Form an LLC in Alabama
Form your Alabama LLC the right way – CountSure handles the mandatory name reservation, the $200 Certificate of Formation, and the Business Privilege Tax setup. Streamlined since Alabama retired its annual report in 2024.
Requirements, costs & steps for an Alabama LLC
Setting up a limited liability company in Alabama is refreshingly streamlined since the state retired its Secretary of State annual report in late 2024. You still get the core benefits an LLC is known for – personal asset protection and pass-through taxation with one Alabama quirk to plan for: a mandatory name reservation before you can file. This guide lays out the real costs, the filing sequence, and the one recurring obligation that trips owners up. Prefer to delegate it? Our Alabama LLC formation service takes care of the whole filing.
What you need to know?
Filing fee:
$200 for the Certificate of Formation, filed with the Alabama Secretary of State.
Name reservation:
Mandatory before filing - about $28 online / $25 by mail. Alabama is one of the few states that requires this.200 for the Certificate of Formation, filed with the Alabama Secretary of State.
No SOS annual report:
Eliminated October 1, 2024 (Act 2024-213). Don’t waste time hunting for it.
Registered agent:
Required - must have a physical Alabama street address.
Business Privilege Tax:
Filed with the Department of Revenue; $50 minimum, but $0 owed and no filing required if your tax is $100 or less
Alabama LLC at a glance
The essentials for forming and maintaining an Alabama LLC.
| Requirement | Detail (2026) |
|---|---|
| Formation document | Certificate of Formation |
| Filing agency | Alabama Secretary of State |
| State filing fee | $200 |
| Name reservation | Mandatory; ~$28 online / $25 mail |
| Typical processing time | ~1 business day online; longer by mail |
| Registered agent | Required; physical Alabama address |
| SOS annual report | None (eliminated Oct 1, 2024) |
| Initial Business Privilege Tax | Form BPT-IN, within 2.5 months of formation |
| Annual Business Privilege Tax | Form PPT; $50 min ($0 if tax ≤ $100) |
| Tax agency | Alabama Department of Revenue (ALDOR) |
How to form an Alabama LLC, Step by Step
Reserve your LLC name (required first step)
Unlike most states, Alabama makes you obtain a Certificate of Name Reservation before you can file. Your name must include “LLC,” “L.L.C.,” or “Limited Liability Company,” and be distinguishable from existing Alabama entities. Reserve it online for roughly $28 it’s usually available within a day.
Appoint a registered agent
Choose an individual Alabama resident or a registered agent service with a physical in-state address available during business hours. CountSure can serve as your registered agent.
File your Certificate of Formation
Submit it (with your Certificate of Name Reservation) to the Secretary of State and pay the $200 fee. Online filing is fastest.
Write an operating agreement
Not filed with the state, but strongly recommended – it sets out ownership, profit splits, and management, and helps preserve your liability shield.
Get your EIN from the IRS
File the Initial Business Privilege Tax Return (Form BPT-IN)
Due within 2.5 months of formation, filed with the Department of Revenue.
Handle local business licenses
Most Alabama businesses need a county and/or municipal business license; some industries need additional permits.
Naming & Member Requirements
Two things determine whether your filing clears on the first try: a compliant, reserved name and a clear management structure. Here’s what Alabama requires.
- Required ending: “Limited Liability Company,” “L.L.C.,” or “LLC.”
- Mandatory reservation: You must hold a Certificate of Name Reservation before filing - an Alabama-specific rule.
- Restricted words: Terms implying banking, insurance, or similar regulated activity generally need approval.
- Minimum members: One - Alabama allows single-member LLCs. No residency or age requirement.
- Management: Member-managed or manager-managed; you indicate this in your Certificate of Formation.
Ongoing Alabama LLC Compliance & Taxes
No Secretary of State annual report
Business Privilege Tax (your main recurring filing)
Deadlines
EIN and State tax accounts
Alabama LLC Cost Breakdown
What you’ll actually pay in year one and beyond.
| Requirement | Cost (2026) · paid to |
|---|---|
| Name reservation (mandatory) | ~$28 online / $25 mail · Secretary of State |
| Certificate of Formation | $200 · Secretary of State (one-time) |
| Initial Business Privilege Tax | $50 min ($0 if ≤ $100) · Dept. of Revenue, within 2.5 mo. |
| Annual Business Privilege Tax | $50 min ($0 if ≤ $100) · Dept. of Revenue, yearly |
| SOS annual report | $0 · eliminated Oct 2024 |
| Registered agent (optional) | Varies · CountSure / third party |
| EIN | $0 · IRS (free) |
Insight From Our Team
“Alabama is one of the easier states to stay compliant in now that the annual report is gone but the Business Privilege Tax still catches people, because they assume ‘no annual report’ means ‘nothing to file.’ The good news is the $100-or-less exemption means a lot of brand-new LLCs owe nothing in year one. We confirm each client’s net-worth position before the initial BPT deadline so nobody files or pays when they don’t have to.”
Parth Shah
CountSure
Related Guides & Services
- LLC vs. Corporation: which is right for you?
- All state formation guides
Frequently Asked Questions
Online filings are often approved within about a business day mail filings take noticeably longer.
Yes. You must have a registered agent with a physical Alabama address. You can serve as your own, but many owners use a service for privacy and reliability.
Get Started
Start your Alabama LLC with CountSure
From the mandatory name reservation to your Certificate of Formation, EIN, and Business Privilege Tax setup, CountSure handles your Alabama LLC end to end.
- Free 30-minute consultation with a CPA
- Fixed-fee, fully transparent pricing
- 100% remote - no travel or visa required
