Step 1 · Form the entity
How to form an LLC in Alabama (2026)
File an Alabama LLC Certificate of Formation for $200 after a name reservation ($28 online). Keep an AL registered agent; no SOS annual report for LLCs.
File a domestic Alabama LLC with the Alabama Secretary of State when you live in Alabama and will do the work from Alabama. Reserve the name first ($28 online, $25 paper), then file the Certificate of Formation for $200. Five steps: confirm Alabama facts, reserve the name, file with a registered agent, pay $200, then get a free EIN. Compare structures on LLC vs sole proprietorship.
How much does it cost to form an LLC in Alabama?
The Alabama Secretary of State lists the domestic LLC Certificate of Formation at $200.00, re-checked 14 October 2026. You must reserve the name first: $28 online or $25 on paper, per the SOS brochure. The formation form notes the SOS passes $100 of the $200 to the county of your registered agent’s office.
How do I file an Alabama Certificate of Formation?
Reserve the name through Alabama SOS Business Services, then mail the original Certificate of Formation, one copy, the name reservation certificate, and the $200 fee to P.O. Box 5616, Montgomery, AL 36103. The SOS charges $30 for a dishonored check. Keep the stamped copy.
Does an Alabama LLC need a registered agent?
Yes. The Alabama Certificate of Formation must name a registered agent with an Alabama registered office for service of process. The agent goes on the public record, and the agent’s county receives $100 of the formation fee, per the SOS form. DIY versus commercial tradeoffs: Registered agent basics for a new LLC.
Does an Alabama LLC file an annual report?
Not with the Secretary of State. An Alabama Department of Revenue notice says that from 1 January 2024 only for-profit and professional corporations file the $10 SOS annual report, and reports from other entities are not accepted. Separately, ADOR’s Business Privilege Tax return is not required when the calculated tax is $100 or less.
Do I get an EIN before or after the Alabama LLC?
After. The IRS tells applicants to form the state entity first, and the EIN application on IRS.gov is free. Apply the same day the Secretary of State accepts your Certificate of Formation if you need a business bank account right away. Walkthrough: Get an EIN; then open a first business checking account.
Does an Alabama LLC need newspaper publication?
No. The Alabama Secretary of State Certificate of Formation form, LLC page, and domestic entity brochure include no newspaper publication step for a standard domestic Alabama LLC. Skip any “Alabama LLC publication” add-on a vendor tries to sell you. New York is different and does require publication; see How to form an LLC in New York.
Alabama LLC fee table (re-checked 14 October 2026)
| Item | Amount | Notes |
|---|---|---|
| Name reservation (online) | $28 | Required before formation; $25 paper |
| Certificate of Formation | $200 | $100 goes to the registered agent’s county |
| SOS annual report | None for LLCs | Corporations only ($10), per ADOR |
| Business Privilege Tax return | Not required if tax ≤ $100 | ADOR, not SOS |
| Foreign LLC Application for Registration | $150 | Out-of-state LLCs only |
| EIN | $0 | Free on IRS.gov |
Fees re-checked on the Alabama SOS LLC page, Domestic Business Entities brochure, Certificate of Formation form and ADOR 2024 privilege-tax notice on 14 October 2026. If the portal shows a different checkout total, pay what the portal shows and keep the receipt.
DIY or a formation shop. The walkthrough on this page is for Alabama SOS Business Services Certificate of Formation. If you would rather pay a shop to handle the filing paperwork, compare these:
| Service | Best for |
|---|---|
| Swyft Filings | Fast online filing with compliance reminders |
| Bizee | Budget-minded formation packages |
| Zenind | Formation bundled with registered agent |
| MyCompanyWorks | Simple, no-frills formation filing |
| MyCorporation | LLC formation plus DBA, EIN and registered agent add-ons |
| CorpNet | Formation packages with a year of registered agent and EIN bundled |
| BizFilings | Established filing service (Wolters Kluwer) |
| doola | Non-US founders forming a US LLC |
| Harbor Compliance | Registered agent and multi-state compliance |
| Business Anywhere | Registered agent + virtual business mailbox |
| ZenBusiness | All-in-one formation packages |
Prices, registered agent renewals, and checkout traps side by side: LLC formation services compared by fit.
Optional branches (not always required to file)
File in Alabama if the work is in Alabama
A domestic Alabama LLC is organized by filing a Certificate of Formation with the Alabama Secretary of State, Business Services Division (Title 10A). Online filing runs through SOS Business Services Domestic Formation; paper mail is also accepted. A company already formed somewhere else that wants to transact business in Alabama files a foreign LLC Application for Registration — a different instrument (SOS lists $150).
Filing in Wyoming, Delaware, or Georgia does not move Alabama work out of Alabama. A foreign entity that transacts business here still needs an Alabama registered agent and Alabama foreign registration, plus the formation state’s agent and report. Home-state filing is the cheaper default for a one-state operator. Multi-state registration overview: Foreign LLC and certificate of authority.
Do not try to hide from the Alabama Secretary of State. An LLC is a public filing. The registered agent’s name and address go on the record so the state and private parties can reach the company. Privacy products that promise invisibility are selling something the statute does not offer.
What to have on the desk before opening SOS Business Services
Checked against the SOS LLC page, Domestic Brochure, and Certificate of Formation form on 14 October 2026:
- A distinguishable LLC name containing Limited Liability Company, L.L.C., or LLC. Search SOS business entity records before ordering letterhead.
- A Certificate of Name Reservation obtained before formation (required). Brochure: $25 paper / $28 online.
- Certificate of Formation details, including the registered agent and Alabama address for that agent.
- Registered agent who can accept service of process in Alabama. See Registered agent basics for a new LLC.
- Organizer / payment method. Credit card paths may add a convenience fee shown at checkout — pay what the portal shows.
No newspaper or other advertising is required on the standard domestic Certificate of Formation path. Series LLC and professional entities are out of scope for a default 1099 single-member LLC on this page.
File through Alabama SOS Business Services
The primary path on this page is SOS Business Services at sos.alabama.gov (Domestic Formation online) or mail to the Business Entities Division. File the Certificate of Formation with the name reservation certificate and pay. The SOS LLC page lists $200.00 for domestic LLC formation.
Optional certificate copies or other line items belong on the current form and checkout screen — this page does not invent add-ons. Pay what the portal shows and keep the receipt.
After the Certificate of Formation is filed
Formation with the SOS is not an Alabama Department of Revenue tax account, a sales-tax license, a city license, or a professional license. Those have their own filings.
The IRS tells applicants to form the state entity first, then obtain an Employer Identification Number. That application on IRS.gov is free.
Next: the money path. After the Certificate of Formation is accepted:
- Get an EIN — free on IRS.gov after the state entity exists
- Open business checking — park operating cash in the LLC’s name
- First brokerage — only if the work needs one
Full first-30-days desk list: After you form an LLC. Setup overview on the setup checklist. Formation shops, if you want one instead of DIY, stay in the callout above.
Alabama does not require an operating agreement to be filed with the Certificate of Formation. A written agreement still matters between members. Banks often ask for one anyway. See LLC operating agreement basics.
No SOS annual report for LLCs — privilege tax is separate
Alabama does not require a Secretary of State annual report for a limited liability company. ADOR’s 4 Jan 2024 notice: SOS Annual Reports are only for domestic and foreign for-profit corporations and professional corporations; filings from other entity types are not accepted.
Do not conflate that with Alabama Business Privilege Tax administered by the Department of Revenue (Form PPT / related returns). For taxable years beginning after 31 Dec 2023, taxpayers whose calculated privilege tax is $100 or less are not required to file. When a return is due, it is an ADOR filing — not an SOS annual report. Confirm thresholds and due dates on revenue.alabama.gov. This page does not compute anyone’s tax.
Cross-state renewals (for states that do charge SOS reports): LLC annual report and annual registration. Overview of admin-dissolve vs reinstate if standing is later lost: Reinstate an administratively dissolved or revoked LLC.
What this page does not cover
- Professional entities, series LLC, conversions, or foreign registration of an out-of-state company beyond the fee citation above.
- Sales-tax, employer withholding, unemployment, Workers’ Compensation, or local business licenses.
- Computing Business Privilege Tax or any ADOR return — confirm on revenue.alabama.gov.
- Whether an S corporation election is worth the payroll. That is a CPA conversation after there is real net income.
- Any promise that an LLC prevents a personal guarantee on a bank account or a business card. It usually does not.
- Telling a Georgia operator to file Alabama as a sophistication upgrade.
- Voluntary dissolution / termination — confirm the current SOS winding-up instrument and fee before filing; see Dissolve or cancel an LLC.
- Vendor convenience fees or portal line items that are not printed as SOS filing fees on the sources above.
Sources
- Alabama SOS — LLCs (Domestic Certificate of Formation $200; Foreign Application for Registration $150) — as of Re-checked 14 October 2026
- Alabama SOS — Domestic Business Entities Brochure (Name Reservation $25 paper / $28 online; formation $200) — as of Re-checked 14 October 2026
- Alabama SOS — Domestic LLC Certificate of Formation form (processing fee $200) — as of Re-checked 14 October 2026
- Alabama Department of Revenue — SOS Annual Report limited to for-profit/professional corporations; LLC AR not accepted; privilege tax separate (notice 4 Jan 2024) — as of Re-checked 14 October 2026
- Alabama SOS — Business Entity Filings — as of 22 September 2026
- IRS — Get an employer identification number (EIN is free; form the state entity first) — as of Re-checked 14 October 2026