Forming an LLC in Alabama costs $200 to file with the state. Ongoing, you file: Business Privilege Tax return (min $50), ~April 15. Separately, Business Privilege Tax (min $50). The Business Privilege Tax doubles as the annual filing; mid-cost overall.
Alabama LLC at a glance
| State filing fee | $200 |
| Processing time | ~1-2 weeks online; expedited available |
| Annual/biennial report | Business Privilege Tax return (min $50), ~April 15 |
| Franchise / annual tax | Business Privilege Tax (min $50) |
| State income tax | Yes |
| State sales tax | 4% |
| Sales-tax economic nexus | $250,000 |
| Registered agent | Required (in-state address) |
| Publication requirement | No |
| Anonymous ownership | Not available (ownership is on record) |
Research snapshot last checked 2026-07-21. Fees and deadlines change - confirm on the Alabama Secretary of State and tax authority before filing.
Does Alabama fit your situation?
Alabama puts ownership on the public record, so it is not the choice if you need anonymity. It levies a state income tax. The Business Privilege Tax doubles as the annual filing; mid-cost overall.
If you do not live or operate in Alabama, remember that forming here while working elsewhere can create a second state registration (foreign qualification) and a second set of fees. For most non-residents the decision comes down to banking acceptance and total cost - see the best-state comparison.
Steps to form in Alabama
- Check name availability and appoint a Alabama registered agent.
- File the Articles of Organization ($200) with the state.
- Get an EIN from the IRS (Form SS-4 by fax or phone if you have no SSN).
- Confirm banking and payment eligibility for your residence country.
- Put the report on a calendar: Business Privilege Tax return (min $50), ~April 15.
Generate your Alabama deadline calendar · Check your US tax obligations
Quick answers
Frequently asked questions
How much does an LLC cost in Alabama?
The state filing fee is $200. Ongoing you file business privilege tax return (min $50), ~april 15. Business Privilege Tax (min $50).
Does Alabama require an annual report?
Yes: Business Privilege Tax return (min $50), ~April 15.
Is Alabama a good state for a non-resident LLC?
The Business Privilege Tax doubles as the annual filing; mid-cost overall. Base the decision on where you actually operate, banking acceptance and total cost, not only the filing fee.