Alabama LLC cost

Forming a Alabama LLC

You file Certificate of Formation (Domestic LLC) with the Alabama Secretary of State, Business Entities Division. The state fee is $200. See the official fee.

File it yourself with the state →

Every year after

• No Secretary of State annual report; annual Business Privilege Tax return (Form PPT) filed with Alabama Department of Revenue only if tax due exceeds $100: $0, filed every year. Due: BPT return due by the federal income tax return due date for the entity (March 15 for calendar-year pass-through LLCs); not required if BPT due is $100 or less.
• First one: Initial Business Privilege Tax return (Form BPT-IN) due within 2.5 months after formation.
• Official report page

State taxes that apply even to a small LLC

• Business Privilege Tax: $0 — Statutory minimum is $50, but for tax years beginning after Dec 31, 2023 there is a full exemption when tax due is $100 or less (and no return is required), so a small new business with minimal net worth typically owes $0 source

Worth knowing

• A name reservation must be obtained before filing the Certificate of Formation ($25 by mail, $28 online with immediate printing).
• Formation is filed directly with the Secretary of State ($200) since Jan 1, 2021; no county probate filing.
• Corporations no longer file an annual report with the Secretary of State (repealed by Act 2024-213, effective Oct 1, 2024).
• Business Privilege Tax of $100 or less is fully exempt (tax years after 2023), but the initial BPT-IN return is still due 2.5 months after formation.

Registered agent

Alabama requires a registered agent. Must maintain a registered agent with a street address in Alabama. You can serve as your own agent if you have a qualifying address; paid services usually charge a yearly fee.