It costs $208 to form an Alabama limited liability corporation (LLC) online. When submitting the LLC’s Certificate of Formation, this fee is paid to the Alabama Secretary of State.
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How Much Does an Alabama LLC Cost?
Fee for filing an Alabama LLC online: $208
The major expense of creating an LLC is the $208 filing fee with the Alabama Secretary of State for your LLC’s Certificate of Formation.
Registration Fee
You may be your own registered agent in Alabama, but employing a registered agent service keeps your firm in compliance, informs you of critical filing dates, and helps you avoid late fines.
$100+ Alabama Business Privilege Tax and Annual Report
Every LLC that does business in Alabama is required to file an annual PPT form, or privilege tax form for pass-through businesses, by the third week of April. This tax ranges from 0.00025 percent to 0.00175% of your LLC’s net assets.
The actual tax rate relies on your business’s profits during the preceding taxable year. The minimal amount of Business Privilege Tax is $100.
Varies for Alabama Business Privilege License
In Alabama, all companies must get an annual licence to do business known as the Business Privilege License. You must obtain a licence in every county where you conduct business. Licenses may be obtained through your county’s Probate Judge. Fees vary by county.
How Much Does it Cost to Form a Foreign LLC in Alabama?
If you currently have an LLC established in another state and want to expand into Alabama, you must register your LLC as a foreign LLC in Alabama.
An Alabama foreign LLC registration costs $156 online or $150 by mail. A foreign LLC may be registered in Alabama by submitting a Foreign Limited Liability Application for Registration to the Alabama Secretary of State. This may also be done via the mail.
Business Permits and Licenses
Depending on your industry and geographic area, your company may need federal, state, and municipal permits/licenses to operate lawfully in Alabama. This is true regardless of whether you create an LLC or another sort of company structure.
Other Fees for Filing an LLC
There are several extra costs involved with forming an LLC:
Reservation of LLC Name
Fill out the Name Reservation Request Form for Domestic Entities to reserve your name for up to 12 months prior to LLC formation. The filing cost is $28 for online filings and $25 for mail-in filings.
Foreign LLC Name Reservation
Fill out the Name Reservation Request Form for Foreign Entities to reserve your name for up to 12 months prior to the creation of your LLC. The filing cost is $28 for online filings and $25 for mail-in filings.
DBA (Doing Business As) Name
To create a name different than your official LLC company name, file a trade name application. The filing cost is $30 for online filings and $31.20 for postal filings.
Document Copies with Certification
Obtain certified copies of your Alabama business paperwork by purchasing from the Secretary of State and paying $10 + $2 per page
Compliance Certificate
This document, also known as an Alabama certificate of good standing, may be obtained by ordering from the Department of Revenue and paying the $14 charge. Banks and credit organisations often request this paperwork.
How to Form an Alabama LLC on Your Own
Creating an LLC on your own is simple; just follow the five procedures outlined below.
Five Simple Steps to Forming an LLC in Alabama
Step 1: Give Your Alabama LLC a Name
Step 2: Choose a Registered Agent
Step 3: Submit your Certificate of Formation.
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 1: Give Your Alabama LLC a Name
When you create your Alabama LLC, you’ll need to select a name that:
Is available for usage in the state of Alabama
Fulfills Alabama’s naming requirements
Is accessible as a web domain
Recommended: Visit our Start an LLC in Alabama article for complete naming restrictions and directions for registering a company name in Alabama.
Not sure what to call your company? Check out our free LLC Name Generator and How to Name a Business guide.
We suggest checking online to see whether your company name is accessible as a web domain. Even if you don’t intend to construct a company website right away, you may wish to purchase the URL to prevent others from gaining it
Step 2: Select a Registered Agent.
In Alabama, all LLCs must select a registered agent. A registered agent is your LLC’s primary point of contact with the state. Most significantly, they are in charge of receiving service of process in the event that your company is sued.
Your registered agent in Alabama must:
You must be at least 18 years old.
Have an Alabama physical address
Be accessible during regular business hours to receive service of process
Step 3: Submit your Certificate of Formation.
The Alabama Certificate of Formation is a document that must be submitted with the Alabama Secretary of State in order to establish an LLC. A Certificate of Formation costs $208 to file online.
4. Create an Operating Agreement
An operating agreement, also known as a limited liability company agreement in Alabama, is not necessary for Alabama LLCs, although it is recommended.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
Step 5: Obtain an EIN
What exactly is an EIN? An EIN or Employer Identification Number is a nine-digit number provided by the Internal Revenue System (IRS) to identify a firm for tax reporting reasons. An EIN is effectively a company’s Social Security number (SSN).
Why do I need an EIN? An EIN number is necessary for the following
Establishing a business bank account
Employee Recruitment
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