LLC cost in Alabama
Alabama charges $200 to form an LLC. Over 5 years, state fees come to $200.
Year 1
Years 2 to 5, each year
- Business Privilege Tax (Form PPT / initial BPT-IN) source$0
5-year total$200
Verified Oct 9, 2026
Each fee
- Certificate of Formation (domestic LLC): $200. Once, when you form the LLC. SOS LLC page (read 2026-10-09): 'Secretary of State: $200.00'. The SOS fee schedule also lists $200 under Ala. Code 10A-1-4.31. Excluded by policy: the SOS requires a Certificate of Name Reservation (10A-1-4.02(f)) before formation; the fee schedule lists it at $25. Source
- Business Privilege Tax (Form PPT / initial BPT-IN): $0. Every year, starting in year 1. Revenue-dependent (based on Alabama net worth). ADOR 2025 PPT instructions: an LLE files only if the privilege tax due is more than $100. A small LLC therefore owes $0. Threshold: tax due over $100. If owed, the initial return is due 2.5 months after formation, then yearly. Source
Forming in another state instead?
If your business operates in Alabama, forming in another state does not remove the Alabama fees. You register there as a "foreign" LLC ($150) and keep filing its yearly reports. You also pay a registered agent in the other state. We assume $99 a year, a low published price (Harbor Compliance).
| If you live in Alabama | First year | 5-year total |
|---|---|---|
| Form in Alabama | $200 | $200 |
| Form in Wyoming, register in Alabama | $349 | $985 |
| Form in Delaware, register in Alabama | $359 | $2,355 |
Assumes a foreign LLC pays the same yearly Alabama fees as a local one. Try your own numbers.
How to file
You can file with the state yourself: Alabama official filing page. Or pay a formation service to file for you. Services charge their own fee on top of the state fees above.
See our disclosure.
Some Alabama fees could not be checked on a current official fee page. Each fee links to the source we used. Confirm with the state before you file.