LLC Cost Calculators Alabama

Alabama LLC Cost Calculator

Calculate the total cost to form an LLC in Alabama. Filing fee: $200. No recurring state report fee. Free Alabama LLC cost breakdown.

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$0$2,000

Pre-filled: Compiled multi-state LLC fee survey — pending verification against the state fee schedule

$0$2,000

Pre-filled: Alabama Department of Revenue

$0$500

Additional Details

120

Year 1 Total Cost

$525.00

Estimated • Based on your inputs

Annual Ongoing Cost

$175.00

Detailed Breakdown

5-Year Total Cost$1,225.00
44%
Initial Formation Cost$350.00
13%
Projected Total Cost$1,225.00
44%

Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.

Alabama Quick Facts
5.0% Income Tax Rate
0.37% Property Tax Rate
$66,659 Median Income
85 Cost of Living

How This Calculator Works

Calculation methodology and assumptions

LLC formation costs in Alabama include the state filing fee ($200), any recurring state filing, registered agent fees, and optional costs like an operating agreement. EIN registration with the IRS is free. This calculator provides a comprehensive first-year and multi-year cost projection for forming and maintaining an LLC in Alabama. Alabama LLCs file no Secretary of State annual report. What Alabama levies is a Business Privilege Tax collected by the Department of Revenue, and since the 2024 tax year any LLC whose calculated tax is $100 or less is fully exempt and need not file the return at all. Larger LLCs owe the calculated amount above $100. Alabama also requires a $25 name reservation before formation, on top of the $200 certificate of formation.

Key State Information

Alabama LLC filing fee: $200. Alabama charges no recurring LLC report fee. Alabama's LLC filing fee is moderate. Alabama does not charge a recurring state report fee for LLCs, though other periodic filings or state taxes may still apply.

Standard financial formulas Pre-filled with documented data Estimates only — not financial advice
Data Source
Alabama Department of Revenue — Business Privilege Tax filing changes
View Original Source | Source record reviewed | Review target: annually

Example Calculation

Let's calculate the cost to form and maintain an LLC in Alabama.

Forming a single-member LLC in Alabama: state filing fee $200, registered agent service (~$125/year), EIN from IRS (free), and a DIY operating agreement (free, or $500-$1,500 with an attorney). Alabama's annual report/franchise tax is $50/year.

Result: Year 1 total: approximately $325 (plus any optional attorney fees). Ongoing annual cost: approximately $175/year. Nationally, filing fees range from $35 (Montana) to $500 (Massachusetts) and recurring state costs range from $0 (several states) to $800/year (California) — so Alabama's cost may be far cheaper, or more expensive, than forming elsewhere. Don't form in Delaware or Wyoming just for their reputation — you'll still need to register as a foreign LLC at home and pay both states.

SC

StateCalc Team

Editorial Team

The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.

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Frequently Asked Questions

How much does it cost to form an LLC in Alabama?

The state filing fee is $200. Including a registered agent ($0 if you serve as your own, $100-$300/year for a commercial service) and an operating agreement (free to write yourself, ~$150 from a template service), expect to pay $200 to $650 to form an LLC in Alabama. Alabama charges no recurring state report fee, so ongoing cost is just your registered agent.

Do I need a registered agent for my Alabama LLC?

Yes, Alabama requires every LLC to have a registered agent with a physical street address in the state. You can serve as your own agent for $0 if you have an Alabama address and are willing to have it appear on the public record, or hire a commercial registered agent service for $100-$300/year.

Does Alabama require an annual report for LLCs?

Alabama does not charge a recurring report fee for LLCs. Alabama LLCs file no Secretary of State annual report. What Alabama levies is a Business Privilege Tax collected by the Department of Revenue, and since the 2024 tax year any LLC whose calculated tax is $100 or less is fully exempt and need not file the return at all. Larger LLCs owe the calculated amount above $100. Alabama also requires a $25 name reservation before formation, on top of the $200 certificate of formation.

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