FormByStateState guide
How to form an LLC in Alabama
The steps
Step 1: Choose a name
Pick a company name and confirm it is available in Alabama. The name search sits with Alabama Secretary of State, Business Entity Records. Keep the name distinct from companies already on the state register.
Step 2: Appoint a registered agent
An individual resident of the state or an entity authorized to transact business in the state. Decide now whether that will be you or a commercial service, because the filing asks for the agent name and address.
Step 3: File the Certificate of Formation
File with Alabama Secretary of State, Business Entity Records and pay the state formation fee of $200. This filing is what creates the LLC.
Step 4: Write an operating agreement
An operating agreement records who owns the company, who runs it, and what happens if an owner leaves. It is an internal document in most states, but banks and partners ask for it.
Step 5: Get a tax ID number and set your calendar
Apply to the Internal Revenue Service for an employer identification number at no charge, open a company bank account, and record the No annual report required deadline from this page so the first report is never a surprise.
State fees
| Charge | Amount |
|---|---|
| Formation fee, Certificate of Formation | $200 |
| No annual report required, no recurring cycle | $0 |
| Annual state fee | None, $0 |
| Paid to the state, year one | $200 |
| Paid to the state, every year after | $0 |
Registered agent rules in Alabama
Who may serve: An individual resident of the state or an entity authorized to transact business in the state.
A physical street address in the state is required.
A post office box alone is not enough. Registered agent must have a physical street address in Alabama. A separate name reservation is required before filing and costs extra. LLCs have no Secretary of State annual report since 2024. A separate Business Privilege Tax return to the Department of Revenue may apply, and it is fully exempt when the computed tax is $100 or less.
Not sure which route fits you? Run the registered agent checker for Alabama.
Reports and deadlines
Report: No annual report required. Fee: $0 each filing, no recurring cycle.
Rule: No recurring report is required for LLCs in this state. Exact dates depend on your formation date. The compliance calendar for Alabama turns the rule into dates from your formation date.
What you pay the state every year after
You pay the state $0 every year after year one in Alabama, counting the report fee spread across its filing cycle and any annual state fee. The formation fee itself is paid once, in year one. A formation service company and a commercial agent add their own charges on top of that floor. The formation service chart below adds each service route to these state fees.
What it costs to hand it over to a formation service company in Alabama
Do not want the headache of filing all the paperwork yourself, or the worry of missing a deadline and falling out of good standing? No problem. Plenty of formation service companies are willing to take the whole burden off your hands. They file the form with the state, act as your registered agent, and remind you before every yearly filing comes due. This chart prices each one in Alabama, with the state fees already added in, so you can see the full cost of handing it over.
| Formation service company | Plan | Registered agent | State filing fees, first year | State fees, every year after | Total, first year | Total, every year after |
|---|---|---|---|---|---|---|
| Bizee | Basic, $0 | $0 in year one, then $149 a year | $200 | $0 | $200 | $149 |
| Northwest Registered Agent (our pick) | LLC formation, $39 | $0 in year one, then $125 a year | $200 | $0 | $239 | $125 |
| ZenBusiness | Starter, $0 | $199 a year | $200 | $0 | $399 | $199 |
| Tailor Brands | Lite, $0 | $199 a year | $200 | $0 | $399 | $199 |
| LegalZoom | Basic, $0 | $249 a year | $200 | $0 | $449 | $249 |
The plan price is printed with the plan name. The agent column is what that formation service company charges to act as your registered agent. In Alabama, the state column is the Certificate of Formation fee. Each total adds the state column for that year, the plan price, and the agent charge for that year. No add ons are included. Extras like an operating agreement cost more.
Frequently asked questions
How much does it cost to form an LLC in Alabama?
The state filing fee in Alabama is $200 for the Certificate of Formation. What you pay the state in year one comes to $200, counting any report fee due in year one and any annual state fee. A formation service company and a commercial agent add their own charges on top.
How much does an LLC in Alabama cost each year?
The recurring state charges in Alabama are: No recurring state fee. After year one, you pay the state $0 a year.
Do I need a registered agent in Alabama?
Yes. An individual resident of the state or an entity authorized to transact business in the state. Registered agent must have a physical street address in Alabama. A separate name reservation is required before filing and costs extra. LLCs have no Secretary of State annual report since 2024. A separate Business Privilege Tax return to the Department of Revenue may apply, and it is fully exempt when the computed tax is $100 or less.
When is the No annual report required due in Alabama?
No recurring report is required for LLCs in this state The fee is $0 each filing.
Source: Alabama Secretary of State, Business Entity Records, https://www.sos.alabama.gov/business-entities. State information checked on 2026-10-25. Service prices on this site were checked on merchant pricing pages on October 25, 2026.