Alabama LLC Cost: Average Fees Explained

Alabama puts the biggest line item on the formation itself. The Certificate of Formation carries a larger state fee than in many neighboring states, and the cost of keeping the LLC active depends on a tax that sources describe in two different ways.

Fees on this page come from the sources named in each table and were checked on Oct 11, 2026. Alabama fees can change, so confirm current amounts with the Alabama Secretary of State before you file.

The Certificate of Formation costs $200. A name reservation is a separate, smaller charge, and the price depends on how you submit it.

Filing online for the name reservation costs $28, while the mail option costs $25. The headline range at the top of this page combines a reservation with the Certificate of Formation, which is why it sits just above the formation fee alone.

If you are ready to file, a reservation is optional. Search the Secretary of State's business name records first. Reserve a name only if you need to hold it while you sort out partners, a bank, or a lease.

This is where the sources disagree, so the page shows both figures instead of picking one. LLC University lists a minimum of $50/yr for the annual report and privilege tax together. Inc Authority lists a Business Privilege Tax minimum of $100/yr.

The two numbers may describe different things. One may count a combined filing and the other only the tax, or one may reflect a different tax year. Neither source is treated here as the final word.

The Business Privilege Tax is a tax, not a filing fee, and what an LLC owes can depend on its net worth and how it is taxed. Ask a licensed CPA what your LLC will owe, then check the amount against the Alabama Department of Revenue.

Every Alabama LLC needs a registered agent with an address in the state. You can act as your own agent if you live there and are available during business hours. Otherwise a commercial service typically costs $100 – $300/yr, per LLC University.

Compare renewal pricing, not just the first-year offer. A cheap introductory rate that jumps at renewal changes the real yearly cost.

Published totals cluster around the same range, but they are not identical.

The first two sources land above the required state fees alone. A higher figure may include a processing charge, a county-level cost, or a service fee, and the sources do not always say which. The third figure covers required state fees only. When you compare quotes, ask what each number includes before you treat the gap as a real difference in state cost.

Some costs come up only in certain situations.

• A Certificate of Compliance costs $14.
• A Certificate of Existence ordered online costs $28.
• A DBA, or trade name, costs $30.
• Registering an out-of-state LLC to do business in Alabama costs $150.

A Certificate of Existence is the document banks and other states usually ask for as proof the LLC is active. Order one when someone asks, not in advance.

Filing directly with the state means you pay the state fees and nothing more. A formation service adds its own charge and often bundles a registered agent for a year. That convenience is real, but it is also where totals drift above the state fee.

If you have co-owners, a written operating agreement is worth discussing with a licensed attorney. Alabama does not make it the headline cost, but it records how decisions, profits, and exits are handled.

Alabama quotes can look alike and still cover different things, so ask each provider the same short list. Does the price include the Certificate of Formation fee, or only the service charge on top of it? Is a name reservation bundled in? Is a registered agent included, and for how long before it renews at a higher rate?

Ask the same questions of any package that advertises a low formation price. A low headline often leaves out the state fee, which is the largest single item on this page. Add up the state fee, the first year of agent service, and the first annual obligation, then compare totals instead of headlines.

It also helps to keep a record of what you paid and when. Alabama's annual obligation recurs, and the cost of a missed one is easier to avoid than to fix.

Treat the annual obligation as a fixed cost from day one. Because sources disagree on the minimum, check the current requirement with the Alabama Department of Revenue and the Secretary of State, and keep a note of the due date. Keep your registered agent's address current as well, since official notices go to that agent.