Step 1: Choose a name Alabama will accept
The name has to end with “Limited Liability Company”, “L.L.C.” or “LLC”. It also has to differ from the names already on the Alabama Secretary of State's records, and some words need another agency's approval. Check an LLC name in Alabama against those rules and the registered names we hold, then confirm it on the official search.
Alabama requires a name reservation before the Certificate of Formation: $28 online ($25 by mail), for 1 year. See how to reserve an LLC name.
Step 2: Appoint a registered agent
The Certificate of Formation names a registered agent: a person or company with a street address in Alabama who receives lawsuits and official notices for the LLC during business hours. You can usually serve yourself if you live in the state, or pay a commercial agent a yearly fee.
Our sister site lists the registered agents Alabama companies use most, with how many companies each one serves.
Step 3: File the Certificate of Formation
File it with the Alabama Secretary of State. The fee is $200. File online, or on paper. The LLC exists once the state accepts the filing.
Step 4: Write an operating agreement
Alabama doesn't require one (Ala. Code § 10A-5A-1.08(a)), but without it the state's default rules decide how the LLC is run and how profits and votes are shared. It stays in the company's records; it isn't filed.
Make a free Alabama LLC operating agreement and download it as a Word file.
Step 5: Get an EIN
An EIN (employer identification number) is the LLC's federal tax ID: banks ask for it to open a business account, and the LLC needs one to hire. The IRS issues it free; apply online at irs.gov once Alabama has accepted the Certificate of Formation.
Step 6: File the Alabama LLC annual report
Fee: No separate SOS annual report for LLCs. LLCs file Alabama Business Privilege Tax Return and Annual Report for pass-through entities (Form PPT) with the Alabama Department of Revenue. (The $10 annual report fee in the SOS fee schedule applies to corporations.) Due: Form PPT is due on the same date as the corresponding federal income tax return; new entities file Form BPT-IN within 2.5 months after organizing (no extension). (Source: Alabama business privilege tax and corporate share tax, revenue.alabama.gov.)
| After formation | Alabama |
|---|---|
| Recurring report | Business privilege tax return each year (no separate report) |
| State tax or fee on LLCs | Business privilege tax based on net worth (no return needed if $100 or less) |
| Proof of good standing | Certificate of Existence, $27.75 online ($25 by mail) |
Missing the recurring filing is the most common way an LLC loses its good standing, and in time its existence. On our sister site, look up an LLC's status or see how to get a Alabama certificate of good standing.
What it costs to start an LLC in Alabama
| State fee | Amount |
|---|---|
| Formation filing | $200 |
| First year, state fees | $200 |
| Each year after (business privilege tax: none due when the tax comes to $100 or less) | $0 |
Over five years, Alabama's state fees come to $200. These are state fees only: a commercial registered agent, a publication notice and income taxes are extra. Compare every state's fees, with the options to reserve the name or file faster.
Sources
Llcs, sos.alabama.gov, checked 2026-10-07
Business entity records, sos.alabama.gov, checked 2026-10-07
Fee schedule (PDF), sos.alabama.gov, checked 2026-10-07
Domestic entity name reservation (PDF), sos.alabama.gov, checked 2026-10-07
Name reservation renewal (PDF), sos.alabama.gov, checked 2026-10-07
Certificateof existence (PDF), sos.alabama.gov, checked 2026-10-07
Trademarks, sos.alabama.gov, checked 2026-10-08
Domestic business entities brochure 2022 (PDF), sos.alabama.gov, checked 2026-10-07
Alabama business privilege tax and corporate share tax, revenue.alabama.gov, checked 2026-10-07
Name Reservation Menu, alabamainteractive.org, checked 2026-10-09
SOS Online Services, alabamainteractive.org, checked 2026-10-09
Apply for an EIN online, irs.gov
How to start an LLC in Alabama
- Choose a name Alabama will accept and check it against the Alabama Secretary of State's records.
- Appoint a registered agent with a street address in Alabama.
- File the Certificate of Formation with the Alabama Secretary of State ($200).
- Write an operating agreement.
- Get a free EIN from the IRS.
- Keep up with the recurring filings and fees.
Common questions
How much does it cost to start an LLC in Alabama?
$200 to file the Certificate of Formation. The state's fees come to $200 in the first year and nothing in later years (business privilege tax: none due when the tax comes to $100 or less); a registered agent service or a newspaper notice costs extra.
How long does it take to start an LLC in Alabama?
The Alabama Secretary of State doesn't publish a processing time; its site shows how to file and check on a filing.
Do I need an operating agreement in Alabama?
Alabama doesn't require one (Ala. Code § 10A-5A-1.08(a)), but it's the document that says who owns the LLC and how it's run; banks and partners often ask for it.
Can I start an LLC in Alabama online?
Yes. The Alabama Secretary of State takes the Certificate of Formation online, for $200.
When is the Alabama LLC annual report due?
Form PPT is due on the same date as the corresponding federal income tax return; new entities file Form BPT-IN within 2.5 months after organizing (no extension).
Does Alabama require an annual report for LLCs?
Yes. Alabama's recurring filing: Business privilege tax return each year (no separate report).