State hub · Alabama
Alabama LLC true cost (2026)
Alabama state side: $200 formation filing, $0 for No SOS annual report for LLCs in the 3-year model, ~$228 state fees over three years (methodology below) — #23 of 51 on the cheapest-states ranking. Provider markup is separate — use the table for formation/RA path + state fees.
Alabama state filing fees
These are state fees — not Northwest / ZenBusiness / Bizee / LegalZoom service fees. The collecting agency is Alabama Secretary of State, Business Entities Division. Filings go through www.sos.alabama.gov/business-entities.
| Item | Amount | Notes |
|---|---|---|
| Articles / Certificate of Formation | $200 | Certificate of Formation $200 (Ala. Code § 10A-1-4.31; SOS fee schedule and LLC page). Mandatory Certificate of Name Reservation before formation: $25 by mail or $28 online (credit card). Online name reservation $28 included in 3-year math as a one-time formation adjunct. |
| No SOS annual report for LLCs | $0 typical | Alabama LLCs have no Secretary of State annual report. Corporate SOS annual report was repealed by Act 2024-213 (eff. Oct 1, 2024) and did not apply to LLCs. Business Privilege Tax (Form PPT) is a separate Department of Revenue obligation only if calculated tax exceeds $100; entities at or below $100 are exempt from filing and payment for recent tax years. |
| 3-year state subtotal (model) | $228 | Certificate of Formation $200 + online name reservation $28 + $0 SOS annual = $228, assuming Business Privilege Tax remains at or below the $100 exemption threshold (typical for small net-worth LLCs). County business privilege licenses and BPT above $100 excluded. |
When Alabama actually bills you
Alabama's recurring filing is due N/A — put it in a calendar the day you form, because the state will not chase you before it penalises you.
| Point in time | What Alabama charges | Amount | Running total |
|---|---|---|---|
| At formation | Articles / Certificate of Formation | $200 | $200 |
| Year 1 cycle | No SOS annual report for LLCs (no charge in this model) | $0 | $200 |
| Year 2 cycle | No SOS annual report for LLCs (no charge in this model) | $0 | $200 |
| Year 3 cycle | No SOS annual report for LLCs (no charge in this model) | $0 | $200 |
Provider + Alabama state (3-year)
Provider totals from the national comparison (formation + RA Y1–Y3, state fees excluded there) plus the Alabama state subtotal of $228.
| Provider | Plan | Provider 3-yr | + state |
|---|---|---|---|
| northwest | Formation $39 (RA Y1 included) | $289 | $517 |
| zenbusiness | Starter $0 + RA add-on | $497 | $725 |
| bizee | Basic $0 (RA Y1 free) | $298 | $526 |
| legalzoom | Basic $0 + RA $249/yr | $747 | $975 |
Partner link — we may earn a commission at no extra cost to you. Prices above are researched from public pages, not supplied by the provider. How this site makes money.
How Alabama ranks against the other 50 charters
Across the 51 jurisdictions covered on this site, Alabama sits at #23 — the 23rd cheapest three-year state charter — at $228 in Secretary of State and revenue-department dollars. That is $193 more than Montana, the cheapest charter in the ranking ($35), $52 below the $280 median, and $2,282 less than California at $2,510. In plain terms, Alabama lands in the cheaper half of the table.
Ranking caveat for Alabama: Exact BPT for a given LLC depends on net worth apportionment; baseline assumes exemption at ≤$100 calculated tax.
- Just cheaper: New York ($209), Wisconsin ($205).
- Just pricier: Virginia ($250), Kansas ($265).
- Full table: all 51 states ranked by 3-year state fees — including where the ranking flips once you add a professional registered agent.
Registered agent (Alabama)
- Alabama registered agent and registered office street address required; name reservation must be obtained before formation documents are accepted.
Put the agent next to the state's own bill: three years of Alabama state fees is $228, while the cheapest provider path in our national 3-year comparison runs $289 (Formation $39 (RA Y1 included)) and the most expensive runs $747 (Basic $0 + RA $249/yr) — a $458 spread for the same statutory job. On the cheapest path the service, not Alabama, is about 56% of your three-year outlay. Choosing the agent well is usually a bigger lever than choosing the state.
Gotchas (fact-based)
- Name reservation is mandatory and separate from the $200 formation fee.
- County business privilege licenses may still be required annually even when state BPT is exempt.
- If net worth drives BPT above $100, Form PPT filing and tax apply (variable; not in baseline 3-year total).
Who Alabama is for / not for
Often a fit when…
- Small Alabama LLCs that qualify for the BPT ≤$100 exemption and want no SOS annual report.
Often a poor fit when…
- High net-worth entities expecting material Alabama Business Privilege Tax, or filers who need formation without a prior name reservation step.
Orientation only — not legal advice.
Common questions about Alabama LLC cost
How much does it cost to form an LLC in Alabama?
$200 to Alabama Secretary of State, Business Entities Division for the formation filing. Certificate of Formation $200 (Ala. Code § 10A-1-4.31; SOS fee schedule and LLC page). Mandatory Certificate of Name Reservation before formation: $25 by mail or $28 online (credit card). Online name reservation $28 included in 3-year math as a one-time formation adjunct. That is the state charge only. A formation service is a separate bill on top: Formation $39 (RA Y1 included) works out to $39 in year one, versus $249 on the most expensive path we track.
What are the ongoing Alabama LLC fees after year one?
$0 in recurring No SOS annual report for LLCs charges under the modelled scenario (N/A). Alabama LLCs have no Secretary of State annual report. Corporate SOS annual report was repealed by Act 2024-213 (eff. Oct 1, 2024) and did not apply to LLCs. Business Privilege Tax (Form PPT) is a separate Department of Revenue obligation only if calculated tax exceeds $100; entities at or below $100 are exempt from filing and payment for recent tax years. Recurring state charges are what make a low formation fee misleading — they are the reason this site models three years instead of one.
What does a Alabama LLC really cost over three years?
$228 in Alabama state fees, plus whatever your provider charges. With the cheapest tracked path that is $517 all-in over three years; with the most expensive it is $975 — a $458 difference that has nothing to do with Alabama.
Do I need a registered agent in Alabama?
Yes. Alabama registered agent and registered office street address required; name reservation must be obtained before formation documents are accepted. On the money side, the four providers tracked here charge $0–$249 in year one for formation plus the agent, then $125–$249 a year in agent renewal after that — separate from every Alabama figure above.
Is Alabama a cheap state to form an LLC?
On charter cost alone, Alabama ranks #23 of 51 at $228 over three years, against a $35 floor and a $2,510 ceiling. But cheapest charter is not the same as cheapest outcome: if you operate somewhere else you will likely foreign-qualify there and pay that state's fees and taxes too. See the full 3-year state fee ranking for the comparison.
How the Alabama three-year number is built
Certificate of Formation $200 + online name reservation $28 + $0 SOS annual = $228, assuming Business Privilege Tax remains at or below the $100 exemption threshold (typical for small net-worth LLCs). County business privilege licenses and BPT above $100 excluded. Figures are re-derived from the cited Alabama sources rather than copied from other guides.
Deliberately excluded from the Alabama state subtotal:
- Professional registered agent fees (same shopping problem in every state)
- County newspaper publication (NY, AZ, and similar — variable)
- Card / portal convenience fees unless fixed on the SOS schedule
- Expedites, name reservations, certified copies, foreign qualification
- Income / sales / payroll taxes and variable gross-receipts tiers above a stated floor
Unverified / confirm before filing
- item: unverified — check source —
- Re-check live Alabama Secretary of State, Business Entities Division fee schedules — amounts change.
Sources (official)
- Alabama SOS LLC page (formation $200; name reservation required)
- Alabama SOS Fee Schedule PDF
- Alabama Domestic LLC Certificate of Formation form
- Alabama Domestic Entity Name Reservation form ($25/$28)
- Alabama DOR Business Privilege Tax Form PPT instructions (2026)
- Alabama HB230 enrolled (Act 2024-213; corporate annual report repeal)
Keep comparing
- Cheapest states to form an LLC (2026)
All 51 charters ranked by three-year state fees — see exactly where Alabama's $228 lands.
- LLC formation true 3-year cost: Northwest vs ZenBusiness vs Bizee vs LegalZoom
The provider side of the Alabama math, with the upsells worth skipping.
- All 51 state hubs
Same fee model, state by state.