)
- Deadline monitoring across all your filings
Common questions.
Do I need to live in Alabama to form an LLC there?
No. You do not need to live in Alabama or be a resident to form an LLC there. What Alabama requires is a registered agent with a physical in-state address to receive legal mail, which we provide, or you can act as your own if you have an Alabama address and are available in business hours. Where you live does not limit where you can form.
What is the difference between an LLC and a corporation in Alabama?
An LLC is simpler and pass-through: profit lands on your personal return and there is little required formality, which suits most owners in Alabama. A corporation is built to raise venture capital and issue stock, but it adds bylaws, a board, and annual meetings. If you plan to raise money, look at forming a corporation; otherwise the LLC-versus-corporation comparison lays out the tradeoffs.
Does Alabama require an Operating Agreement?
Alabama may not require you to file one, but you should have one. The Operating Agreement sets who owns what, who can sign, and what happens if an owner leaves, and it is the document that shows the LLC is a genuine separate entity, which protects your liability shield. Banks and lenders also ask for it. Generate one that fits your ownership with our Operating Agreement tool.
What about the EIN for my Alabama LLC?
The EIN is your business's federal tax ID, and you need it to open a bank account, hire, or file taxes. It is free from the IRS, and we obtain it for you the same day, including for founders without a Social Security Number. Keeping the EIN separate from your SSN also keeps your personal number off vendor and client paperwork. Start with our EIN guide.
Can a foreign person form an Alabama LLC?
Yes. You do not need to be a US citizen or resident to own or form an Alabama LLC, and you never have to set foot in the state. The one extra step is the EIN, which we obtain from the IRS for you when you have no Social Security Number, and that unlocks US banking and payment processing. Our EIN guide is the right starting point for international founders.
What ongoing compliance does an Alabama LLC require?
Forming is the start, not the finish. An Alabama LLC generally files a periodic annual report, keeps a registered agent on record, and pays any state franchise tax. Miss the report and Alabama can administratively dissolve the LLC, ending the protection you formed it for. A compliance calendar keeps every date in view, and our subscription can file them for you.
Can I change my Alabama LLC name later?
Yes. If you outgrow the name or rebrand, you change it by filing Articles of Amendment with Alabama, which updates the official record; your EIN and entity stay the same. If you would rather keep the legal name and operate under a different public name, a DBA does that without a full amendment. We handle either the amendment or the DBA for you.
Where to next?
Every filing connects into your File.Business operating system. Pick where to go from here: we keep the rest tracked. Or start by looking up any Alabama company on the state record.
Up a level, or across to the neighbors.
Form an LLC by state
The national explainer above this page: what changes between jurisdictions, and why.
Open the hub → SectionForm a business
Every formation route, each with a page per state.
Open the section → StateAlabama business filings
Every filing a business makes in Alabama, gathered on one page.
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