How Much Does an LLC Cost in Alabama?

The Alabama Secretary of State charges $200 to file the Certificate of Formation. That figure excludes optional services and any variable taxes, which depend on your circumstances.

Alabama currently has no fixed recurring state fee that applies to every LLC — there is no annual report bill to budget for. You still need to keep a registered agent in place and stay current on any licenses or taxes that apply to your specific business. In addition, business Privilege Tax may apply depending on your revenue, assets, or activity — these are variable, so they aren't included in fixed totals.

Standard processing generally takes about 1–3 business days. Expedited options are available: expedited processing for $100. Processing times change with filing volume, so confirm current turnaround with the state before relying on a date.

Yes. Every Alabama LLC must continuously maintain a registered agent with a physical address in the state to receive legal and official mail. You can generally act as your own agent at no cost if you meet the state's eligibility rules, or hire a commercial service — typically $100–$300 per year. Whether serving as your own agent is practical depends on your circumstances, including privacy and availability during business hours.

For taxable years beginning after December 31, 2023, businesses whose calculated privilege tax is $100 or less are fully exempt and file no return — which covers most small businesses. Above that, the tax is based on net worth and federal taxable income apportioned to Alabama. Initial return due within 2.5 months of formation; annual returns thereafter. Because the amount depends on factors like revenue or assets, it is shown separately and never folded into the fixed totals above. Consult a qualified tax professional about how it may apply to you.