What an LLC Costs in Alabama
The Alabama LLC filing fee, the annual report fee, any state franchise or minimum tax, and other required costs, from the official state sources.
Short answer: 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
| 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. |
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| 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. 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. |
| 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. 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. |
Where to get help in Alabama
More Alabama starting an llc & small business
- LLC Annual Report in Alabama
- Registering a DBA (Assumed Name) in Alabama
- All Alabama starting an llc & small business rules
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.
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).
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.