Excellent
Start Your Alabama LLC with Confidence
Questions? Call (833) 799-4891 to speak with a business specialist who understands Alabama requirements.
Have questions? Call (833) 799-4891 to speak with our business formation experts.
Excellent
Start Your Alabama LLC with Confidence
Questions? Call (833) 799-4891 to speak with a business specialist who understands Alabama requirements.
As seen in
How to Start Your Alabama LLC: 5 Essential Steps
We make forming your Alabama LLC straightforward and worry-free. Here's exactly what you'll do and what it costs – no hidden fees, no surprises.
Your Formation Journey
Alabama LLC costs broken down – state, county, annual fees. Special Requirements: Alabama's unique two-filing process requires name reservation first, then county filing.
Reserve Your Business Name
Alabama requires name reservation before filing. We'll check availability and secure your name.
Appoint Your Registered Agent
Every Alabama LLC needs someone to receive legal documents. You can do this yourself or use our professional service.
File with County Probate Court
Unlike most states, Alabama files through county courts. We handle the entire two-step process for you.
Create Your Operating Agreement
Define how your business runs. While not required, it's essential for protecting your limited liability.
Get Your EIN
Your federal tax ID number – it's free from the IRS and required for banking and taxes.
Complete Cost Breakdown
Choose Your Alabama LLC Formation Package
Perfect for DIYers who just want the essentials
Benefits:
We'll confirm your business name is available
Real help from real humans – top-rated support through phone, chat, or email
Personalized tax-saving tips from a 1-800 Accountant consultant
Smart choice for those who want speed and peace of mind
Benefits:
Everything in Basic, plus more peace of mind
EIN registration so you can open a bank account, hire employees, and start operating
Compliance monitoring to help you meet state deadlines and avoid penalties
Professional operating agreement - protects you if things go sideways, ideal for multiple owners
Best for busy founders who want it all done right
Benefits:
Everything in Standard, plus more value
Skip the lawyer fees, 2 months of unlimited attorney consultations and customizable legal contracts
Hassle-free LLC updates – handled at no extra cost
Privacy protection with a professional business address you can use anywhere
Your Alabama LLC Questions Answered
Your Alabama LLC Questions Answered
Alabama LLC vs. Corporation: Which Is Right for You?
Most Alabama small businesses choose LLCs for simplicity and flexibility. Here's an honest comparison to help you decide.
LLC
Maximum flexibility in management structure
You can structure your LLC however you want, with members managing directly or appointing managers
Pass-through taxation to avoid double taxation
LLC profits and losses pass through to members' personal tax returns, avoiding corporate double taxation
Simpler compliance with fewer formalities
No required board meetings, corporate minutes, or complex record-keeping requirements
Lower annual maintenance costs
Minimal state filing requirements and lower ongoing compliance costs
Ideal for small businesses, consultants, or property owners
Perfect structure for most small businesses that value operational simplicity
Corporation
Ability to raise venture capital or go public
Corporations can issue stock to investors and eventually go public on stock exchanges
Multiple classes of stock for investors
Issue different types of stock with varying rights and preferences for different investor groups
Stock option plans for employees
Attract and retain talent with employee stock option plans and equity compensation
Established corporate structure for credibility
Traditional corporate structure with board of directors provides institutional credibility
Easier ownership transfers via stock sales
Ownership can be easily transferred by selling shares without disrupting business operations
Still unsure about the right choice for your business?
Our business formation specialists understand Alabama requirements and can help you choose the structure that fits your goals.
What to Do After Forming Your Alabama LLC
Once your LLC is officially formed, these essential steps ensure you maintain compliance and set your business up for long-term success.
Open Your Business Bank Account
Separate your business and personal finances immediately to maintain your LLC's liability protection. This separation is crucial because mixing funds (called "commingling") can jeopardize your limited liability status in court. You'll need your EIN confirmation letter, Certificate of Formation, and operating agreement to open the account.
File Your Initial Business Privilege Tax
Submit your initial Business Privilege Tax return within 2.5 months of formation with a minimum payment of $100. This tax is Alabama's unique requirement that replaces traditional annual reports in other states. Missing this deadline results in penalties ranging from $50-$500 and potential administrative dissolution.
Get Required Business Licenses
Secure all necessary local and industry-specific licenses before conducting business. Most Alabama businesses need at least a city or county business license, and many require additional permits based on your business type. Operating without proper licenses can result in fines, business closure, and inability to enforce contracts.
Maintain Your Registered Agent
Keep your registered agent information current and ensure continuous service. Your registered agent receives all legal documents and state correspondence on behalf of your LLC. Any changes to your registered agent must be filed with the Alabama Secretary of State, and a lapsed agent can result in missed legal notices and default judgments.
Track Your Expenses
Maintain detailed records of all business income and expenses from day one. Proper record-keeping not only protects your limited liability status but also maximizes tax deductions and simplifies annual tax preparation. Poor records can lead to disallowed deductions and increased audit risk.
File Annual Business Privilege Tax
Submit your annual Business Privilege Tax return by April 15 each year, even if you owe no additional tax beyond the $100 minimum. This filing keeps your LLC in good standing with the state. Failure to file can result in administrative dissolution and loss of your business's legal protection.
Your Complete Alabama LLC Setup Guide
Your Complete Alabama LLC Setup Guide
Official Alabama Business Resources
Use this directory of official state resources to stay compliant and find support for your Alabama business.
Official Alabama Business Resources
State Resources - Official Alabama Business Resources
Critical Alabama LLC Formation Errors That Cost Time and Money
Critical Alabama LLC Formation Errors That Cost Time and Money
Stay Current with Alabama Business Updates
Get exclusive Alabama business insights delivered monthly including Business Privilege Tax changes and deadlines, new legislation affecting Alabama LLCs, local incentive programs and grants, plus success stories from Alabama business owners.