🐘 How to Start an LLC in Alabama (2025 Guide)
Learn how to start an LLC in Alabama, This complete 2025 guide walks you through each step—from naming your LLC to filing with the Alabama Secretary of State.
Starting an LLC in Alabama is a smart move for entrepreneurs seeking personal asset protection, tax flexibility, and simplified compliance. Whether you’re launching a solo venture or a multi-member business, this step-by-step guide covers everything you need to know about Alabama LLC formation in 2025—from costs and paperwork to ongoing requirements. Let’s dive in!
✅ Overview: Forming an Alabama LLC
Starting a Limited Liability Company (LLC) in Alabama is a smart move for entrepreneurs who want liability protection and business flexibility. This guide covers everything you need to form an Alabama LLC legally and efficiently.
📝 Estimated time to form: 10–15 minutes online
💸 Filing cost: $208 (as of 2025)
🤔 Why Choose an LLC in Alabama?
| Benefit | Description |
|---|---|
| 🛡️ Asset Protection | Protects your personal assets from business debts |
| 💼 Business Credibility | Enhances professional trust and legitimacy |
| 🔄 Tax Flexibility | Choose between sole proprietorship, partnership, S or C corp |
| 🧾 Fewer Formalities | Less red tape than corporations |
| 💡 Ideal for Startups | Quick, low-cost setup |
🧭 Step-by-Step: How to Start an Alabama LLC
1. 🏷️ Choose a Name for Your Alabama LLC
Must include “LLC”, “L.L.C.” or “Limited Liability Company”Name must be unique and distinguishable from other Alabama business entities
🔎 Use the Alabama Business Name Search to check availability.
2. 🧑💼 Appoint a Registered Agent in Alabama
Your LLC must have a Registered Agent with a physical address in Alabama. This person or company receives legal documents on your behalf.
✅ You can be your own agent or hire a professional Registered Agent service.
3. 📝 File the Alabama Certificate of Formation
Submit the Certificate of Formation (aka Articles of Organization) online or by mail to the Alabama Secretary of State.
Filing fee: $208 (includes probate judge + state fees)
Must include: LLC name, address, Registered Agent info, and member info
📬 File online or by mail via your local county probate judge’s office.
4. 📜 Create an Alabama LLC Operating Agreement
Although not required by Alabama law, an Operating Agreement helps clarify:
Member roles and responsibilities
Profit-sharing structure
Management process
📝 It’s a crucial internal document for both single-member and multi-member LLCs.
we offer free templates for both member-managed and manager-managed LLCs.
5. 🆔 Get an EIN from the IRS
Required if:
You have employees
You open a business bank account
You’re taxed as a partnership or corporation
🎯 Apply online with the IRS for free at irs.gov.
6.🧾 Apply for Alabama Business Licenses
Some businesses in Alabama need:
State-level licenses (e.g., contractors, food)
County/municipal business licenses
7. 💼 Open a Business Bank Account
Keep personal and business finances separate. You’ll need:
EIN
Certificate of Formation
Operating Agreement
8. 📄 Register for Alabama State Taxes
Depending on your business type, you may need to:
Register for state sales tax
Set up Withholding Tax or Business Privilege Tax
Use the My Alabama Taxes portal
9. 📆 File Your Alabama Annual Report
Good news — Alabama doesn’t require a separate annual report, but:
You must file a Business Privilege Tax Return (Form PPT) annually
First return is due 2.5 months after formation
🔍 People Also Ask
How long does it take to start an LLC in Alabama?
1–2 business days (online) or 1–2 weeks by mail.
How much does it cost to start an LLC in Alabama?
$200 to file the Certificate of Formation + $25 for name reservation.
💵 Alabama LLC Costs (2025)
| Item | Cost |
|---|---|
| Name Reservation (optional) | $28 |
| Certificate of Formation | $208 |
| Registered Agent (if hired) | $100–$150/year |
| Annual Business Privilege Tax | Varies (min $100) |
| EIN (from IRS) | Free |
Open a Business Bank Account: Separate personal and business finances.
Obtain Licenses: Check local requirements (e.g., Alabama Business License Directory).
Annual Compliance: File a Business Privilege Tax Return and Annual Report by April 15 each year ($50 minimum).
🏛️ Alabama Secretary of State – LLC Contact Info
Website: sos.alabama.gov
Business Services Division: (334) 242-5324
Mailing Address:
Secretary of State – Business Services
P.O. Box 5616
Montgomery, AL 36103-5616
❓ FAQs - Alabama LLC
1. Do I need a business license in Alabama?
Yes, most cities and counties in Alabama require a local business license.
2. What is the Alabama Business Privilege Tax?
An annual tax required for all Alabama LLCs. The minimum is $100.
3. Can I be my own Registered Agent in Alabama?
Yes, if you have a physical address in Alabama and are available during business hours.
4. Do I need an EIN for my Alabama LLC?
Yes, if you have employees or more than one member.
5. Is an Operating Agreement required in Alabama?
No, but it’s highly recommended for internal governance.
6. What’s the difference between Articles of Organization and Certificate of Formation?
They are the same document in Alabama—formally called the Certificate of Formation.
7. Can I reserve an LLC name in Alabama?
Yes, for a $28 fee, valid for one year.
8. Do Alabama LLCs need to file annual reports?
Yes, through the Business Privilege Tax return.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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contact details
- support@tostartanllc.com
- +1 (646) 347-3833
- 1494 State St, Schenectady, NY 12304,
