How to Register an LLC in Alabama: Steps, Fees, and Filings

To register an LLC in Alabama, you file a Certificate of Formation with the Alabama Secretary of State and pay a $200 state filing fee. Before you file, you need to reserve a compliant business name and line up a registered agent with an Alabama street address. After the state approves your filing, you’ll get an EIN from the IRS, decide on a tax classification, and handle a short list of follow-up items like the initial Business Privilege Tax return and any local licenses. Most filers can complete the state portion within a few business days if they file online.

Reserve Your LLC Name

Your name must include “Limited Liability Company” or an abbreviation such as “LLC” or “L.L.C.,” and it cannot contain “corporation,” “incorporated,” “corp.,” or “inc.”¹ It also has to be distinguishable from every other business entity already on file.

Alabama requires you to obtain a Certificate of Name Reservation before filing your formation documents.² Search the Secretary of State’s business database first to confirm your preferred name is available, then submit the reservation request to hold it while you prepare the rest of your paperwork.

Appoint a Registered Agent

Every Alabama LLC must designate a registered agent and maintain a registered office in the state. The agent accepts legal documents and official notices for the LLC.³

The agent can be an Alabama resident or a business entity registered to operate in the state. The registered office must be a physical street address where the agent can be personally served; a P.O. box, mailbox service, or answering service alone doesn’t qualify.³ You can serve as your own agent if you have a qualifying Alabama address, or hire a commercial service, which typically runs $35 to $350 per year.

File the Certificate of Formation

The Certificate of Formation is the document that legally creates your LLC. Under Alabama law it must include:⁴

The full LLC name, meeting the naming rules above.
A registered office street address in Alabama, including the county.
The name of your registered agent at that office.
A statement that the LLC has at least one member.
For a series LLC, the additional statement required under Section 10A-5A-11.02.

You may add other provisions, such as the LLC’s purpose or duration, and you can set a delayed effective date up to 90 days after signing. Leave that blank and the LLC takes effect once the state processes the filing.⁵

Filing Online

The Secretary of State’s online portal is the fastest option. Enter your LLC information, review, and sign electronically. Approval usually takes a few business days. The state filing fee is $200, plus a small portal fee charged by the state’s online vendor, paid by credit card at checkout.⁶

Filing by Mail

To file by mail, complete the form and send it to the Secretary of State with a $200 check or money order payable to the Alabama Secretary of State.² Expect two to four weeks for confirmation.

Filing Through the Probate Court

Alabama also allows you to file through the county Judge of Probate’s office, which transmits the paperwork to the Secretary of State. The base state fee is $100 for standard processing or $200 for expedited service, plus separate county fees that vary by location.⁷

Draft an Operating Agreement

Alabama law contemplates that every LLC will have an operating agreement. The statute says the agreement “shall be entered into” before, after, or at the time of filing the Certificate of Formation.⁴ You don’t file it with the state. It’s an internal document among the members that sets ownership percentages, how profits and losses are split, how decisions get made, and what happens if a member leaves.

Put it in writing. Alabama’s LLC statute lets an operating agreement expand, restrict, or eliminate certain fiduciary duties among members, but only if the agreement is written.⁸

Member-Managed or Manager-Managed

The agreement should also state how the LLC will be run. In a member-managed LLC, every owner participates directly in daily operations. In a manager-managed LLC, one or more designated managers handle operations while other members are passive investors who vote only on major questions like mergers or dissolution. Manager-management fits better when some owners don’t want a role in daily decisions.

Get an EIN From the IRS

Once the state approves your Certificate of Formation, apply for an Employer Identification Number from the IRS. Your LLC uses the EIN for tax filings, hiring, and opening a business bank account, and banks typically require one even for single-member LLCs with no employees.⁹

Applying online through the IRS website is fastest and gives you the number immediately. You can also apply by fax or mail using Form SS-4.⁹ There’s no fee.

File the Initial Business Privilege Tax Return

Alabama imposes a business privilege tax on LLCs, calculated on the company’s net worth. A newly formed LLC files an initial return (Form BPT-IN) with the Alabama Department of Revenue within two and a half months of formation.¹⁰

For tax years beginning after December 31, 2023, any LLC whose calculated business privilege tax comes to $100 or less is fully exempt and doesn’t need to file a return at all.¹¹ Because the tax is tied to net worth, most brand-new LLCs fall under the threshold and owe nothing. LLCs above it still file the initial return and pay the calculated amount.

Alabama LLCs are not required to file an annual report. Starting in 2024, annual reports are required only for domestic and foreign for-profit corporations and professional corporations, and the Department of Revenue won’t accept annual reports from LLCs.¹¹

Choose a Federal Tax Classification

The IRS assigns your LLC a default tax classification based on how many members it has. A single-member LLC is treated as a disregarded entity, so the owner reports business income and expenses on their personal return. A multi-member LLC defaults to partnership taxation, filing an informational return while income flows through to the members.¹²

You can change your classification by filing IRS Form 8832 to elect corporate taxation.¹³ If you elect corporate treatment and then want S-corporation status, which preserves pass-through taxation while potentially reducing self-employment taxes, you’ll also file Form 2553. Talk with an accountant before making an election; the tax consequences run in both directions.

After Formation

Open a Business Bank Account

Once you have the filed Certificate of Formation and EIN, open a dedicated business bank account. Keeping personal and business finances separate protects the liability shield your LLC provides. Mixing funds gives a court reason to decide the LLC is a formality and hold you personally responsible for business debts. Most banks ask for the Certificate of Formation, EIN confirmation letter, and operating agreement.

Local Business Licenses

Registering with the Secretary of State doesn’t give you permission to operate locally. Alabama counties and municipalities often require separate business or privilege licenses, and the specifics depend on your industry and location. Check with both the county and city where you’ll operate.

Foreign Qualification in Other States

If your Alabama LLC has employees, an office, or property in another state, you may need to register there as a foreign LLC. Selling online to out-of-state customers usually doesn’t trigger it; hiring a remote employee who works from another state often does. Each state defines “doing business” a bit differently, so check the rules wherever you have a physical presence or personnel.

Federal Beneficial Ownership Reporting

The federal beneficial ownership reporting requirement no longer applies to Alabama LLCs. As of March 2025, FinCEN has exempted all entities created in the United States, and only companies formed under foreign law and registered to do business in a U.S. state must report.¹⁴ The rule could change through future rulemaking, so it’s worth checking back periodically.

1
Alabama Legislature. Code of Alabama Section 10A-1-5.06
2
Alabama Secretary of State. LLCs
3
Alabama Legislature. Alabama Code 10A-1-5.31 – Designation and Maintenance of Registered Agent and Registered Office
4
Alabama Legislature. Alabama Code 10A-5A-2.01 – Formation
5
Alabama Secretary of State. Domestic Limited Liability Company Certificate of Formation
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Alabama Secretary of State. Fee Schedule
7
Alabama Secretary of State. Domestic Limited Liability Company Certificate of Formation
8
Alabama Legislature. Alabama Code 10A-5A-1.08 – Limited Liability Company Agreement
9
Internal Revenue Service. Instructions for Form SS-4
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Alabama Department of Revenue. Alabama Business Privilege Tax
11
Alabama Department of Revenue. Important Changes to the 2024 Business Privilege Tax Filing Requirements
12
Internal Revenue Service. Single Member Limited Liability Companies
13
Internal Revenue Service. About Form 8832, Entity Classification Election
14
FinCEN.gov. FinCEN Removes Beneficial Ownership Reporting Requirements for U.S. Companies and U.S. Persons