Form Your Alabama S Corporation
Incorporate in the Heart of Dixie, then elect S-corp status to unlock pass-through taxation and payroll-tax savings — with low ongoing compliance
Filed in Alabama
Heart of Dixie · AL
- 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 annual report; BPT min $50/yr — due No annual report; BPT due Mar 15
- State tax rate6.5% corporate income tax
- Expedited option24-48 hours (+$100)
Form your Alabama S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your Alabama S-Corp
Free formation means you pay only the $200 state filing fee. All core services are included at no extra charge.
Certificate of Incorporation filing
We prepare and submit your Certificate of Incorporation 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.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in Alabama
Alabama pairs a business-friendly Secretary of State filing process with low ongoing compliance — there is no annual report and the Business Privilege Tax minimum is just $50 per year — making it efficient to run an S corporation. Owners benefit from pass-through taxation and payroll-tax savings, though Alabama's 6.5% corporate income tax return and personal income tax (top rate 5%) on pass-through income still apply.
Pass-through taxation eliminates the corporation's entity-level double tax — profits flow straight to shareholders' personal returns
Self-employment and payroll tax savings: only your reasonable W-2 salary is subject to FICA, while distributions are not
Limited liability protection shields personal assets behind the Alabama corporation
Business-friendly Southeast location ideal for distribution, logistics, and port access
Growing economy with strength in aerospace, automotive, and advanced manufacturing
No Alabama annual report requirement keeps ongoing compliance lean
Enhanced credibility with banks, vendors, and investors as a formal Alabama corporation
Single layer of tax even with retained earnings paid out as distributions
Key features of a Alabama S-Corp
- Pass-through taxation that avoids the corporation's double tax
- Payroll-tax savings on distributions above a reasonable salary
- Full limited liability protection for shareholders
- Formed as an Alabama corporation, then elected as an S-corp via IRS Form 2553
- No annual report required by the Alabama Secretary of State
Major industries in Alabama
Form your Alabama S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes 3-5 business days online.
- 01
Name Your Alabama Corporation
Choose a name that includes a corporate designator such as 'Corporation', 'Incorporated', 'Company', or an abbreviation (Corp., Inc., Co.). Confirm availability through the Alabama Secretary of State business entity search before filing.
- 02
Appoint a Registered Agent
Alabama requires every corporation to maintain a registered agent with a physical street address in the state to receive legal documents and official correspondence during business hours.
- 03
File the Certificate of Incorporation
Submit your Certificate of Incorporation to the Alabama Secretary of State with the $200 state filing fee. Online filings are processed in 3-5 business days. This forms the underlying corporation — the S-corp itself is a separate IRS election.
- 04
Hold the Organizational Meeting and Issue Stock
Adopt bylaws, appoint directors and officers, and issue shares. S-corp eligibility requires a single class of stock and no more than 100 shareholders, all of whom must be U.S. citizens or residents.
- 05
Get an EIN and File IRS Form 2553
Obtain a free EIN from the IRS, then file Form 2553 to elect S corporation status. The election must be filed within 75 days of formation (generally by March 15 of the tax year) to take effect for the current year.
- 06
Set Up Payroll and Stay Compliant
Put each shareholder-employee on payroll at a reasonable W-2 salary, then file the Alabama Business Privilege Tax return (Form PPT) by March 15 and the annual Alabama corporate income tax return.
Alabama S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
Alabama S-Corp requirements checklist
Everything you need to form and maintain a Alabama S-Corp in 2026.
- File a Certificate of Incorporation with the Alabama Secretary of State ($200 fee)
- Appoint a registered agent with a physical Alabama street address
- Obtain an EIN from the IRS
- File IRS Form 2553 to elect S corporation status within 75 days of formation
- Meet S-corp eligibility: no more than 100 shareholders, U.S. citizens or residents only, one class of stock
- Pay each shareholder-employee a reasonable W-2 salary before taking distributions
- File the Alabama Business Privilege Tax return (Form PPT) and annual corporate income tax return
Filing information
- Formation document
- Certificate of Incorporation
- Filing agency
- Alabama Secretary of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $28 (120 days)
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, corporate bylaws, and compliance.
Starter
- Certificate of Incorporation filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in Alabama)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- 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
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
Alabama S-Corp questions, answered
Common questions about forming an S-Corp in Alabama. Can't find an answer? Talk to our team.
How do I form an S corporation in Alabama?
An S corporation is not a separate state filing — it is an IRS tax election. You first form a corporation by filing a Certificate of Incorporation with the Alabama Secretary of State ($200 fee), then file IRS Form 2553 to elect S-corp status. Online incorporations are processed in 3-5 business days.
How much does it cost to start an S corporation in Alabama?
The Alabama Secretary of State charges a $200 state fee to file the Certificate of Incorporation for the underlying corporation. Electing S-corp status with the IRS via Form 2553 is free. You may also budget for a registered agent and our formation service fee.
How long does it take to incorporate in Alabama?
Standard online processing through the Alabama Secretary of State takes 3-5 business days. After the corporation is formed, you file IRS Form 2553 separately to obtain S-corp tax treatment.
What is the deadline to file Form 2553 for S-corp status?
To have the S-corp election apply to the current tax year, file IRS Form 2553 within 75 days of forming your Alabama corporation — generally by March 15 for a calendar-year company. Missing the window typically pushes the election to the following tax year, though late-election relief may be available.
Who is eligible to be an S corporation in Alabama?
S-corp eligibility is set by the IRS, not Alabama. You may have no more than 100 shareholders, all of whom must be U.S. citizens or resident individuals — foreign owners are not eligible — and the corporation can issue only one class of stock.
How does an Alabama S corporation save on taxes?
An S corporation is a pass-through entity, so profits avoid the corporation's entity-level double tax and flow to shareholders' personal returns. By paying yourself a reasonable W-2 salary and taking the remainder as distributions, only the salary is subject to Social Security and Medicare taxes, which can reduce self-employment tax.
Does an Alabama S corporation pay state taxes?
Yes. Alabama recognizes the S election, but the company still files an Alabama income tax return and the Business Privilege Tax (Form PPT, minimum $50 per year, due March 15). Pass-through income is also subject to Alabama's personal income tax, with a top rate of 5%, on resident shareholders.
Does my Alabama S corporation need to file a BOI report?
Under FinCEN's March 2025 interim final rule, U.S. domestic entities and U.S. persons are exempt from Beneficial Ownership Information (BOI) reporting. A domestic Alabama corporation does not file a BOI report — only foreign-formed entities registered to do business in a U.S. state still report.
Alabama government filing resources
Filing fees for common S-Corp 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.
$25.00 by paper form / $28.00 online (immediate).
Alabama's good-standing equivalent is the Certificate of Existence, issued by the Secretary of State.
Learn moreA certified copy = $10.00 Certification of Documents fee PLUS $2.00 per page (Copies of Documents).
Authentication/Certification (apostille) is $5.00 per document under Ala.
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 moreIdentical to the C-corp: S-corp is a federal IRS tax election (Form 2553), NOT a separate Alabama state entity.
Learn moreEverything you need to run your Alabama S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your Alabama S-Corp?
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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