How to Start an Alabama LLC

To form an Alabama LLC (Limited Liability Company), you must file a Certificate of Name Reservation ($25), appoint a registered agent, and submit a Certificate of Formation ($200) with the secretary of state. You’ll also need to draft an operating agreement, file a Beneficial Ownership Information (BOI) report, get an EIN and business bank account, set up your website, get a business phone line—the list goes on.

Find out how to tackle it all on your own with our Do-It-Yourself Alabama LLC Guide. Or, avoid the hassle and start with our Alabama LLC formation package:

• Formation paperwork filed AND state filing fees covered
• Alabama Business Presence, including domain, website, SSL, email, and phone
• A year of registered agent service (just $49/year after the first year)
• A FREE structure-specific operating agreement and other business documents
• Use of our business address on your formation documents
• Business mail scanning
• Real-time annual report reminders
• Lifetime client support and access to your online account
• Access to additional services and filings (EIN, BOI, DBA)

“Talk to these folks before filing with the state!”

⭐⭐⭐⭐⭐

 

— Thomas Johnson, Google Review

Why Choose an Alabama Registered Agent to Form Your LLC?

 

We offer a bit more than the typical business formation service:

Increased Privacy

 

Unlike the majority of business formation services out there, our LLC formation package includes registered agent service.

This means you can use our business address on your Certificate of Formation and other formation documents. If you work from home or serve as your own registered agent, you might have to put your home address on these documents.

Using our business address will keep your address off the public record and protect your privacy. And, you’ll never have lawsuit served to you at your house or place of business.

Local Expertise

 

Because we’re local, our filers have extensive knowledge of Alabama filing rules and know how to get your LLC formation documents filed without any hiccups. We’ll also provide you with real-time annual report reminders to help keep you compliant with the state.

Plus, with lifetime client support, our filers ready to help you out with a multitude of other state and federal filings accessible through your online account, including Employer Identification Number (EIN), Beneficial Ownership Information (BOI) Report, and Trade Name/DBA.

Transparent Pricing

 

When you do business with us, we aren’t going to surprise you with hidden fees. That’s why—unlike some other business formation services out there—we include the cost of state filing fees in our price.

Service	Fee
Alabama State Filing Fees*	$236
Our Formation Service Fee	$100
One Year of Registered Agent Service	$49
Total	$385

*Includes state fee, name reservation fee, and online processing fees.

Incredible Value

 

We’re not afraid to brag—our LLC formation package is a great deal. While other business formation services charge a pretty penny for popular add-on services (you might end up paying $199/year for registered agent service or $99 for an operating agreement), we include many of these services as part of our package.

Plus, you can continue registered agent service with us for just $49/year after the first year. We won’t ever raise the price. Many companies increase the price of their registered agent services—sometimes by hundreds of dollars—after the first year, so we’ll continue to save you money, year after year.

Ready to Start Your Alabama LLC? Order Now!

 

Do-It-Yourself Alabama LLC Guide

 

Filing on your own? We’ve still got you covered with our step-by-step instructions for how to form and maintain an LLC in Alabama.

1. Name Your LLC
2. File Your Certificate of Name Reservation
3. Appoint a Registered Agent
4. File Your Certificate of Formation
5. Draft and Finalize an Operating Agreement
6. Obtain an EIN
7. Submit Your BOI Report
8. Apply for Necessary Business Permits and/or Licenses
9. File Annual Report & Tax Returns
    

1. Name Your LLC

The name of your LLC must be distinguishable from any other legal business entity registered in Alabama. The name must also include the words “Limited Liability Company” or the abbreviation “LLC” (with or without the punctuation).

You should check to make sure that the name you want is available by searching Alabama Secretary of State Business Entity Records.

If the name you choose for your LLC isn’t unique, your Certificate of Name Reservation will be rejected.

2. Complete Your Certificate of Name Reservation

One unique aspect of the LLC filing process in Alabama is that you must submit a Certificate of Name Reservation prior to filing your Certificate of Formation.

You’ll need to provide the following details:

• Type of business entity
• Name of company requested
• Name and address of the requester
• Where the filed certificate should be mailed
• Payment information

You can file online for $28 and get your name approved instantly using the Alabama Secretary of State Online Services website.

Or, if you’re old school, you can file by mail for $25, though approval time varies. You can download and print a copy of the form Alabama Secretary of State Name Reservation Request Form for Domestic Entities website and send it to:

     Office of the Secretary of State
     PO Box 5616
     Montgomery, AL 36103

3. Appoint a Registered Agent

All LLCs formed in Alabama are required to select a registered agent. A registered agent is a third-party entity or individual who is elected by the initial organizers of the LLC to receive any legal correspondence—including service of legal process—from the Alabama Secretary of State’s office on behalf of the company.

Your registered agent must have a physical street address located in Alabama (a PO box address is not valid) and must be available to accept documents year-round during regular business hours. If your LLC does not maintain a registered agent in Alabama, the state will have the authority to administratively dissolve your LLC.

 

4. File Your Certificate of Formation 

To make your LLC official, you’ll need to submit a Certificate of Formation with the Alabama Secretary of State.

The Certificate of Formation requires the following information:

• The name of the LLC
• A copy of the Name Reservation Certificate (if filing by mail)
• The name and address of the registered agent
• Signature of the organizer (the person(s) authorized to file your document)

Like your Certificate of Name Reservation, this can be done online or by mail. The filing fee is $200, plus online processing fees.

To file online, visit the Alabama Secretary of State Online Services website.

To download a copy of the Certificate to file by mail, go to the Alabama Secretary of State Business Downloads website. If you mail your Certificate, be aware that this form must be typed. If it is handwritten, it will be rejected. You’ll need to enclose a copy of your Certificate of Name Reservation. This is not necessary if you file online.

5. Draft and Finalize an Operating Agreement

Once your Alabama LLC is officially formed, you should draft and finalize an operating agreement. Although an operating agreement is not required by Alabama law or filed with any governmental agency, it is very important.

The operating agreement outlines information regarding topics such as, but not limited to:

• The rights and responsibilities of members and managers
• The management structure
• How ownership interest is distributed
• How to become a member
• What happens when a member dies

If your LLC does not have an operating agreement, and the entity ends up in court, it will be subject to the default Alabama LLC statutes. These default laws may not serve your company’s best interest. It’s smart to preemptively outline the rules and regulations of your LLC—just in case.

6. Obtain an EIN

An Employer Identification Number is a unique nine-digit number that is issued by the Internal Revenue Service for federal tax purposes. If you’re planning to open a business banking account, complete transactions, or hire employees, you are required to obtain an EIN. The process is simple and free. Visit the IRS website to apply.

7. Submit Your BOI Report

Starting January 1st, 2024, most newly-formed LLCs must file a Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN). Aimed at reducing money laundering and other types of fraud in the US, this report provides the federal government with basic information about your LLC and the people with the most control over its operations and profits.

Unlike your state filings, your BOI report does not go on the public record. You can file online for free through FinCEN. Failing to file or providing false information on your report can result in heavy fines (up to $10,000).

This report is due within 90 days if your LLC is formed in 2024 and within 90 days if your LLC is formed in or after 2025. If your LLC was formed before 2024, you’ll need to submit a BOI report before January 1, 2025.

8. Apply for Any Necessary Business Permits of Licenses

Business licenses and permit requirements vary by profession and jurisdiction in Alabama. It’s a good idea to check and see which ones you will need to operate. The Alabama Department of Labor: Labor Marketing Information Division Career Resource is a useful place to start. This guide lists all occupations that require licensing and resources for how to obtain a license or permit.

9. File Your Annual Report & Tax Returns

In Alabama, LLCs are required to file an annual report (commonly referred to as “Form PPT”) with the company’s annual tax return.

However, during your first year as a business, you’ll also need to file an initial tax return two and a half months after the company formation (which uses a different form, “Form BPT-IN”).

After that, annual reports and tax returns are due annually on March 15th.

You can find these forms on the Alabama Department of Revenue Forms site. Both reports require a minimum payment of $50.

 

FAQs

 

If I hire you to form my LLC, do you have any control over my company?

No. If Alabama Registered Agent LLC files your formation paperwork, we can be listed as your LLC organizer for privacy reasons. The organizer is the person or persons authorized to file the necessary paperwork to form the LLC. However, being an organizer of your LLC doesn’t give us any interest, power, or position in the company.

Will you file both my Certificate of Name Reservation and Formation?

Yes. We will file both certificates, not just the Certificate of Formation.

Can I order LLC formation without registered agent service?

No, our LLC formation always includes registered agent service. Serving as your registered agent allows us to offer unique services to better support your business, including use of our business address to increase privacy.

Is a website really necessary?

In today’s world it kind of is, though no one’s going to force you to have one. The benefit to controlling your online presence is that it’s relatively inexpensive, and it might be how you get most of your business. Your website doesn’t just have to be informational, it’s where you can transact orders and interact with customers.

When you start a business with us, we give you a domain name and website right away. Your domain name is free for the first year, then it’s subject to market prices. And your website, email, SSL and phone number are each free for 90 days, then $9 after that. We offer the easiest and most affordable way to get your business online right away.

Can I talk to a real person at your office?

Yes. Call our local office at (205) 383-1667 to speak with a real person.

Get Your Alabama LLC Today!