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How to Start an LLC in Alabama: Fees, Filings and Annual Requirements

Forming an LLC in Alabama: the state filing fee, how to file, name rules, registered agent, annual report, state taxes, DBA and sales tax permit — from the official state sources.

Quick answers for Alabama

LLC filing fee
The Secretary of State fee for a domestic LLC Certificate of Formation is $200.00. The Secretary of State then pays $100.00 of that to the county treasurer for the county where the initial registered agent's office is located. Ala. Code § 10A-1-4.31; Alabama Secretary of State Fee Schedule; Domestic LLC Certificate of Formation form
Annual report
The Secretary of State's fee schedule lists a $10.00 annual report (collected by the Department of Revenue) only for corporations; it does not list an annual report for LLCs. Alabama Secretary of State Fee Schedule; Alabama Department of Revenue, 2026 Form PPT Instructions (Act 2017-363)
State franchise or minimum tax
Alabama charges a Business Privilege Tax on corporations and limited liability entities (including disregarded entities) for the privilege of being organized in, or doing business in, Alabama. Ala. Code Title 40, Chapter 14A; Alabama Department of Revenue, Business Privilege Tax Incentives page and 2026 Form PPT Instructions
How to file
File a Domestic Limited Liability Company Certificate of Formation with the Secretary of State's Business Services Division. Ala. Code § 10A-5A-2.01; Alabama Secretary of State, Domestic LLC Certificate of Formation form

Last verified: 2026-10-27

Forming the LLC

LLC filing feeThe Secretary of State fee for a domestic LLC Certificate of Formation is $200.00. The Secretary of State then pays $100.00 of that to the county treasurer for the county where the initial registered agent's office is located.
Source: Ala. Code § 10A-1-4.31; Alabama Secretary of State Fee Schedule; Domestic LLC Certificate of Formation form
How to fileFile a Domestic Limited Liability Company Certificate of Formation with the Secretary of State's Business Services Division. It can be filed online, or by mailing two copies of the typed form with the fee and a self-addressed, stamped envelope to Secretary of State, Business Services, P.O. Box 5616, Montgomery, Alabama 36103. Forms are not accepted by email. A copy of the Name Reservation Certificate must be attached. The filing is effective when received, or on a delayed date chosen in the filing (no later than the 90th day after signing).
The Secretary of State's pages reviewed do not state a typical processing time.
Source: Ala. Code § 10A-5A-2.01; Alabama Secretary of State, Domestic LLC Certificate of Formation form
Name rules and reservationThe name must contain the words "Limited Liability Company" or the abbreviation "L.L.C." or "LLC" (a professional LLC may use "Professional" or PLLC). Alabama requires you to obtain a Certificate of Name Reservation before filing the formation document. The name reservation processing fee is $25.00, and reservations can be requested online or by mail.
The Secretary of State pages reviewed did not state how long a name reservation lasts.
Source: Ala. Code §§ 10A-1-5.06, 10A-1-4.02(f), 10A-1-5.11; Alabama Secretary of State LLC page and Name Reservation Request Form
Registered agentThe Certificate of Formation must name one registered agent and a registered office with a street address in Alabama (no P.O. boxes). An entity changes its registered agent or registered office by filing a Change of Registered Agent or Registered Office by Entity statement; the processing fee is $100.00.
Source: Ala. Code § 10A-1-5.32; Alabama Secretary of State Certificate of Formation form, Change of Registered Agent form, and Fee Schedule

Keeping the LLC in good standing

Annual reportThe Secretary of State's fee schedule lists a $10.00 annual report (collected by the Department of Revenue) only for corporations; it does not list an annual report for LLCs. Instead, LLCs doing business in Alabama file the Business Privilege Tax return with the Alabama Department of Revenue (see state taxes). For pass-through entities, that return's due date matches the due date of the entity's federal income tax return, and the tax is due by the original due date.
Source: Alabama Secretary of State Fee Schedule; Alabama Department of Revenue, 2026 Form PPT Instructions (Act 2017-363)
State franchise or minimum taxAlabama charges a Business Privilege Tax on corporations and limited liability entities (including disregarded entities) for the privilege of being organized in, or doing business in, Alabama. It is based on net worth apportioned to Alabama, at rates from $0.25 to $1.75 per $1,000, with a maximum of $15,000 for most entities. LLCs taxed as partnerships or disregarded entities file Form PPT; LLCs taxed as corporations file Form CPT. The 2026 Form PPT instructions say a return is required if the privilege tax due calculates to more than one hundred dollars ($100).
The Department of Revenue's Business Privilege Tax Incentives page states "The minimum business privilege tax is $50," while the 2026 instructions require a return only when the tax calculates to more than $100. Check with the Department of Revenue for how these apply to your LLC.
Source: Ala. Code Title 40, Chapter 14A; Alabama Department of Revenue, Business Privilege Tax Incentives page and 2026 Form PPT Instructions
Sales tax permitA sales tax license (account) is obtained by registering the business with the Alabama Department of Revenue online through the My Alabama Taxes (MAT) portal. The Department says its online Business Tax Registration System is provided at no charge, and that it takes 3–5 days to receive an account number after registering online. Local sales taxes may require separate registration with cities or counties the Department does not administer.
Source: Alabama Department of Revenue, Business Tax Online Registration System and Sales Tax FAQ
DBA / assumed nameAlabama's Secretary of State registers trade names (names used to identify a business), along with trademarks and service marks, by application with three specimens and a fee. Registrations last five years and can be renewed. The fee schedule lists $30.00 for registration or renewal.
The Secretary of State notes that a rejected registration does not prevent use of a name; ownership rights come from common-law use.
Source: Ala. Code §§ 8-12-8, 8-12-10; Alabama Secretary of State Trademarks page and Fee Schedule

Out-of-state LLCs and closing

Registering an out-of-state LLCAn out-of-state LLC files a Foreign Limited Liability Company Application for Registration with the Secretary of State. The filing fee is $150.00 (online or by mail, two original copies). A Certificate of Name Reservation is required first. The fee schedule lists a late filing penalty of $150.00 per year.
Source: Ala. Code §§ 10A-1-4.31, 10A-1-5.11; Alabama Secretary of State LLC page and Fee Schedule
Closing an LLCFile Articles of Dissolution for a domestic LLC with the Secretary of State. The processing fee is $100.00. It can be filed online or by mail; it is not accepted by email.
Source: Ala. Code §§ 10A-5A-7.02(b), 10A-1-4.31; Alabama Secretary of State Articles of Dissolution form and Fee Schedule

Where to get help in Alabama

Starting an LLC & Small Business FAQ

How much does it cost to form an LLC in Alabama?
The Secretary of State fee for a domestic LLC Certificate of Formation is $200.00. The Secretary of State then pays $100.00 of that to the county treasurer for the county where the initial registered agent's office is located.
How do you form an LLC in Alabama?
File a Domestic Limited Liability Company Certificate of Formation with the Secretary of State's Business Services Division. It can be filed online, or by mailing two copies of the typed form with the fee and a self-addressed, stamped envelope to Secretary of State, Business Services, P.O. Box 5616, Montgomery, Alabama 36103. Forms are not accepted by email. A copy of the Name Reservation Certificate must be attached. The filing is effective when received, or on a delayed date chosen in the filing (no later than the 90th day after signing).
What are the LLC name requirements in Alabama?
The name must contain the words "Limited Liability Company" or the abbreviation "L.L.C." or "LLC" (a professional LLC may use "Professional" or PLLC). Alabama requires you to obtain a Certificate of Name Reservation before filing the formation document. The name reservation processing fee is $25.00, and reservations can be requested online or by mail.
Do you need a registered agent for an LLC in Alabama?
The Certificate of Formation must name one registered agent and a registered office with a street address in Alabama (no P.O. boxes). An entity changes its registered agent or registered office by filing a Change of Registered Agent or Registered Office by Entity statement; the processing fee is $100.00.
Does an LLC have to file an annual report in Alabama?
The Secretary of State's fee schedule lists a $10.00 annual report (collected by the Department of Revenue) only for corporations; it does not list an annual report for LLCs. Instead, LLCs doing business in Alabama file the Business Privilege Tax return with the Alabama Department of Revenue (see state taxes). For pass-through entities, that return's due date matches the due date of the entity's federal income tax return, and the tax is due by the original due date.
What state taxes does an LLC pay in Alabama?
Alabama charges a Business Privilege Tax on corporations and limited liability entities (including disregarded entities) for the privilege of being organized in, or doing business in, Alabama. It is based on net worth apportioned to Alabama, at rates from $0.25 to $1.75 per $1,000, with a maximum of $15,000 for most entities. LLCs taxed as partnerships or disregarded entities file Form PPT; LLCs taxed as corporations file Form CPT. The 2026 Form PPT instructions say a return is required if the privilege tax due calculates to more than one hundred dollars ($100).
How do you register a DBA in Alabama?
Alabama's Secretary of State registers trade names (names used to identify a business), along with trademarks and service marks, by application with three specimens and a fee. Registrations last five years and can be renewed. The fee schedule lists $30.00 for registration or renewal.
How do you get a sales tax permit in Alabama?
A sales tax license (account) is obtained by registering the business with the Alabama Department of Revenue online through the My Alabama Taxes (MAT) portal. The Department says its online Business Tax Registration System is provided at no charge, and that it takes 3–5 days to receive an account number after registering online. Local sales taxes may require separate registration with cities or counties the Department does not administer.
How do you register a foreign LLC in Alabama?
An out-of-state LLC files a Foreign Limited Liability Company Application for Registration with the Secretary of State. The filing fee is $150.00 (online or by mail, two original copies). A Certificate of Name Reservation is required first. The fee schedule lists a late filing penalty of $150.00 per year.
How do you dissolve an LLC in Alabama?
File Articles of Dissolution for a domestic LLC with the Secretary of State. The processing fee is $100.00. It can be filed online or by mail; it is not accepted by email.

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More Alabama law

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.