To start an LLC in Alabama, reserve a business name with the Alabama Secretary of State, appoint a registered agent with an Alabama street address, file a Certificate of Formation, and then sort out your operating agreement, EIN, Business Privilege Tax and local licenses. The state’s minimum cost is $225 by mail ($25 name reservation plus the $200 formation fee) or $236 online, where Alabama Interactive charges $28 for the reservation and $208 for the formation filing (as of October 2026).
Alabama is one of the few states that requires a name reservation before you can form an LLC, so plan that step first. After formation there is no separate LLC annual report filed with the Secretary of State; the yearly obligation runs through the Alabama Department of Revenue instead.
Updated October 2026.
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Best LLC Formation Services in Alabama (2026)
Here are our top picks for forming an LLC in Alabama, ranked. Mainstay Filing comes first for its flat yearly price; the two Alabama registered agent services below it are options if you only need an agent.
| Rank | Provider | Best for | Price | What’s included |
|---|---|---|---|---|
| 1 | Mainstay Filing | Forming an LLC with the agent, EIN and annual report included | $199/year + state fee at cost | LLC formation filing, registered agent for the year, EIN application, annual report preparation and filing |
| 2 | AL Registered Agent.org | Alabama registered agent service only | $99/year | $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
| 3 | Alabama Registered Agent.co | Alabama registered agent service only | $99/year | in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online |
1. Mainstay Filing
Mainstay Filing is our top pick in Alabama. It costs $199/year + state fee at cost and covers lLC formation filing, registered agent for the year, EIN application, annual report preparation and filing. The price stays the same every year, with no add-on menu.
2. AL Registered Agent.org
AL Registered Agent.org is a Alabama registered agent service at $99/year. It provides $99 per year, flat; in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
3. Alabama Registered Agent.co
Alabama Registered Agent.co is a Alabama registered agent service at $99/year. It provides in-state street address for the registered office; legal documents served on the company are scanned and sent to the owner online. It’s a fit if you only need a registered agent rather than full formation help.
Alabama LLC at a glance
| Item | Alabama requirement (as of October 2026) |
|---|---|
| Filing office | Alabama Secretary of State, Business Entities Division |
| Formation document | Certificate of Formation (domestic LLC) |
| Filing fee | $200 by mail; $208 total when filed online through Alabama Interactive |
| Name reservation | Required before filing; $25, or $28 online |
| Annual obligation | Business Privilege Tax return with the Alabama Department of Revenue; no Secretary of State annual report for LLCs |
| Minimum privilege tax | $100; LLCs whose tax would be only the $100 minimum have no 2026 filing requirement |
| Registered agent | Required, with a street address in Alabama |
| Publication | Not required |
These figures come from the Secretary of State’s LLC page and online filing portal and the Department of Revenue’s 2026 privilege tax quick reference. Fees change, so confirm them on the official pages before you pay. For a cost breakdown that also includes service fees, see Mainstay Filing’s Alabama LLC cost page.
Step 1: Choose and reserve your Alabama LLC name
Your LLC name must include “Limited Liability Company” or the abbreviation “L.L.C.” or “LLC.” It also has to be distinguishable from names already on file, and adding a plural, a prefix or a different ending to an existing name usually does not make it distinguishable.
If you’re still brainstorming, the namechk business name generator can produce a long list of ideas from a few keywords. Then run each shortlisted name through the Secretary of State’s business entity records search. Our Alabama business name search guide walks through that database step by step.
Reserve the name (required in Alabama)
Most states treat name reservation as optional. Alabama does not: you need a Certificate of Name Reservation from the Secretary of State before the Certificate of Formation can be filed, and a copy goes in with your formation paperwork. The reservation costs $25, and the online version through Alabama Interactive comes to $28.
Check trademarks, domains and social handles
A clear state record doesn’t protect you from a federal trademark conflict. Search the USPTO trademark database before you print signs or order a logo. While you’re at it, check the matching .com and social media usernames in one pass with namechk’s username and domain checker, so your brand reads the same everywhere.
Step 2: Appoint an Alabama registered agent
Every Alabama LLC needs a registered agent: a person or company that accepts lawsuits, subpoenas and official state mail on the LLC’s behalf. The agent’s registered office must be a street address in Alabama; a P.O. box won’t be accepted on the Certificate of Formation.
You can be your own agent if you live in Alabama and are reliably available at that address during business hours. Many owners would rather not publish a home address in the public record, or they travel too much to guarantee someone is there. In that case, a commercial agent makes sense. Mainstay Filing includes a year of registered agent service in its formation package, and our guide to Alabama registered agents explains the requirements in more detail.
Step 3: File the Certificate of Formation
The Certificate of Formation is Alabama’s version of what other states call Articles of Organization. You can file online through Alabama Interactive or mail the Domestic LLC Certificate of Formation form to the Secretary of State with the original and one copy.
The form asks for:
- The LLC’s exact name, including the required designator
- The name of the registered agent and the street address of the registered office
- Your name reservation information
- Whether the LLC will be a series LLC or a professional LLC, if either applies
- The signature of an organizer or other authorized person
The online route costs $208 in total for a domestic filing; Alabama Interactive’s fee table splits this into a $100 Secretary of State fee, a $100 county fee and a small portal charge. The Secretary of State’s LLC page lists the paper filing fee as $200. Older guides that tell you to file with your county probate judge are out of date: formation documents now go to the Secretary of State.
Step 4: Create an operating agreement
Alabama doesn’t make you file an operating agreement with the state, but every LLC should have one in writing. The agreement records who owns what percentage, how profits are split, who can sign contracts, and what happens if a member leaves or dies.
Single-member LLCs benefit too. A signed agreement helps show banks and courts that the LLC is a separate business, which supports the liability protection that made you form an LLC in the first place.
Step 5: Get an EIN from the IRS
An Employer Identification Number (EIN) is your LLC’s federal tax ID. Multi-member LLCs and any LLC with employees need one, and most banks ask for an EIN before opening a business account. The IRS issues EINs free online, so there’s no reason to pay a third party just for the number itself.
One federal item you can cross off: FinCEN’s beneficial ownership information page states that U.S.-formed companies are exempt from BOI reporting under the final rule that took effect in August 2026.
Step 6: Understand Alabama’s Business Privilege Tax
Instead of an annual report to the Secretary of State, Alabama LLCs deal with the Business Privilege Tax administered by the Alabama Department of Revenue. The tax is based on the entity’s net worth in Alabama, with a $100 minimum.
The Department of Revenue’s 2026 quick reference sets out two rules that matter for a new LLC:
- An initial return (Form BPT-IN) is due within two and a half months of formation only if the privilege tax calculates to more than $100.
- For taxable year 2026, an LLC whose tax would be the $100 minimum has no filing requirement.
When a return is required, it’s due by the same date as the LLC’s federal income tax return. Small LLCs often owe nothing, but check your figures each year rather than assuming you’re exempt.
Step 7: Get business licenses and register for taxes
Alabama business licenses work at more than one level. The Department of Revenue’s Business and License division coordinates state and county business privilege licenses, which are issued locally through county offices, and most cities require their own municipal license as well.
If you’ll sell taxable goods, hire employees or collect other state taxes, register through My Alabama Taxes and the relevant state agency before you open. Requirements depend on your industry and city, so call your county license office before your first sale.
How much does it cost to start an LLC in Alabama?
The unavoidable state costs are the name reservation and the Certificate of Formation. Everything else depends on your choices.
| Cost item | Online | |
|---|---|---|
| Name reservation | $25 | $28 |
| Certificate of Formation | $200 | $208 |
| Minimum total | $225 | $236 |
Expect extra local costs for county and city business licenses, plus any professional or industry permits. The Business Privilege Tax starts at $100, though LLCs whose tax would only be that minimum had no 2026 filing requirement.
Alabama LLC FAQs
How much does it cost to form an LLC in Alabama?
The minimum Alabama state cost is $225 by mail: a $25 name reservation plus the $200 Certificate of Formation fee. Filing both online through Alabama Interactive costs $236 in total ($28 for the reservation and $208 for the formation filing), as of October 2026. Local business licenses and any Business Privilege Tax due are extra.
Do I have to reserve a name before forming an Alabama LLC?
Yes. Alabama requires a Certificate of Name Reservation from the Secretary of State before you can file a Certificate of Formation for a domestic LLC. The reservation costs $25, or $28 online through Alabama Interactive, and the reservation details are submitted along with the formation filing.
Does an Alabama LLC file an annual report?
Alabama LLCs do not file an annual report with the Secretary of State. The recurring obligation is the Business Privilege Tax, administered by the Alabama Department of Revenue. For taxable year 2026, an LLC whose privilege tax would be only the $100 minimum has no filing requirement, according to the department’s quick reference.
Can I be my own registered agent in Alabama?
Yes, as long as you have a street address in Alabama and can accept legal papers there during normal business hours. A P.O. box is not allowed. Many owners use a commercial registered agent instead to keep a home address off the public record and to make sure service of process is never missed.
Do I still file with the county probate judge?
No. Alabama LLC formation documents are filed with the Secretary of State, either online through Alabama Interactive or by mail. The online fee table still shows a county portion of the formation fee, but you no longer deliver paperwork to a probate office. County offices remain involved in issuing business privilege licenses.
What does it cost to register an out-of-state LLC in Alabama?
A foreign LLC that wants to do business in Alabama registers with the Secretary of State instead of forming a new company. The state filing fee is $150, and the online total through Alabama Interactive is $156, as of October 2026. The LLC also needs an Alabama registered agent.
Do Alabama LLCs need an EIN?
Any Alabama LLC with employees or more than one member needs an EIN, and most banks require one to open a business account. Single-member LLCs without employees can technically use the owner’s Social Security number for federal taxes, but an EIN keeps business and personal records separate. The IRS issues EINs online at no cost.
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