form an LLC in alabama

How to Start an Alabama LLC

Alabama LLC Formation – Basics & Helpful Information

This article is meant to be a general overview of the Alabama LLC formation process; including information about how to start an Alabama LLC and other basic issues related to Alabama LLCs.

Alabama Filing Fees

The Alabama Secretary of State charges $100 (plus another $100 to expedite the LLC filing) as a filing fee for the Certificate of Formation. The Certificate of Formation and previously filed name reservation are to be submitted to the probate judge in the county where the LLC’s registered office is/will be located. The probate judge charges a minimum of $50 to review the LLC filing and forward to the Alabama Secretary of State (if approved). You’ll want to call the appropriate probate judge to determine their fee as it varies by county.

Alabama Filing Time

It takes the Alabama Secretary of State about 10 days after receipt from the Probate Judge (or 3 days if the expedited fee has been paid) to process a Certificate of Formation.

Alabama Annual Compliance Requirements

Every year the LLC must file Annual Report & Alabama Business Privilege Tax Return. Alabama does not charge a filing fee for the Annual Return. The Annual Report and Business Privilege Tax Return are due annually before April 15th (or 3.5 months after end of your fiscal tax year). The tax rate for the Alabama Business Privilege Tax is graduated, based on the entity’s federal taxable income apportioned to Alabama. The rates range from $.25 to $1.75 for each $1,000 of net worth in Alabama. The minimum tax is $100 and the maximum for most businesses is $15,000.

Read more on Alabama SOS website

Form an LLC in Alabama

You can use this checklist to help guide you through the process of forming an Alabama LLC:

Step 1: Decide on a Business Name

Step 2: Register your LLC with the State

Step 3: Create and Sign the LLC's Governing Document

Step 4: Get an EIN

Step 5: Get Licenses and Permits

Registering a Foreign LLC in Alabama