Alabama LLC Formation

Form Your Alabama LLC

Start your business in the Heart of Dixie with low costs, business-friendly regulations, and strategic Southeast access

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Alabama state flag

Filed in Alabama

Heart of Dixie · AL

Available
  • State filing fee$200
  • Processing time3-5 business days online
  • Our formation feeFree (you pay $100 if you choose a paid plan)
  • Annual report$0 for most LLCs (BPT min waived) — due March 15 annually (Form PPT)
  • State tax rate6.5% corporate income tax
  • Expedited option24-48 hours (+$100)
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Form your Alabama LLC — pay only the state filing fee, nothing more.

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What's included

Everything to launch your Alabama LLC

Free formation means you pay only the $200 state filing fee. All core services are included at no extra charge.

Certificate of Formation filing

We prepare and submit your Certificate of Formation to the Alabama Secretary of State.

Registered agent

Required in Alabama — we act as your agent for the first year.

EIN from the IRS

Your federal Tax ID — required to open a US business bank account and file taxes.

Operating agreement

Professionally drafted operating agreement — defines ownership, voting, and profit splits.

Why Alabama?

Benefits of forming an LLC in Alabama

Alabama offers a favorable business climate with competitive costs, a strategic Southeast location, and strong incentive programs for new businesses. The state has invested heavily in aerospace, automotive, and technology sectors.

Low annual compliance costs compared to many states

Business-friendly regulatory environment with streamlined processes

Strategic Southeast location ideal for distribution and logistics

Growing economy with diverse industries including aerospace and automotive

Pass-through taxation avoids entity-level double taxation (note: Alabama does levy a personal income tax, top rate 5%, on resident members' pass-through income)

Access to major ports and transportation infrastructure

Key features of a Alabama LLC

  • Simple and straightforward formation process
  • Flexible management structure (member-managed or manager-managed)
  • Full limited liability protection for members
  • Pass-through taxation available to avoid double taxation

Major industries in Alabama

ManufacturingAerospace & DefenseAutomotiveHealthcareAgricultureTechnology
How it works

Form your Alabama LLC in 6 steps

We handle every step while you stay in the loop. Processing takes 3-5 business days online.

  1. 01

    Choose Your LLC Name

    Your name must include 'Limited Liability Company' or abbreviations like 'LLC' or 'L.L.C.' Check availability through the Alabama Secretary of State's business name search tool.

  2. 02

    Appoint a Registered Agent

    Alabama requires every LLC to have a registered agent with a physical street address in the state. This agent receives legal documents and official correspondence on behalf of your LLC.

  3. 03

    File Certificate of Formation

    Submit your Certificate of Formation (Form BET) to the Alabama Secretary of State. The filing fee is $200. You can file online or by mail.

  4. 04

    Create an Operating Agreement

    While not legally required in Alabama, an Operating Agreement is strongly recommended. It outlines ownership structure, member responsibilities, and how your LLC will be managed.

  5. 05

    Get an EIN (Employer Identification Number)

    Apply for a free EIN from the IRS. You will need this to open a business bank account, hire employees, and file taxes.

  6. 06

    File Business Privilege Tax Return

    Alabama LLCs file a Business Privilege Tax return (Form PPT), due March 15th for calendar-year filers. The minimum tax was fully exempted for tax due of $100 or less for years beginning after Dec 31, 2023, so most LLCs owe $0.

Costs & filing details

Alabama LLC costs at a glance

Kicker formation is free — you pay only the required state fees. No hidden charges.

ItemAmount / Detail
State filing fee$200
Kicker formation feeFree (paid plan from $100)
Processing time3-5 business days online
Annual report$0 for most LLCs (BPT min waived) — due March 15 annually (Form PPT)
Franchise taxBusiness Privilege Tax applies
State tax rate6.5% corporate income tax
EIN (federal Tax ID)Free from IRS
Expedited filing24-48 hours (+$100)
Requirements

Alabama LLC requirements checklist

Everything you need to form and maintain a Alabama LLC in 2026.

Formation checklist
  • File Certificate of Formation with Alabama Secretary of State
  • Appoint a registered agent with a physical Alabama address
  • Create an Operating Agreement (strongly recommended)
  • Obtain an EIN from the IRS
  • File Business Privilege Tax return (Form PPT) by March 15th
  • Obtain necessary local business licenses and permits

Filing information

Formation document
Certificate of Formation
Filing agency
Alabama Secretary of State
Registered agent
Required
Operating agreement
Recommended
EIN
Required
Name reservation fee
$28 (120 days)
Pricing

Free formation — pay only the state fee

Kicker formation is free. You pay the $200 Alabama state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, operating agreement, and compliance.

Starter

$0
+ $200 state fee
  • Certificate of Formation filing
  • Name availability check
  • Digital document delivery
  • Formation status tracking
Start free

Booster

$100
+ $200 state fee
  • Everything in Starter
  • Registered agent (required in Alabama)
  • EIN / Federal Tax ID
  • Expedited processing (1–2 days)
  • Operating agreement
  • Priority support
  • Kicker Voice — 3-day free trial
  • Kicker Pay — free for 15 days
Start Booster

Founder

$150
+ $200 state fee
  • Everything in Booster
  • Business mailing address
  • Bookkeeping — 3 months free
  • Dedicated account manager
  • Rush processing
  • Kicker Voice — 6-day free trial
  • Kicker Pay — free for 30 days
Go Founder
Most popular

Kicker

$230
+ $200 state fee
  • Everything in Founder
  • ITIN filing & preparation
  • Same-day priority processing
  • 2nd year annual filing $0
  • Kicker Voice 12-day + Kicker Pay 60 days free
Get Kicker
100% accuracy guaranteeOn-time filing promise30-day money back

Compare all plans on our pricing page.

FAQ

Alabama LLC questions, answered

Common questions about forming an LLC in Alabama. Can't find an answer? Talk to our team.

How much does it cost to form an LLC in Alabama?

The state filing fee for an Alabama LLC is $200. You will also need to budget for a registered agent (if using a service). The Business Privilege Tax minimum was fully exempted for tax due of $100 or less (effective for years beginning after Dec 31, 2023), so most LLCs owe $0. Our formation service fee starts at $100 plus the state fee.

How long does it take to form an LLC in Alabama?

Standard processing takes 3-5 business days online. Expedited processing is available for an additional $100, which reduces the timeline to 24-48 hours.

Do I need an Operating Agreement for my Alabama LLC?

Alabama does not legally require an Operating Agreement, but having one is strongly recommended. It protects your limited liability status and clearly defines the rights and responsibilities of all members.

What is the Business Privilege Tax in Alabama?

Alabama LLCs file a Business Privilege Tax return (Form PPT) by March 15th for calendar-year filers. The minimum tax was fully exempted for tax due of $100 or less (effective for years beginning after Dec 31, 2023), so most LLCs owe $0. The tax is calculated based on your LLC's net worth apportioned to Alabama.

Can I be my own registered agent in Alabama?

Yes, you can serve as your own registered agent in Alabama as long as you have a physical street address (not a P.O. Box) in the state and are available during business hours to receive legal documents.

Does Alabama have state income tax for LLCs?

Single-member LLCs are treated as pass-through entities and report income on the owner's personal tax return. Alabama has a personal income tax rate of 2% to 5%. Multi-member LLCs may need to file a partnership return.

Official resources

Alabama government filing resources

Filing fees for common LLC services

Official Alabama state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.

Name reservation$25

$25.00 by paper form / $28.00 online (immediate).

Certificate of good standing$25

Alabama's good-standing equivalent is the Certificate of Existence, issued by the Secretary of State.

Learn more
Certified copy$10

A certified copy = $10.00 Certification of Documents fee PLUS $2.00 per page (Copies of Documents).

Apostille / authentication$5

Authentication/Certification (apostille) is $5.00 per document under Ala.

Foreign qualification$150

$150 Application for Registration (Ala.

Learn more
Resale / seller's permitNo fee

In Alabama the sales-tax permit / seller's permit is officially the 'Sales Tax License,' issued by the Alabama Department of Revenue (ALDOR), not the Secretary of State.

Learn more
Articles amendment$100

$100 Amendment to Formation/Organization.

Learn more
Change of registered agent$100

$100.00 processing fee (Ala.

Learn more
Reinstatement$100

$100.00 processing fee (Ala.

Learn more
Dissolution$100

$100 Articles of Dissolution.

Learn more

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Ready to form your Alabama LLC?

Formation is free — you pay only the $200 Alabama state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in 3-5 business days online.

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