Forming an LLC in Alabama
It costs $200 to form an LLC in Alabama. This payment is made to the Alabama Secretary of State to officially recognize your business. Before doing business in Alabama, you need to obtain the necessary business licenses to operate in a specific city. The cost of local business permits varies.
Annual Costs for Alabama LLCs
All Alabama LLCs need to pay $50 per year for the Annual Report and Alabama Business Privilege Tax to the Department of Revenue. This is the only state-required annual fee to keep your LLC in good standing. If you hired a Registered Agent service, you’ll have an annual subscription fee to pay each year of about $125.
On an annual basis, all Alabama LLCs must pay a business privilege license and the corresponding tax. The minimum fee for this tax is $100. The cost of the license depends upon the county.
If you have decided to form an LLC in another state and conduct business within Alabama, then your company must register as a Foreign LLC in Alabama. This is also known as “Foreign Qualifying”. Registering a Foreign LLC in Alabama will cost $150 for all legal paperwork necessary for filing. Forming an LLC exclusively inside Alabama is considered a Domestic LLC.
You must reserve your LLC business name in Alabama by filing an LLC name reservation for $25.
Steps to Form an LLC
To form an LLC you must:
- Choose a Name
- File Certificate of Formation
The filing fee to form an Alabama LLC online is $208. Some fees only need payment once, while others are ongoing annual charges:
- Permits and licenses vary based on industry, location, and type of business
- Alabama Business Privilege Tax and Annual Report (minimum $100)
- Registered Agent service ($125/year)
It normally takes 7-10 business days for an LLC to be approved in Alabama, though one business day processing is available for an additional fee. Anyone can act as an Alabama registered agent, provided they are an adult and available at a specified in-state address during business hours.