start an llc in Alabama

How to Start an LLC in Alabama

To start an LLC in Alabama, you must file a Certificate of Formation with the Alabama Secretary of State.

• Filing fee: $200

• Approval time: 1 business day (online), 1–2 business days by mail (plus mail time)
  
  

6 Steps to Start an Alabama LLC:

• Choose an LLC Name

• Select a Registered Agent

• File the Certificate of Formation

• Create an Operating Agreement

• Get an EIN from the IRS

• File the Initial Business Privilege Tax
  
  

If you want to form your LLC yourself, follow the stated steps.

Prefer to have it done for you? We recommend hiring RAINC to handle the entire process.

How Much Does It Cost to Start an LLC in Alabama?

• $200 to file the Certificate of Formation (one-time)

• $50 minimum per year for the Annual Report & Business Privilege Tax

These are mandatory state fees to create and maintain your LLC in good standing.

How Long Does It Take to Get an LLC in Alabama?

• Online filing: Approved immediately

• Mail filing: Approved in 1–2 business days, plus mailing time
  
  

Initial Business Privilege Tax (BPT)

All Alabama LLCs must file an Initial Business Privilege Tax Return and pay the tax within 2.5 months of formation.

How much does the Initial BPT cost?

• Minimum fee: $50 (one-time)
  
  

• Your total fee may be higher depending on your federal income taxes and net worth

 Tip: We recommend consulting a tax professional for personalized advice.

When is it due?

• Deadline: 2.5 months after your LLC is formed
  Example: If your LLC is approved on March 15, the BPT is due by May 29.
  
  

How to file the Initial BPT:

• Online (recommended)

• Or by mail via the Alabama Department of Revenue