Alabama LLC Cost (2026)

See Alabama LLC costs in 2026, including state filing fees, recurring fees, registered agent, EIN, taxes, licenses, and common add-on costs.

Alabama LLC cost starts with the $200 Certificate of Formation filing, but the practical first-year budget depends on registered-agent service, tax accounts, local licenses, and whether business privilege tax filing creates a recurring cost after formation.

Educational note: This guide is for general informational purposes only. It is not legal, tax, accounting, or financial advice. Confirm current requirements with the Alabama Secretary of State, tax agencies, and qualified professionals.

Most people need this first

For a simple Alabama LLC, the practical order is:

Search the name -> choose registered agent -> file Certificate of Formation -> get EIN if needed -> register for state tax or licenses if required -> calendar recurring filings

Alabama LLC cost at a glance

The main formation cost

The main Alabama LLC filing fee is $200 for the Certificate of Formation. That filing does not include registered-agent provider fees, EIN, tax registrations, local permits, professional licenses, or optional legal/accounting help.

What not to add to the state filing fee

Do not treat every possible business cost as part of the Alabama LLC filing fee. The core formation charge is tied to the Certificate of Formation, currently summarized here as $200; Business Privilege Tax is a separate recurring item summarized as $0 if calculated business privilege tax is $100 or less; otherwise varies. Business insurance, bookkeeping software, payment processing, website costs, registered-agent renewals, local licenses, and professional advice are operating costs. They may be important, but they are not the same as the state charge to create the LLC.

Recurring cost

Alabama LLCs do not file a simple Secretary of State annual report. The recurring issue is Alabama Department of Revenue business privilege tax compliance. New LLCs commonly deal with the initial business privilege tax return after formation, and later returns follow tax-return timing rather than a one-size annual report date. Treat this as a separate compliance item from the formation filing. A low first-year state filing fee can still become expensive if the LLC misses its recurring filing, tax, or license deadlines.

Registered agent cost

An Alabama LLC must maintain a registered agent and registered office in Alabama. The agent must be available to receive service of process. If an owner can legally serve and stay available at a qualifying street address, the provider fee may be $0. If privacy, mail handling, or out-of-state ownership matters, commercial registered-agent service becomes a recurring cost.

Cost FAQ

How much does it cost to start an Alabama LLC?

The state formation filing is $200. Real first-year cost can be higher once registered-agent service, tax registration, licenses, and professional help are added.

Is EIN included in Alabama LLC formation?

No. EIN is separate and free when obtained directly from the IRS.

Should I budget for licenses?

Yes if the business has regulated activity, a physical location, sales tax obligations, employees, or local licensing rules. For Alabama, start with this licensing summary: Alabama does not use one universal LLC license. Local business licenses, sales tax accounts, professional boards, and city or county rules depend on the activity and location.

Official resources

• Alabama Secretary of State business downloads
• Alabama name search
• Alabama business privilege tax
• My Alabama Taxes
• IRS EIN application