Skip to content
Independent money guidance
Clear Money Guide
Start here
Menu

How Much Does an LLC Cost in Alabama? (2026)

Clear Money Guide

On this page

Move through the answer, practical details and source notes.

Comparison tables scroll horizontally on smaller screens.

Updated August 10, 2026. Quick answer. Forming an LLC in Alabama costs $200 to file, and no periodic report is required. Five-year total: $450 over five years, every component verified.

What it actually costs

ItemAmount
Formation filing fee$200
Annual/biennial reportnone for LLCs — no periodic report is filed with the Secretary of State
Franchise / minimum tax$50 minimum Business Privilege Tax (per Ala. Dept. of Revenue, taxable years beginning after Dec. 31, 2022)
Publication requirementNo newspaper publication requirement was found.

Five-year cost of ownership: $450 over five years, every component verified. Publication cost is excluded from this figure — it’s county-driven where it applies, not state-driven, so a single number would be wrong for most filers.

The trap worth knowing before you file

Formation fee is statute-tier (verbatim codified text of Ala. Code 10A-1-4.31). Business privilege tax figures are from the Alabama Department of Revenue’s own page (official tier) because the codified mirror is stale. Access failure, recorded rather than worked around: https://www.sos.alabama.gov/business-entities/fees blocks outside readers, and the Wayback copy is the same block page; expedite pricing and the SOS’s own LLC checklist therefore went unread.

Source

Ala. Code 10A-1-4.31 (filing fees); Ala. Code 40-14A-21 to -29 (business privilege tax). Read 2026-08-06 from statute. Formation-service sites were not used as a source for this figure.

Once the LLC exists, an operating agreement is what actually runs it

This is free to browse and there is no obligation to buy anything — LawDepot builds a state-specific LLC operating agreement through a question-and-answer form.

Build an operating agreement at LawDepot

LawDepot pays us a commission if you buy through this link — it costs you nothing extra. We are not a law firm and this is not legal advice. Affiliate Disclosure.

If the LLC already exists somewhere else

Everything above prices forming a new Alabama LLC. A company that already exists in another state does not have to be dissolved and re-formed: Alabama takes it in as the same legal entity by the route its own code captions conversion, Ala. Code §§ 10A-1-8.01 to 10A-1-8.04, and the entity-law filing fee for it is $100 — a separate filing from the formation costs above. Going the other way, an Alabama LLC may leave for another US state under Ala. Code § 10A-1-8.04(a)(2); § 10A-1-8.01. Either way the move needs both ends to allow it — the state being left as well as the state being joined — which is where most published advice goes wrong.

How to Move an LLC to Another State · LLC Domestication by State: All 51 Jurisdictions, With the Statute

What letting it lapse costs in Alabama. The catch-up bill is only half the story — in Alabama there is no administrative dissolution in the LLC Act to reinstate from, and the document a tax-delinquent LLC actually needs comes from the Department of Revenue. The figures, and the statute they come from, are on the Alabama non-answer.

Looking for the annual-report due date and fee instead? See Alabama LLC annual report.

Electing S-corp status for this LLC changes the tax picture too. Alabama requires its own S-corp filing, Form 20S, on top of the federal one. See what Alabama charges at the entity level.

Related: Alabama’s registered agent requirements, including who can serve and what happens if you don’t have one.

Related: Alabama’s LLC Certificate of Good Standing cost, including who issues it and how fast you can get one.

See the document option on this page