Business formation
Form your business in Alabama
Start your LLC, S-Corp, C-Corp, or Nonprofit in Alabama with a guided, step-by-step workflow tailored to your entity type - and know the state filing fee before you begin.
Forming an LLC in Alabama costs $200 in state filing fees, which is among the most expensive in the country: 44 of the 51 U.S. jurisdictions charge less, and the national median is $100. A corporation files for $200 and a nonprofit for $200. Below: the fee table, what else you pay in year one, and the questions founders ask before filing here.
Alabama state filing fees
These are the one-time fees paid to the Alabama Secretary of State to file your formation document. They are separate from any EazeAccounts service or package fee.
| Entity type | State filing fee |
|---|---|
| LLCArticles of Organization - flexible, pass-through, simple to run. | $200 |
| Corporation (C-Corp / S-Corp)Articles of Incorporation - shares, board, officers. S-Corp is a federal tax election on the same state filing. | $200 |
| NonprofitNonprofit Articles of Incorporation - mission-driven; optional 501(c)(3). | $200 |
Note: corp/nonprofit are SOS fee only; counties add a probate filing fee. Some aggregators list nonprofit at $100 (older).
Estimated state filing fees, separate from EazeAccounts service fees. Some states set a minimum that can rise with authorized shares, and expedited or online filing may differ. Fees last verified May 2026; confirm the current amount with the Alabama Secretary of State before filing.
What an LLC costs every year in Alabama
Business Privilege Tax Return (Form PPT)
$0 for most small LLCs
With the LLC's federal income tax return (March 15 for a calendar-year LLC taxed as a partnership), only if tax is owed Alabama has no Secretary of State annual report for LLCs; the privilege tax return, filed with the Department of Revenue, is the only recurring state filing.
State tax on the LLC
Alabama's Business Privilege Tax is $0.25 to $1.75 per $1,000 of taxable Alabama net worth, up to $15,000 for most LLCs. Since tax years beginning in 2024, a calculated tax of $100 or less is exempt from both filing and payment, so most small LLCs owe nothing and file nothing. An LLC whose tax would exceed $100 files Form PPT each year, and a new LLC in that position files an initial return, Form BPT-IN, within two and a half months of formation.
How long Alabama takes
The Certificate of Formation can be filed online and is usually approved almost immediately. No paid expedite is listed for formation.
What is different about Alabama
- • A name reservation, about $25, is required before filing the Certificate of Formation.
- • There is no annual report with the Secretary of State; Alabama dropped it in October 2024.
- • Of the $200 formation fee, $100 goes to the county treasurer.
Guide reviewed September 2026 against the Alabama Secretary of State and the tax authority. Confirm current figures before filing.
What else you pay in year one
- Registered agent. Free if you serve as your own agent at a Alabama street address; a service charges an annual fee if you would rather keep your address off the public record.
- EIN. Free from the IRS. Anyone charging for an EIN alone is charging for the form.
- Annual report or franchise tax. Most states ask for a yearly report and some charge a fee or tax with it; the amount and deadline are set by Alabama. Check the Secretary of State page before you file so the first renewal is not a surprise.
- Licences and permits. City and county rules depend on what the business does, not on the entity type.
Not sure whether an LLC or a corporation fits? The entity cost calculator compares the two over three years, and the guide to LLC vs C-Corp covers the tax and investor side.
Questions founders ask about Alabama
- Do Alabama LLCs have to file an annual report?
- Not with the Secretary of State. An LLC whose Business Privilege Tax would exceed $100 files Form PPT with the Department of Revenue; one at $100 or less files nothing.
- Is there a minimum Business Privilege Tax for Alabama LLCs?
- Not in practice any more. Since tax years beginning in 2024, a calculated tax of $100 or less is exempt from filing and payment.
- How much does it cost to form an LLC in Alabama?
- $200 for the Certificate of Formation, plus the required name reservation of about $25.
- How much does it cost to start an LLC in Alabama?
- The Alabama state filing fee for an LLC is $200, paid once when you file the formation document. That is among the most expensive in the country: 44 of 51 jurisdictions charge less, and the national median is $100. Registered agent service, expedited processing and any EazeAccounts package are separate.
- Do I need a registered agent in Alabama?
- Yes. Every state requires an LLC or corporation to name a registered agent with a physical street address in Alabama who is available during business hours to receive legal and official mail. You can be your own agent if you live in the state, or use a service.
- What is the difference between the state fee and the EazeAccounts fee?
- The state fee goes to the Alabama Secretary of State and is the same whoever files for you. The EazeAccounts formation package covers preparing and filing the documents, the EIN, the operating agreement or bylaws, and setting your books up from day one. You always see both amounts before you pay.
- Is the state filing fee refundable if my filing is rejected?
- Generally no. States keep the fee even when a filing is rejected for a name conflict or a missing detail, which is why the name check and document review happen before anything is submitted.
Next step
Comparing states? Alaska, Arizona, or see filing fees in every state.
Ready to form in Alabama? Begin the step-by-step formation workflow.