Alabama LLC Cost
The minimum cost to start a Alabama LLC is $200 in state filing fees. Annual upkeep costs $50 per annual cycle, plus any franchise/privilege tax. Here is the full 2026 breakdown.
One-time formation costs
| Item | Cost |
|---|---|
| Articles of Organization | $200 |
| Name reservation (optional) | typically $10–$50 |
| Certified copy of Articles (optional) | typically $5–$30 |
| Expedited processing (optional) | typically $50–$1,000 depending on tier |
Annual recurring costs
| Item | Cost |
|---|---|
| Annual report | $50 per annual cycle |
| Franchise / privilege tax | Business Privilege Tax: $50 minimum, scales with net worth |
| Registered agent service (optional) | $0–$300/year |
Optional professional services
- Formation service (Bizee, Northwest, LegalZoom): $0–$299 + state fee
- Operating agreement template: $0 (DIY) to $200 (attorney-drafted)
- EIN: $0 direct from IRS — never pay a third party for this
Year-1 minimum spend
If you DIY everything: $250 for state fees in the first year. Add federal taxes, sales tax registration, and any local licenses based on your activity.
Alabama-specific note
Alabama LLCs must file the Business Privilege Tax Return (BPT-IN initial, then annual) with the Department of Revenue separately from any Secretary of State filing.
Frequently asked questions
What is the cheapest way to start an LLC in Alabama?
File the Articles of Organization yourself online with the Alabama SoS for $200 and act as your own registered agent.
What does it cost to keep a Alabama LLC active each year?
Minimum $50 for the annual report, plus any franchise tax owed: Business Privilege Tax: $50 minimum, scales with net worth.
Should I form in Alabama or a different state?
In general, you should form in the state where you actually operate. Forming elsewhere usually requires Foreign Qualification in your home state, which means paying both.
Sources & further reading
Disclaimer: Legal information, not legal advice. For advice about your specific situation, consult a licensed attorney or CPA in your state. See our full disclaimer.