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How to start an LLC in Alabama

Every step to form your LLC in Alabama, with the state's fees and the official page for each. Checked against the state's own pages on September 30, 2026.

Filing fee
$200
Regular report
Depends on the business
What you file
Certificate of Formation
Where
The Alabama Secretary of State

Get the free checklist It follows these steps with you, for your business, and keeps track of what's done.

What an LLC costs in Alabama

Filing Certificate of Formation with the Alabama Secretary of State$200
The regular report that keeps it in good standingDepends on the business
An EIN from the IRSFree
A registered agentFree if you're your own; a service charges a yearly fee

The state's fees only. Card or handling fees, a registered agent service, local licenses and taxes come on top where they apply. Checked against official sources on September 30, 2026. It's general information, not legal or tax advice.

Step by step

In the order most owners do them. Each step says where it happens and links to the official page.

  1. With the state

    Check your name is free

    Search the Alabama Secretary of State's business records to check no business already uses your name, or one too close to it. An LLC's name must also end with "LLC" or a similar ending.

    Search business names (opens the official site)

  2. With the state

    Reserve your business name

    Alabama requires a Certificate of Name Reservation from the Secretary of State before you file your Certificate of Formation. It costs $25 by mail, or $28 online through Alabama.gov.

    The official page (opens the official site)

  3. Your records

    Choose a registered agent

    Every LLC and corporation in Alabama needs a registered agent: a person or company with a street address in Alabama who receives legal papers and state notices for it. You can be your own, or pay a registered agent service.

  4. With the state

    File your Certificate of Formation

    Once your name is reserved, file it with the Alabama Secretary of State, online or by mail, with a copy of your Name Reservation Certificate. The state's fee is $200 ($100 of it goes to the county of your registered agent); online, the total through Alabama.gov is $208. Once it's filed, your business exists.

    File online (opens the official site)

  5. Your records

    Write an operating agreement

    It sets out who owns the LLC, how decisions are made and what happens if someone leaves. It isn't filed with the state: keep it with your records. A lawyer can help you write one.

  6. With the IRS

    Get an EIN from the IRS

    An Employer Identification Number is your business's tax number, for taxes, hiring and a bank account. Apply once your Certificate of Formation are filed. It's free from the IRS: with a Social Security number or ITIN, you can apply on the IRS's own site and get it at once. Watch out for look-alike sites that charge for it.

    Apply for an EIN on IRS.gov (opens the official site)

  7. With the state

    Register for state taxes

    If you'll sell taxable goods or services, or hire employees, register with the Alabama Department of Revenue on My Alabama Taxes. Employers also register with the Alabama Department of Workforce for unemployment insurance once they've paid wages for work in Alabama.

    Register for state taxes (opens the official site)

  8. City or county

    Check local licenses and permits

    Alabama requires a state and county privilege license for the businesses its law lists (Title 40, Chapter 12 of the Code of Alabama), issued by the probate judge or license commissioner in each county where you do business. Cities have their own business licenses, and some trades need a permit from their state board first. Check with each city where you'll work, and with your county, before you start.

    Find your local requirements (opens the official site)

  9. Your records

    Open a business bank account

    Keep the business's money apart from your own: it keeps your records clear at tax time, and keeps the LLC separate from you. Banks usually ask for your filed Certificate of Formation and your EIN.

  10. With the state

    Check whether you owe Alabama's business privilege tax

    Alabama has no annual report for LLCs. Instead, an LLC whose Alabama business privilege tax works out to more than $100 files a Business Privilege Tax Return (Form PPT) with the Alabama Department of Revenue, by the due date of its federal income tax return. If the tax works out to $100 or less, there's nothing to file. The tax is based on the business's net worth in Alabama. A new LLC that owes more than $100 files an initial return (Form BPT-IN) within two and a half months after it's formed.

    About annual reports (opens the official site)

Questions about an LLC in Alabama

How much does it cost to start an LLC in Alabama?

The state's fee to file Certificate of Formation is $200. Its regular report costs an amount that depends on the business. An EIN from the IRS is free.

Does Alabama require a yearly report for an LLC?

Yes. Alabama asks every LLC for a regular report or payment to stay in good standing. What it costs depends on the business: the step below says how it works and where to file.

Can I form an LLC in Alabama myself?

Yes. You file Certificate of Formation with the Alabama Secretary of State and pay the state's fee, and the steps above show where. You don't need a lawyer, though one can advise on your situation. PressUp's free checklist follows these steps with you.

Is this legal or tax advice?

No. PressUp isn't a law firm or an accountant. This guide is general information from Alabama's official pages, checked on September 30, 2026. For advice about your own situation, ask a lawyer or an accountant.

Where this comes from

Alabama's official pages, read on September 30, 2026:

LLC guides for other states