LLC · Alabama · 2026

What an LLC really costs in Alabama

Every state fee and deadline for an LLC in Alabama, from the official state source, checked October 2026.

To form

$228

Domestic Limited Liability Company Certificate of Formation

First year with the state

~$228

Filing + one round of required reports and minimum taxes

With Incorra

$228

Free filing, state fee at cost. Or $477 with Plus (agent + reports, $249/yr).

Every recurring requirement

  • Alabama business privilege tax return (Form PPT)Every year by March 15. Alabama Business Privilege Tax return + annual report (Form PPT for LLCs/S corps, Form CPT for C corps) is due with the federal income tax return. Since tax year 2024 (Act 2022-252), an entity whose privilege tax computes to $100 or less owes nothing and has no filing requirement; tax is $0.25-$1.75 per $1,000 of Alabama net worth. March 15 = multi-member LLC taxed as partnership; a single-member LLC follows its owner's federal due date (April 15 for an individual owner); a disregarded LLC whose owner is itself subject to AL BPT is exempt.No fee

Questions

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

Alabama charges $228 to file the Domestic Limited Liability Company Certificate of Formation.

What does an LLC cost every year in Alabama?

Alabama business privilege tax return (Form PPT): no fee, every year by March 15 (Alabama Business Privilege Tax return + annual report (Form PPT for LLCs/S corps, Form CPT for C corps) is due with the federal income tax return. Since tax year 2024 (Act 2022-252), an entity whose privilege tax computes to $100 or less owes nothing and has no filing requirement; tax is $0.25-$1.75 per $1,000 of Alabama net worth. March 15 = multi-member LLC taxed as partnership; a single-member LLC follows its owner's federal due date (April 15 for an individual owner); a disregarded LLC whose owner is itself subject to AL BPT is exempt.).

What if my LLC was formed in another state?

To do business in Alabama you register as a foreign entity: Foreign Limited Liability Company Application for Registration, $178.

Not sure an LLC is right?

Describe your business and Incorra compares LLC, S-corp and C-corp with your numbers, including the tax when you sell, then files it in Alabama.

Plan my company free

Source: https://www.sos.alabama.gov/sites/default/files/2022-01/2021FeeSchedule.pdf · verified 2026-10-15. State fees change; Incorra re-checks them regularly. General information, not legal or tax advice.