How much does it cost to start an LLC in Alabama in 2026?

Forming an LLC in Alabama requires a one-time initial filing fee of $200 paid to the Alabama Secretary of State. When accounting for standard registered agent compliance ($39-$125/yr), expect initial Year 1 costs to be approximately $239.

What are the annual recurring fees for a Alabama LLC?

Alabama charges an annual report fee of $0 filed on a none basis (due March 15 (with Business Privilege Tax return)). Additionally, Alabama imposes a franchise tax: Business Privilege Tax (BPT) minimum $100/yr ($0 for taxable entities with net tax due under $100 under recent legislation).

What is the true 5-year cost of maintaining a Alabama LLC?

Over 5 years, the true cost of a Alabama LLC is approximately $895. This includes initial formation ($200), recurring none reports ($0), statutory franchise taxes, and compliance support.

Can I form an out-of-state LLC (e.g. Wyoming or Delaware) if I live in Alabama?

While you can legally form an entity in Delaware or Wyoming, if your principal place of business, employees, or operations are located in Alabama, you must register as a Foreign LLC in Alabama. In Alabama, the foreign qualification filing fee is $150 plus ongoing maintenance of $100/year, often resulting in double fees.

Verified 2026 Statutory Guide

Alabama LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $200. Ongoing annual report fee: $0 (none). Franchise tax: $100/yr minimum.

Compare Alabama vs Others

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in Alabama costs $200 for the one-time Articles of Organization filing fee, plus $0/yr in recurring none report fees. Over 5 years, maintaining a Alabama LLC costs an estimated $895, including mandatory annual franchise taxes.

Initial State Filing$200One-time payment

Annual Report$0Due March 15 (with Business Privilege Tax return)

Franchise Tax$100/yrminimum

Registered Agent$39–$125Annual service

Statutory Department: Alabama Secretary of State

Verify on State Website (.gov)

Alabama LLC 5-Year Cost Model

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Popular:

1. State of LLC FormationInitial: $200

Approval speed: 2-5 business days•Public Privacy: Standard

2. Where do you conduct business?

If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.

3. Estimated Annual Gross Revenue$150,000

Alabama Tax Rule: Business Privilege Tax (BPT) minimum $100/yr ($0 for taxable entities with net tax due under $100 under recent legislation).

4. Registered Agent ServiceMandatory by law

5. Expedited State Processing

Expedited State Processing (+$100)

Accelerates state filing from 2-5 business days to 24-48 hours.

Deciding where to incorporate?

Compare Alabama vs Wyoming & Delaware →

Year 1 Setup Cost

$339

Initial formation fee ($200) + registered agent

Annual Maintenance

$139 /yr avg

No annual report fee + franchise tax

5-Year True CostAll Hidden Fees Included

$895(~$15/mo)

Total 5-year statutory commitment to maintain legal compliance in Alabama.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($339)

$339

Year 1Formation

$139

Year 2Renewal

$139

Year 3Renewal

$139

Year 4Renewal

$139

Year 5Renewal

State Formation & Expedited

Franchise & Entity Taxes

Annual / Biennial Reports

Special Mandates (Publication, etc.)

Registered Agent Compliance

Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $339

State Filing$200

Franchise Tax$100

Annual Report$0

Special / Pub$0

Registered Agent$39

Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings

$200

22% of 5-yr budget

Total Franchise Taxes

$500

56% of 5-yr budget

Annual / Biennial Reports

0% of 5-yr budget

Registered Agent Service

$195

22% of 5-yr budget

Publication / Mandates

0% of 5-yr budget

Founder Cost-Reduction Tip

Save on your Alabama filing fees & protect your personal privacy

Pro Tip: Filing directly through the state exposes your personal home address on public government records forever. You can keep your private details off the public registry and save time by using a top-rated Registered Agent service starting at $39 + state fees.

Free Home Address RedactionInstant Alabama Compliance AlertsAnnual Report Reminders

Get Started for $39 + State FeesRated 4.8/5 by 10,000+ founders • No hidden renewal spikes

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Open a zero-fee business checking account for your Alabama LLC

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Alabama LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the Alabama Secretary of State.

Official State Portal (.gov)

Annual Report Due DateMarch 15 (with Business Privilege Tax return)Frequency: NONE

Normal Turnaround2-5 business daysExpedited: +$100

Public Record PrivacyStandardRegistered agent protects personal address

State Personal Income TaxUp to 5%LLC pass-through profits flow to owners

Alabama Franchise Tax & Business Privilege Tax Rules

Business Privilege Tax (BPT) minimum $100/yr ($0 for taxable entities with net tax due under $100 under recent legislation).

Advantages of a Alabama LLC

Lower living costs
Moderate filing overhead

Drawbacks & Hidden Costs

Annual Business Privilege Tax paperwork required
High initial $200 filing fee

Founder Pro-Tip for Alabama

Make sure to file the initial Business Privilege Tax return within 2.5 months of formation.

Step-by-Step Alabama LLC Formation Checklist (2026)

Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the Alabama Secretary of State registry.

Appoint a Alabama Registered Agent

Must have a physical street address in Alabama (no P.O. boxes) to receive official service of process during regular business hours.

File Articles of Organization ($200 State Fee)

Submit electronically to the Alabama Secretary of State. Approval is typically granted within 2-5 business days.

Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

Maintain Ongoing Legal Good Standing (March 15 (with Business Privilege Tax return))

Submit the none report with the $0 fee to prevent automatic forfeiture or late fee assessments.

Compare Alabama with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Filing: $100

Filing: $110

Filing: $300

Filing: $70