Ready to Form Your LLC?
Starting an LLC in Alabama begins with filing a Certificate of Formation with the Alabama Secretary of State and appointing a registered agent with a physical in-state address. This structure offers liability protection for business owners while allowing for flexible management and straightforward day-to-day operations.
Unlike some states, Alabama requires LLCs to first submit their formation paperwork through the local probate court before it’s accepted by the Secretary of State, which is an extra step that’s important to plan for. LLCs must also file an annual report and pay the Alabama Business Privilege Tax to stay compliant. Despite these requirements, Alabama’s relatively low filing fees and pro-business climate make it a strong choice for entrepreneurs looking to protect their personal assets and establish a formal business presence.
Navigating Alabama's business landscape is easier with the right support. LLC Attorney provides step-by-step guides, legal resources, expert tools, and Business Success Advisors to help both new and established businesses succeed.
Forming an LLC in Alabama requires filing a Certificate of Formation with the Secretary of State after initial submission through the county probate court. You'll also need to appoint an Alabama registered agent with a physical in-state address. To remain in good standing, LLCs must file an annual report and pay the Alabama Business Privilege Tax.
Starting your Alabama LLC with us is simple, fast, and built for privacy. With same-day LLC filing, we submit your Certificate of Formation within 24 hours of receiving your complete and accurate information.
Our base LLC formation package starts at $99 plus state fees and includes everything you need to get started: name search, LLC operating agreement, Alabama business address, registered agent service, and scanning for up to five business documents per year (excluding junk or registered agent mail).
We also help clients, both U.S. residents and international founders, open business bank accounts at no additional cost. If you don’t have a Social Security Number, we’ll handle your EIN application by fax to avoid delays.
While other services often charge extra for essentials or delay filings, we focus on transparency and speed. Thousands of Alabama entrepreneurs have trusted us to help them form LLCs correctly and efficiently. If you have unique questions or requests, our experienced team is ready to support you.
A Limited Liability Company (LLC) is a flexible legal structure recognized across the U.S., including Alabama, that provides business owners with personal asset protection and simplified tax reporting. It blends the legal protection of a corporation with the ease of a sole proprietorship or partnership, making it a top choice for entrepreneurs throughout Alabama.
When you start an LLC in Alabama, your business becomes its own legal entity. This means your personal assets, such as your home, car, or savings, are generally protected from lawsuits or debts tied to the business (provided you maintain proper corporate formalities and keep business and personal assets separate).
Forming an LLC in Alabama is a smart choice for entrepreneurs in many industries, from independent contractors and service providers to real estate investors, online sellers, and family-owned businesses. An LLC provides liability protection while keeping taxes and management simple.
This structure is especially appealing for those who want to separate personal and business finances, minimize personal risk, and build credibility with clients, vendors, or partners. It works well for freelancers, tradespeople, retail owners, and startups that value flexibility without excessive paperwork.
If your goal is to protect your assets while running a lean, professional operation, an Alabama LLC offers a straightforward path to building and growing your business.
Starting an LLC in Alabama gives business owners a straightforward way to protect their personal assets while keeping operational complexity to a minimum. Whether you’re running a construction business in Montgomery or launching an online boutique from Mobile, the LLC structure creates a legal barrier between your personal finances and business obligations.
Alabama’s relatively low formation costs and simple filing process make it accessible for new entrepreneurs. The state also allows for flexible management structures, so you can choose to run the business yourself or with partners, without the formalities required of corporations. Pass-through taxation is another advantage. LLCs in Alabama do not pay income tax at the business level, helping owners avoid double taxation.
However, there are a few trade-offs. Alabama LLCs must pay an annual Business Privilege Tax and file an annual report to remain in good standing. These filings require some attention to detail, especially for those unfamiliar with state-level compliance. And while the LLC provides liability protection, it is not absolute. You’ll need to follow proper accounting and governance practices to preserve that shield.
For Alabama-based businesses that want flexibility, credibility, and protection without overcomplicating their structure, an LLC remains one of the best options available.
Every Alabama LLC is required to appoint a registered agent who can receive legal documents, government correspondence, and compliance notices on behalf of the business. This person or service must have a physical street address in Alabama and be available during regular business hours (P.O. boxes do not qualify).
Some business owners choose to act as their own registered agent, but this means your name and address will appear on public records, and you must be consistently available to accept deliveries during the workday. For more privacy and convenience, many Alabama entrepreneurs choose a commercial registered agent service that keeps personal details off public filings and ensures nothing important gets missed.
Selecting the right registered agent is an important part of maintaining your LLC’s good standing with the state and avoiding missed deadlines or legal issues.
An operating agreement is a key internal document that outlines how your Alabama LLC will be managed. While the state does not legally require LLCs to have one, drafting this agreement is highly recommended. It helps define ownership percentages, member responsibilities, voting rights, and procedures for handling profits, losses, or unexpected changes like the departure of a member.
A well-structured operating agreement also gives you the flexibility to override certain default rules under Alabama law. This allows your LLC to operate in a way that better fits your business goals. Even single-member LLCs benefit from having one on file, as it helps reinforce limited liability protection and clarify the business's structure.
Having all members review and sign the operating agreement ensures alignment from the beginning and helps prevent misunderstandings down the line. It also shows that your business is organized and operating professionally, which can be useful when working with banks, investors, or legal advisors.
Forming and maintaining an LLC in Alabama comes with a few essential expenses. Here’s a breakdown of the typical costs you can expect:
While Alabama adds a few procedural steps compared to other states, such as name reservation and probate court submission, the total cost of forming and maintaining an LLC remains affordable for most business owners.
By default in Alabama, single-member LLCs are treated as disregarded entities, and multi-member LLCs as partnerships for federal tax purposes, with both structures offering pass-through taxation. This means the business itself does not pay federal income taxes. Instead, profits and losses are reported on each member’s personal tax return. This structure avoids double taxation and simplifies federal filings for most small business owners.
At the state level, Alabama requires all LLCs to file an annual report and pay the Business Privilege Tax, even if the business earns little or no income. The minimum tax is $100, but the total can increase based on your company’s income, net worth, and structure. This report is filed with the Alabama Department of Revenue and must be submitted each year to maintain good standing.
If your LLC sells taxable goods or services, you’ll also need to register for an Alabama Sales Tax License and collect sales tax. Rates vary depending on your location. Additionally, if your LLC has employees, you’ll need to register for withholding tax and comply with employer-related filing requirements.
For LLCs that elect to be taxed as an S corporation or C corporation, Alabama corporate income tax rules will apply. It’s a good idea to consult with a tax advisor to determine the best setup for your business.
Effective planning is crucial in business, where the risks and rewards are significant. LLC Attorney's approach to business formation services extends well beyond simple LLC establishment. We ensure our clients receive more than just a certificate of formation. Our services encompass comprehensive asset protection, registered agent services, and estate planning, providing significant value beyond the fundamental legal structure. We take pride in building lasting relationships with our clients, supporting them well beyond the initial setup to help maintain ongoing compliance and success.
LLC Attorney makes forming your LLC fast and simple so you can focus on building your business.