Costs and Procedures
To file an LLC in Alabama costs $200. Additional costs may include certificates and annual renewal fees. Filing online has a 4% fee.
It takes 6-8 weeks to incorporate in Alabama. Expedited filings take 4-5 weeks.
To form a 501(c)(3) nonprofit in Alabama:
- Name your organization
- Pay $200-$228 in fees
- File paperwork
You can incorporate outside your state of residence.
Required Fees and Taxes
All Alabama LLCs pay $50 per year for taxes and reports. Registered agent services cost about $125 per year. Alabama ranks low for cost of living.
The Secretary of State requires annual income reports from LLCs based on income passed through to members, with a $100 minimum fee. You must reserve your business name before operating an LLC.
To form an Alabama LLC, the costs are:
- $100 Certificate of Formation fee
- $50+ probate court fee
Reserve your business name, choose a name, pay fees, and file paperwork.
Corporate Requirements and Taxes
Alabama corporations are subject to a 6.5% income tax. The business privilege tax is graduated based on net worth, starting with a $100 minimum. To start a corporation:
- File articles of incorporation for $100
- Consult an attorney
- Ensure corporate names meet state requirements
Consider capital requirements, feasibility, and legal steps when starting a business in Alabama. Guidance is available.