Forming an Alabama LLC — What It Costs and How It Works
Reliable registered agent coverage for Alabama entities. Flat $99/year for the office address, same-day scanning of court papers, and reminders before state deadlines.
An Alabama LLC comes into being via one state filing, depends on a registered agent thereafter, and asks for a few small things each year. $236 buys your state filing, several business days is the wait, and then recurring fees become your year-to-year concern. What follows covers all the steps, the full pricing view, and what our role looks like.
Build Your Alabama LLC — $199
A single $199 fee covers prep and submission to Alabama Secretary of State. State turnaround is roughly several business days.
Why Form an LLC in Alabama
A limited liability company sits between a sole proprietorship and a corporation: liability protection like a corporation, taxes like a sole prop. Alabama's small-business landscape leans heavily on the LLC structure for its mix of protection, simplicity, and minimal ongoing compliance.
The Cost Picture for Alabama LLCs
| Item | Cost |
|---|---|
| Our LLC formation service | $199 one-time |
| State filing fee (Alabama Secretary of State) | $236 one-time |
| Registered agent (required for every Alabama LLC) | $99/year |
| State annual report fee | $50/year (Business Privilege Tax min) |
$199 buys our filing service. Alabama Secretary of State receives the state fee directly. The agent service stands alone at $99 annually.
The Steps to Form an Alabama LLC
1. Pick a Name Alabama Secretary of State Will Accept
The Alabama naming requirements come down to two checks — does the name include an LLC designator, and is it distinguishable from existing entities on record? Alabama Secretary of State keeps an online searchable database of registered entities; checking it before you file is the smart move.
Words implying banking, insurance, or government affiliation are restricted in entity names. Skip them unless you've already cleared the relevant authority.
2. Line Up Your Registered Agent
The state-required agent for your LLC has to maintain a physical address in Alabama and be reachable during normal weekday business hours, every business day. Anything you list as agent information is publicly accessible at Alabama Secretary of State. There's no private filing option here.
Sign up for our $99/year agent product. Our address takes the public-record slot on your formation paperwork.
3. Submit the Articles to Alabama Secretary of State
This is the filing that creates the entity: lodge Articles of Organization with Alabama Secretary of State with the $236 fee attached. Required content: the LLC name, the primary business address, the agent's name and street address, the management approach (member-managed or manager-managed), and the the names of the LLC's organizers.
The online channel is Alabama Secretary of State's online portal; it's faster than mail and usually a few dollars cheaper.
Typical processing is several business days from filing to approval. Rush processing can shorten that further for an added fee.
4. Prepare an Operating Agreement
Alabama doesn't require an operating agreement to be filed with the state, but having one is fundamental to running the LLC properly. Topics covered: who owns the LLC, how profits and losses are allocated, who makes decisions, and how member changes are handled. When there's no agreement, Alabama applies its standard LLC defaults — those may or may not align with what you and your members want.
5. Get a Federal Tax ID (EIN)
An EIN serves as the LLC's federal-level tax identifier. It's required for business banking, payroll, and federal taxes. The IRS issues EINs for free at IRS.gov. About ten minutes start to finish and you'll have the number.
Avoid paying for EIN help from outside services: the IRS issues EINs at zero cost via a quick form.
6. Handle Ongoing Compliance
The state expects ongoing compliance once the LLC exists. The recurring items are:
- Keep a current registered agent on the Alabama record at all times
- Deliver Alabama's annual report each year before the deadline
- Stick to clear separation between business banking and your personal banking (distinct accounts, distinct ledgers)
- File for federal taxes and Alabama's tax filings every year
Alabama Secretary of State can dissolve LLCs that fall out of compliance. After dissolution, the liability shield disappears until you reinstate.
We'll handle it for $199. The Alabama formation filing is ours from start to finish.
Why the Registered Agent Rule Matters
The agent requirement applies to every LLC in Alabama — no exceptions, no workarounds. The agent's job is to:
- Keep a verifiable Alabama address (PO boxes alone won't qualify)
- Be at the address throughout the standard business day for service of process
- Move along all received mail and notices quickly enough that the LLC keeps full response time
Private LLC owners often self-appoint, then discover the public-record cost. It then appears in Alabama Secretary of State's public records, searchable by anyone.
For $99 a year, our agent service operates in Alabama. Our address goes on the formation document — yours doesn't.
Common Questions
How much does it cost to form an LLC in Alabama?
Filing costs $236 at the state level. That's above the average state filing fee. Beyond that, the annual report runs $50/year (Business Privilege Tax min).
How long does it take to form an LLC in Alabama?
Plan on about several business days between filing and approval.
Does Alabama require an annual report?
Yes — The state collects $50/year (Business Privilege Tax min) for the annual report.
Do I need a registered agent for my Alabama LLC?
Yes. Alabama requires a registered agent based at an in-state address after formation. It applies from day one and remains active for as long as the LLC.
Can I form an LLC in Alabama if I live in another state?
Yes. Owners of Alabama LLCs don't have to be Alabama residents. The one in-state requirement is the agent. Our $99/year service is exactly that.
Start Your Alabama LLC the Right Way
Doing the filing yourself with Alabama Secretary of State works at Alabama Secretary of State's online portal. A registered agent must still be on file — $236 is paid to Alabama Secretary of State.
Our service plays the registered agent role for your Alabama LLC. For $99 annually, your filing carries our Alabama address, mail is scanned and forwarded the day it arrives, and we ping you before every compliance date.
Looking for the registered agent on its own? The registered agent product is priced at $99 yearly.
More questions about forming an LLC in Alabama or how the agent role works? Our FAQ handles most questions; the contact form is open for the rest.
Ready to get started?
$99 buys a full year of coverage — address on file, same-day scans, deadline alerts.