Alabama LLC Formation Guide

Everything you need to form an LLC in Alabama — fees, timelines, and step-by-step filing instructions.

$200
Filing fee
5d
Processing
$100
Annual report
$300
Est. first year
StateAlabama
AbbreviationAL
Filing fee$200
Processing time5 business days
Expedited availableYes
Online filingYes
Annual report fee$100
Annual report dueApril 15
Registered agent requiredYes
State tax on LLCNo (pass-through only)

Alabama-specific notes

Online filing available through SOS website. Business privilege tax applies based on net worth.

How to form an LLC in Alabama — step by step

1

Search your business name

Verify your desired LLC name is available in Alabama. The name must include "Limited Liability Company," "LLC," or "L.L.C." Use the Alabama Secretary of State business search tool.

2

Choose your registered agent

Designate a registered agent with a physical Alabama address available during business hours. You can serve as your own agent or use a registered agent service ($50–$300/year).

3

File articles of organization

Submit your articles of organization to the Alabama Secretary of State online. Pay the $200 filing fee. Expedited processing is available for an additional fee.

4

Wait for approval

Standard processing takes approximately 5 business days. Expedited options are available if you need faster approval. You will receive a stamped copy of your articles once approved.

5

Create an operating agreement

Draft an operating agreement outlining ownership, management structure, profit sharing, and member responsibilities. Alabama does not require an operating agreement by law, but it is strongly recommended for all LLCs.

6

Get your EIN

Apply for a federal Employer Identification Number (EIN) free at IRS.gov. Takes about 10 minutes online. Required for business bank accounts, hiring employees, and filing taxes.

7

Open a business bank account

Use your EIN, articles of organization, and operating agreement to open a dedicated business checking account. Keeping business and personal finances separate is essential for maintaining your liability protection.

8

File annual reports & pay taxes

File your Alabama annual report ($100) by April 15 each year. Keep your registered agent updated and pay any applicable state taxes.

Want someone to handle the Alabama filing for you?

These services file your Alabama LLC articles of organization and handle registered agent setup.

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