Alabama LLC Formation

Start an LLC in Alabama — Fast Filing, Growing Business Economy

Alabama is one of the fastest-growing states for manufacturing, aerospace, and automotive businesses — home to Mercedes-Benz, Honda, and Hyundai facilities, plus a booming small business scene in Birmingham, Huntsville, and Mobile. With a straightforward LLC formation process and no publication requirement, Alabama is a solid choice for entrepreneurs operating in the Heart of Dixie. Brendat handles your Certificat

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Step-by-step guide

How to Form an LLC in Alabama

Six clear steps — no publication requirement. Note Alabama's unique Business Privilege Tax requirement. Brendat handles the filing while you focus on your business.

Choose a Name for Your Alabama LLC

Your Alabama LLC name must be unique among all businesses registered with the Alabama Secretary of State and must include a required designator.

Alabama Naming Rules:

Must include:"Limited Liability Company," "LLC," or "L.L.C."
Cannot use:Words implying a government agency (e.g., "FBI," "State Department")
Restricted words:"Bank," "Insurance," "University" require additional approval
Must be distinguishable: From all existing Alabama business names in the SOS database

Name Reservation Available

You can reserve your Alabama LLC name for 1 year with the Alabama SOS for $28. Brendat checks name availability before filing your Certificate of Formation.

Appoint a Alabama Registered Agent

Every Alabama LLC must designate a registered agent — an individual or company with a physical Alabama street address — to receive legal documents and official state notices during regular business hours.

Who can be your registered agent?

Yourself: Must have a physical Alabama address and be available during business hours
A trusted individual: Any Alabama resident with a physical address
A professional service: Like Brendat — keeps your personal address private and ensures you never miss important mail

Brendat provides registered agent service in Alabama

Our Alabama address is listed on your Certificate of Formation. Included in Standard and Premium packages.

File Certificate of Formation with the Alabama Secretary of State

Alabama calls its LLC formation document a Certificate of Formation — filed with the Alabama Secretary of State online via the Alabama SOS portal or by mail.

Method	Fee	Processing Time
Online via AL SOS portal	$200	3–5 business days
By Mail	$200	4–6 weeks
Expedited (same day)	$200 + $100	Same business day

No publication requirement in Alabama

Alabama does not require LLCs to publish a formation notice in any newspaper. Once your Certificate of Formation is approved, your LLC is fully formed.

Create an Operating Agreement

Alabama does not legally require an operating agreement, but it is strongly recommended for all Alabama LLCs. It establishes ownership, profit sharing, and management rules and strengthens your liability protection.

Your operating agreement should cover:

Ownership percentages: Each member's share of the LLC
Profit and loss distribution: How earnings are divided
Management structure: Who makes decisions and how voting works
Member changes: Rules for adding or removing members
Dissolution: What happens if the LLC closes

Included in Brendat Standard and Premium

Brendat provides a professionally drafted Alabama operating agreement with your formation documents.

Get Your EIN (Employer Identification Number)

An EIN is your LLC's federal tax ID — required to open a business bank account, hire employees, and file taxes. You apply through the IRS for free.

US residents: Apply free online at IRS.gov — instant approval
Non-US residents: Apply by fax using IRS Form SS-4 — takes 4–6 weeks
Brendat handles this: EIN filing is included in Standard and Premium packages

Open a business bank account after your EIN arrives

With your EIN and approved Articles of Organization, you can open a dedicated business bank account at any US bank. This keeps your finances separate — critical for maintaining your LLC's liability protection.

File Your Alabama Annual Report

Alabama has a unique ongoing requirement — the Business Privilege Tax (BPT). Every Alabama LLC must file and pay the BPT annually with the Alabama Department of Revenue. This is separate from the Secretary of State annual report.

Minimum BPT: $100 per year
BPT amount: Based on net worth — minimum $100 regardless of size
Due date: March 15 every year (with your LLC's tax return)
Filed with: Alabama Department of Revenue (not SOS)

Don't miss May 1

Alabama's Business Privilege Tax is a separate annual requirement on top of any federal or state income taxes. The minimum is $100/year due March 15. It is filed with the Alabama Department of Revenue — not the Secretary of State. Failure to pay can result in loss of good standing. Brendat sends reminders so you stay compliant.

Transparent pricing

How Much Does a Alabama LLC Cost?

Full breakdown — including Alabama's unique Business Privilege Tax.

State Filing Fee

$200

One-time Certificate of Formation fee paid to the Alabama Secretary of State

Business Privilege Tax

$100/yr

Minimum annual Alabama BPT — filed with Dept. of Revenue by March 15 each year. Based on net worth

Publication Requirement

No newspaper publication requirement in Alabama

Registered Agent

Included in Brendat Standard & Premium packages. Every Alabama LLC must maintain a registered agent

EIN (Federal Tax ID)

Free from the IRS. Included in Brendat Standard & Premium packages

Operating Agreement

Included in Brendat Standard & Premium packages

Total with Brendat Standard Plan

$149 + $1 state fee

$149 Brendat + $200 AL state fee · Business Privilege Tax $100/yr minimum due March 15 from year 2

Choose your plan

Alabama LLC Formation Packages

All packages include accurate, state-specific filing. Pick what fits your needs.

Basic

Brendat service fee

+ $1 Alabama state fee

DIY filing support

Get Started Free

Articles of Organization filed
Name availability check
Email support
Digital copy of filed documents
EIN / Federal Tax ID
Operating Agreement
Registered Agent (1 year)

Standard

$149

Brendat service fee

+ $1 Alabama state fee

Premium

$299

Brendat service fee

+ $1 Alabama state fee

Full-service formation

Get Premium

Everything in Standard
Business bank account setup
Compliance calendar & reminders
Annual report filing (year 1)
Dedicated account manager
Phone & priority support

State Comparison

Is Alabama the Right State for Your LLC?

Alabama is best if you live or operate there. Here's how it compares to neighboring Southeast states.

Feature	Alabama	Georgia	Tennessee	Mississippi
State Filing Fee	$200	$100	$300	$50
Annual Ongoing Fee	$100/yr BPT	$50/yr	$300/yr	$0/yr
State Income Tax	2%–5%	4.49%	None	4.7% flat
Publication Required	None	None	None	None
Processing Time	3–5 days	~7 days	~5 days	~3 days
Best For	AL businesses	GA businesses	TN businesses	MS businesses

Alabama's Business Privilege Tax is unique

Unlike most states that charge a simple annual report fee, Alabama's $100/year minimum Business Privilege Tax is filed with the Dept. of Revenue — a separate agency from the SOS. Brendat tracks both requirements and sends reminders so nothing slips through.

Why choose us

Why 10,000+ Entrepreneurs Choose Brendat

Fast Filing

We submit your Alabama Certificate of Formation within 1 business day of your order. Standard processing takes 3–5 business days. Same-day expedited available for $100 extra.

100% Accuracy Guarantee

Every filing is reviewed before submission. If the Alabama SOS rejects your documents due to our error, we fix it at no charge.

Privacy First

Your home address stays off the public record. We list our Alabama registered agent address on all your formation documents.

Annual Report Reminders

Alabama's Business Privilege Tax is due March 15 every year. We send reminders in advance so you never miss this important annual filing.

Non-US Residents Welcome

No citizenship or US residency required. We assist international entrepreneurs with the full process including EIN filing.

Real Support

Reach our team at (303) 246-8693 or by email. Plain English answers — no jargon, no runaround.

Our reviews

What Our Alabama LLC Customers Say

James T.

Landscaping LLC, Miami FL

"Brendat explained the Business Privilege Tax upfront — I had no idea Alabama had this separate annual requirement. Really appreciated the transparency and the reminder service."

Maria S.

Tech LLC, Huntsville AL

"My Huntsville tech startup was up and running in under a week. Brendat handled the Certificate of Formation and EIN without any hassle. Excellent service!"

Carlos W.

Real Estate LLC, Mobile AL

"Fast, professional, and knowledgeable about Alabama's specific requirements. Brendat's registered agent service keeps my home address private — worth every penny."

Common questions

Alabama LLC — Frequently Asked Questions

Answers to the most common questions about forming and running an LLC in Alabama.

Still have questions?

Talk with our Alabama LLC specialists.

(303) 246-8693

How much does it cost to form an LLC in Alabama?

The Alabama state filing fee is $1 (Certificate of Formation). Brendat's service starts at $0 (Basic) or $149 (Standard). Total first-year cost with Standard is $349. Alabama also requires a Business Privilege Tax of at least $100/year due March 15 — filed separately with the Alabama Department of Revenue.

What is Alabama's Business Privilege Tax?

The Alabama Business Privilege Tax (BPT) is an annual state tax that all Alabama LLCs must pay to the Alabama Department of Revenue by March 15 each year. The minimum is $100/year regardless of LLC size or revenue. The tax is calculated based on net worth but will never be less than $100. This is separate from any SOS filing fee and is a unique Alabama requirement that many LLC owners are unaware of.

Does Florida have a state income tax for LLCs?

No. Alabama does not require LLCs to publish a formation notice in any newspaper. Once your Certificate of Formation is approved by the Alabama Secretary of State, your LLC is fully formed — no publication steps needed.

What is Alabama's income tax rate for LLCs?

Yes. Florida LLCs must file an annual report every year with the Florida Division of Corporations. The fee is $138.75 and it is due by May 1 each year. If you miss the May 1 deadline, a $400 late fee is added. LLCs that do not file by September 30 are administratively dissolved by the state.

How long does it take to form an LLC in Alabama?

Standard online processing with the Alabama Secretary of State takes approximately 3–5 business days. Same-day expedited processing is available for an additional $100. Mail filings take 4–6 weeks. Brendat submits your Certificate of Formation within 1 business day of your order.

Does Florida require an operating agreement for LLCs?

Yes. There is no US citizenship or residency requirement to form an Alabama LLC. Non-residents need a registered agent with a physical Alabama address (Brendat provides this). For your EIN, non-residents must apply by fax using IRS Form SS-4. Brendat assists with this process.

Ready to Start Your Alabama LLC?

Let Brendat handle your Articles of Organization, EIN, registered agent, and annual report reminders — so you can focus on building your Alabama business.

Form My Alabama LLC

$149 + $1 AL state fee · 100% accuracy guarantee