From registering a business to seeking funding and applying for grants, this guide has everything you need to start a business in Alabama. With the 3rd-lowest tax burden and the 7th-lowest cost of labor in the nation, Alabama is a great choice for entrepreneurs. Learn the steps to start a business in Alabama. Discover local regulations, funding opportunities, and resources.
Business Structures and Requirements
General Partnerships consist of two or more people conducting a business together. There is no formal state filing, and the partnership has unlimited liability. If the partnership were to be sued, the partner’s personal assets would be at risk.
To determine licenses and permits for your business, seek guidance from an attorney or accountant. This guide walks you through everything from forming your business to developing a marketing strategy.
Licenses and Taxes
In Alabama, all businesses are required to file for a general business license, which is issued by cities and municipalities. If you plan on operating in multiple cities, you will need a business license for each.
According to the Alabama Department of Revenue, businesses needing a Sales Tax License include retailers, service providers, and wholesalers.
Start-up Costs
How Much Does It Cost?
- Certificate of Formation: $177 minimum. Includes a probate judge fee.
- Business name reservation: $25.
- Registered Agent service annual fee: about $125.
- LLC formation with the Alabama Secretary of State: $200, plus a separate Probate Court filing fee of at least $50.
- State business license: can range from $15 to several hundred dollars, depending on the type.
Alabama’s cost of living and pro-business strategy contribute to a supportive environment for businesses. However, it’s essential to budget for various expenses associated with starting and maintaining a business in the state.