Start a Business by State › Alabama
How to start an LLC in Alabama: checklist (2026)
To start an LLC in Alabama, file the Domestic Limited Liability Company Certificate of Formation with the Alabama Secretary of State for $236, name a registered agent, get a free EIN and check your local licenses. Mainstay Filing, our best overall pick, does the filing, the agent, the EIN application and the report for $199 a year.
- Official sources, checked October 20, 2026
Alabama checklist
- File the formation document. Domestic Limited Liability Company Certificate of Formation, Alabama Secretary of State, $236. Online total: $208 for the Certificate of Formation ($200 by mail) plus the required name reservation, $28 online ($25 by mail).
- Name a registered agent. Required. An Alabama resident, or a business entity formed in Alabama or registered to do business there. The agent keeps a business office at the registered office address.
- Get an EIN. Free from the IRS online.
- Check licenses. Alabama Department of Revenue says: “A privilege license is a license requirement of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40, Chapter 12” (state business license or registration).
- Keep it current. Alabama has no annual report. Alabama LLCs file no annual report with the Secretary of State. The Department of Revenue's business privilege tax return (Form PPT) is required only when the tax, which is based on net worth, comes to more than $100, and it is due with the federal income tax return.
Mainstay Filing
$199 / year, same at renewal
- LLC formation, prepared and filed
- Registered agent, all year
- EIN application (with an SSN or ITIN)
- Annual report filed every year it is due where the state requires one
- Compliance reminders and stored documents
Price from the Mainstay Filing pricing and FAQ pages, checked October 21, 2026. State fees are passed through at cost and shown before you pay.
Questions
How much does it cost to start an LLC in Alabama?
The state filing fee is $236 for the Domestic Limited Liability Company Certificate of Formation. The first report later costs nothing because none is required.
Do I need a registered agent in Alabama?
Every LLC must name a registered agent with an in-state street address.
Do I need a business license in Alabama?
Alabama Department of Revenue says: “A privilege license is a license requirement of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40, Chapter 12” (state business license or registration).
Sources
- Alabama formation fee: Filing fee, official source read 2026-10-01: alison.legislature.state.al.us/code-of-alabama?section=10A-1-4.31, checked October 1, 2026
- Alabama formation fee: Filing fee, official source read 2026-10-01: www.sos.alabama.gov/sites/default/files/form-files/FeeSchedule.pdf, checked October 1, 2026
- Alabama formation fee: Name reservation (required), official source read 2026-10-01: www.sos.alabama.gov/sites/default/files/2022-01/domesticEntityNameReservation.pdf, checked October 1, 2026
- Alabama formation fee: Name reservation (required), official source read 2026-10-01: alison.legislature.state.al.us/code-of-alabama?section=10A-1-5.14, checked October 1, 2026
- Alabama Department of Revenue, 2024 business privilege tax filing changes: www.revenue.alabama.gov/notice-important-changes-to-the-2024-business-privilege-tax-filing-requirements/, checked October 1, 2026
- Alabama report due date (multira state research spine, due dates verified 714/714): www.sos.alabama.gov/business-entities, checked August 12, 2026
- Alabama registered agent statute (Ala. Code § 10A-1-5.31): alisondb.legislature.state.al.us/alison/CodeOfAlabama/1975/10A-1-5.31.htm, checked October 20, 2026
- Alabama Secretary of State: www.sos.alabama.gov/, checked October 20, 2026
- IRS: Get an employer identification number: www.irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number, checked October 21, 2026
- Alabama Department of Revenue (business license statement): www.revenue.alabama.gov/faqs/what-is-a-privilege-license/, checked October 21, 2026