Alabama LLC Cost Calculator & 5-Year Taxes
Initial state filing fee: $200. Ongoing annual report fee: $0 (none). Franchise tax: $100/yr minimum.
Check if your LLC name is taken on official Alabama database
Every LLC name must be legally distinguishable on state records. Perform a free corporate name lookup on the official Alabama Secretary of State registry before submitting your $200 Articles of Organization.
How Much Does an LLC Cost in Alabama?
An LLC in Alabama costs $200 to form (one-time state filing fee) and $0 per year in none report fees. Alabama also charges a $100/yr minimum franchise tax. The estimated total 5-year cost is $895, including state fees, annual reports, and registered agent service.
| Fee Component | Statutory Cost | Frequency | Due Date / Requirement | Recipient Entity |
|---|---|---|---|---|
| Articles of Organization (Filing Fee) | $200 | One-time | Upon LLC formation | Alabama Secretary of State |
| Periodic Annual / Biennial Report | $0 | none | Due March 15 (with Business Privilege Tax return) | Alabama Secretary of State |
| State Franchise Tax / Entity Fee | $100/yr | Annual | Annual tax schedule | State Tax Department |
| Registered Agent Service | $0 (Self) or $39–$125 | Annual | Continuous requirement | Appointed agent / Commercial service |
| Operating Agreement & Federal EIN | $0 (Free) | One-time | Internal record / IRS issuance | Internal Company Record / IRS |
| Total Minimum Initial Formation | $200 (State statutory fees to open LLC) | |||
Alabama LLC 5-Year Cost Model
ALChoose a state and assumptions. Your five-year estimate updates instantly.
Future years assume today's reviewed rates remain unchanged. Historical estimates are not enabled because older rules have not been fully verified.
This estimate covers liabilities incurred in five taxable years (2026–2030), even when payment is due later.
Future years use an unchanged-current-law assumption. Income tax, legal advice, penalties, and unselected optional services are excluded.
Initial formation fee ($200) + registered agent
No annual report fee + franchise tax
Estimated liability for the selected inputs and disclosed scope in Alabama.
Five taxable years by cost category(Click any year to inspect)
Select a year to inspect its included liabilities and applicable tax due date.
Tax year 2026 included items
Total: $3395-Year Budget Allocation by Cost Category
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.
Open a zero-fee business checking account for your Alabama LLC
Separate your business finances immediately to preserve limited liability corporate veil protection.
Alabama LLC Statutory Framework & Compliance Guide (2026)
Statutory requirements and fee schedules under the Alabama Secretary of State.
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.
Alabama LLC Cost FAQ
Common questions about forming and maintaining an LLC in Alabama.
How much does it cost to start an LLC in Alabama?
The state filing fee to form an LLC in Alabama is $200, paid to the Alabama Secretary of State when you file your Articles of Organization. With a registered agent service ($39–$125/yr), expect to pay approximately $239 in your first year.
What is the Alabama LLC filing fee for 2026?
The Alabama LLC filing fee is $200. This is a one-time fee paid to the Alabama Secretary of State to register your Articles of Organization. Expedited processing is available for an additional $100. Normal processing time is 2-5 business days.
What are the annual fees for an LLC in Alabama?
Alabama charges a none report fee of $0, due March 15 (with Business Privilege Tax return). Additionally, Alabama imposes a franchise tax of $100/year minimum. Business Privilege Tax (BPT) minimum $100/yr ($0 for taxable entities with net tax due under $100 under recent legislation).
How much does it cost to maintain a Alabama LLC per year?
The annual cost to maintain a Alabama LLC includes the none report fee ($0), the state franchise/entity tax ($100/yr minimum), and a registered agent ($39–$125/yr). Over 5 years, the estimated total cost is $895.
Does Alabama have a franchise tax for LLCs?
Yes. Alabama imposes a franchise tax on LLCs: Business Privilege Tax (BPT) minimum $100/yr ($0 for taxable entities with net tax due under $100 under recent legislation). The minimum annual franchise tax is $100.
Can I form an LLC in Alabama if I live in another state?
Yes, you can form a domestic LLC in Alabama regardless of where you live. However, if your principal business operations are in a different state, you will also need to register as a Foreign LLC in that state. In Alabama, foreign LLC registration costs $150 plus $100/year in ongoing fees — often resulting in paying double.
Compare Alabama with Rival & Neighboring States
Evaluating formation options? Review fee structures in competing jurisdictions: