We’ve compiled the most common fees so you know exactly what to expect when starting your Alabama LLC.
You have to file a Certificate of Formation and a Certificate of Name Reservation to start your LLC. Fulfilling these filing requirements can be tricky, but we’ll walk you through the process. We can help you get your LLC started quickly and easily with our Alabama LLC Formation Service.
We can help you file your LLC documents in Alabama for just $0.
The following are fees you could see when you start your own LLC in Alabama:
$236: An Alabama Certificate of Formation costs $200, and the Certificate of Name Reservation costs $25.
$100 to $15,000: Once your LLC is up and running, you’ll have to pay state Business Privilege Taxes. The minimum is $100, but the amount of tax you owe depends on your business activities.
Free: You can be your own Registered Agent in Alabama without paying a fee. But keep in mind that this means you have to be available during regular business hours to accept legal notifications. For that reason, many businesses hire a registered agent for a small yearly fee.
It’s important to find a Registered Agent who meets all of Alabama’s legal requirements. We can help you find the right Registered Agent for your LLC with our Alabama Registered Agent Service.
Paying for your Certificate of Formation, Certificate of Name Reservation, and Business Privilege Taxes isn’t always the end of your costs when you’re running an LLC.
To get financing, as well as certain contracts or clients, you might have to present a Certificate of Existence for your LLC. If you apply by mail or in person, the Certificate of Existence fee is $25. If you apply online, the Certificate of Existence fee is $28.
A Certificate of Compliance from the Alabama Department of Revenue tells third parties that your LLC has paid its state taxes and filed its state returns. To obtain a Certificate of Compliance, you need to pay a $14 fee.
A “Doing Business As” name or DBA is any name your business uses that’s different from its official name. Alabama calls this a Trade Name, and your business can have more than one. Using DBAs can be a great way to distinguish and market different branches of your LLC.
You file an Application to Register Trademark, Service Mark or Trade Name for each DBA you want, and each DBA costs $30.
Foreign LLCs are LLCs that someone who doesn’t have an Alabama business address forms within the state. To run your out-of-state LLC in Alabama, you need to file an Application for Registration with the Secretary of State. The filing fee for this document is $150.
You might have to pay fees for:
Whether you pay these fees depends on the nature and location of your business. You might also need to pay these fees at the local, state, and federal levels. With our partners at Business Licenses, LLC, we can give you a Business License Report that breaks down what specific licenses, permits, and registrations your business needs.
For just $0, we can form your Alabama LLC for you in just minutes. No LegalZoom promo code required: Pay just $0 plus filing fees for fast LLC formation in Alabama
Yes. If you don’t pay your fees on time, you could face interest payments, late fees, or legal sanctions. In some cases, failure to pay a fee means your LLC isn’t official and you can’t take advantage of the personal protections the business structure normally provides.
If you can’t pay your filing fees, the Alabama government can refuse to file your formation or licensing documents. Without these documents, your LLC is not official, and you would face the increased liability of running a sole proprietorship or general partnership.
You pay your Certificate of Formation fees to the Secretary of State.
When it comes to the cost to start a business in Alabama, your largest LLC fee is your Certificate of Formation fee, which is $236. Your largest fee might be different based on the kind of business you run, your business location, and your business’s needs.
You can pay the fees using a check, money order, or credit card. If you pay by credit card, you might be charged an additional convenience fee.
The state and the public need to know what to call your new business, and you let them know on your Certificate of Formation. You can get creative when choosing your LLC’s name, but the name must:
Once you pick your name, you need to file a Name Reservation Request form with the Secretary of State.
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Your Registered Agent plays a big role in the success of your LLC. Registered Agents are responsible for receiving service of process and other important legal notices on behalf of your LLC. A Registered Agent has to have a physical address in Alabama, and it’s important that they are consistently available during regular business hours to receive important notices for your LLC.
You can be your own Registered Agent, but that role could tie you to the office in ways that aren’t beneficial for building your business. It’s best to use a Registered Agent service to help you stay compliant.
The main document you need on file to form your LLC is the Certificate of Formation. You can file it with the Secretary of State by mail or online. If you file by mail, you need to include two copies of your Certificate of Formation and a self-addressed, stamped envelope. Mail your Certificate of Formation and filing fee to:
Secretary of State
P.O. Box 5616
Montgomery, Alabama 36103
A Limited Liability Company Agreement (also called an Operating Agreement) can be a great tool for customizing your experience as a business owner. In an Operating Agreement, you and your co-owners (also called members) can write your own rules for how to run your LLC. An Operating Agreement can:
Without an Operating Agreement, you have to run your LLC by the default rules under Alabama law. Alabama’s default rules for running limited liability companies aren’t always ideal because they aren’t specific to the business owner’s needs.
If you want to write your own rules for your LLC but you’re not sure where to start, we can help. Our Operating Agreement Template makes writing your Operating Agreement easy.
Properly paying your LLC’s taxes is vital. If your LLC has more than one member, has employees, or runs as a corporation, it has to have an Employer Identification Number (EIN). EINs come from the IRS and are necessary for certain businesses to pay their federal taxes. Even if your business doesn’t have to have an EIN, having one is ideal for protecting your personal information, since you won’t be using your Social Security number on business tax documents. You also need an EIN to open business bank accounts and acquire business insurance policies.
To get an EIN you have to file paperwork with the IRS. We can handle this for you with our Employer ID Number Service.
Every Alabama business has to pay an annual Business Privilege Tax. For an LLC, the tax is due within two and a half months of the start of the business’s tax year.
If you fail to pay your Business Privilege Taxes on time, you can face interest and penalties. Save yourself a headache and money by using our Annual Report Service to help you stay on top of your LLC’s annual reporting obligations.
With business growth comes changes. If details about your business change, you need to Amend your Certificate of Formation or file other updated paperwork with the government. You can use our Worry-Free Compliance Service to file up to two amendments per year and keep track of your business’s other compliance requirements.
Running your own business can be hard, yet rewarding work. We can help you get your LLC up and running quickly and stay compliant with our large catalog of business formation services. Let us help you save you time and money and give you peace of mind!
Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
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