How To Start An LLC In Alabama In 2025
Everything you need to know about forming an LLC in Alabama, plus our expert-tested recommendations for the best formation services in the Heart of Dixie.
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Alabama offers straightforward LLC formation with reasonable costs and business-friendly regulations. With a $200 state filing fee plus $25 name reservation (total $225), Alabama provides an attractive environment for entrepreneurs. Whether you're in Birmingham, Mobile, Huntsville, or anywhere else in the Heart of Dixie, you can establish your Alabama LLC efficiently and cost-effectively.
Our top pick for Alabama LLC formation is ZenBusiness. They offer fast processing for Alabama LLCs, include a year of free Worry-Free Compliance, and their $0 formation package means you only pay the $225 total Alabama fees ($200 filing + $25 name reservation). With their expertise in Alabama business law and excellent customer support, they make the entire process simple and stress-free.
Featured Partners
- Best filing & protections
- Fastest processing
- Free compliance for 1 yr
- Award-winning support
On ZenBusiness's Website
- Best for standard filing
- Fast processing options
- Free yr registered agent
- Lifetime company alerts
On Bizee's Website
- Best legal services
- Fast processing options
- AI legal forms
- Trusted since 1999
On LegalZoom's Website
- Best branding services
- Fast processing options
- Logo & website builder
- Establish your brand
On Tailor Brands's Website
Compare the Best Alabama LLC Services of 2025
Side-by-side comparison of features, pricing, and capabilities
| Feature | ZenBusiness Best Overall Value | Bizee Fastest Formation |  Inc Authority Free Formation | Tailor Brands Best for Branding | LegalZoom Best for Legal Support |  Rocket Lawyer Legal Documents |  BetterLegal Speed & Simplicity |  Active Filings Traditional Service |  Filenow Budget Option |  Northwest Basic Formation |
|---|---|---|---|---|---|---|---|---|---|---|
| Starting Price | $0 + state fees | $0 + state fees | $0 + state fees | $0 + state fees | $0 + state fees | $99.99 + state fees | $299 all-inclusive | $199 + state fees | $99 + state fees | $39 + state fees |
| Our Rating | 4.9 /5 | 4.6 /5 | 4.4 /5 | 4.3 /5 | 4.2 /5 | 4.0 /5 | 3.9 /5 | 3.8 /5 | 3.6 /5 | 3.4 /5 |
| Standard Processing | 7-10 days | 3 weeks | 7-10 days | 3 weeks | 5-14 days | 5-7 days | 2 days | 5-10 days | 7-10 days | 7-10 days |
| Rush Processing | 1 day +$79 | 1 day +$49 | 2 days +$99 | 1 day +$99 | Standard speed | 2 days +$100 | 3 days +$50 | |||
| Compliance Tools | Worry-Free Compliance Free 1st year | Alerts only Basic monitoring | Basic tools Included | Basic alerts Included | Premium only Extra cost | Document library With membership | Limited Basic support | Basic tools Limited | None Not available | None Not included |
| Registered Agent | $199/yr Not included | Free Year 1 Then $119/yr | Free Year 1 Then $199/yr | $119/yr Not included | $249/yr Not included | $149/yr Not included | Included In base price | Free Year 1 Then $119/yr | +$125/yr Not included | $125/yr Available |
| Operating Agreement | +$99 | +$99 | +$50 | Included | +$99 | Included | Included | +$99 | +$40 | +$39 |
| EIN Service | +$99 | +$70 | +$70 | Included | +$159 | +$99 | Included | +$70 | +$50 | +$70 |
| Customer Support | Phone, Chat, Email | Limited | Phone, Chat | Phone, Email | Phone, Chat | Phone, Chat | Phone, Email | Phone, Email | Email only | Email only |
| Mobile App | ||||||||||
| Attorney Access | ||||||||||
| Get Started | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → | Get Started Learn more → |
Note: State filing fees are additional for all services except where noted. Features and pricing may vary by state.
Our Top Picks for Alabama LLC Services
Best Overall for Alabama ZenBusiness excels at Alabama LLC formation with their efficient filing process and deep knowledge of Alabama's specific requirements. They include their Worry-Free Compliance for the first year (saving you $199+), handle your Alabama Secretary of State registration, and provide ongoing compliance support including Business Privilege Tax reminders. Their team understands Alabama's requirements and can help ensure you stay compliant with all state regulations.
Best For:
Alabama entrepreneurs who want comprehensive support and reliable filing
Pros
- Fast Alabama LLC filing (1-2 business days)
- Free Worry-Free Compliance for 1 year
- Alabama Business Privilege Tax and tax reminders
- Expert support familiar with Alabama requirements
- 100% accuracy guarantee on Alabama filings
- Free EIN and operating agreement with Pro plan
Cons
- Premium features require upgraded plans
- Registered agent is $199/year
Fast Alabama Formation Bizee (formerly Incfile) offers efficient Alabama LLC formation with fast processing options. They provide a free Alabama registered agent for the first year and their dashboard specifically tracks Alabama's Business Privilege Tax requirements. Perfect for Alabama entrepreneurs who need reliable formation and ongoing compliance reminders.
Best For:
Alabama businesses needing affordable formation with compliance tracking
Pros
- 1-2 day Alabama processing available
- Free Alabama registered agent for first year
- Lifetime company alerts for Alabama compliance
- Dashboard tracks Alabama Business Privilege Taxs and taxes
- Free business tools and templates
- No hidden fees on basic package
Cons
- Operating agreement costs extra
- Limited phone support hours
Best Legal Support in AL LegalZoom brings decades of experience with Alabama business formation and the state's legal requirements. Their attorney network includes Alabama-licensed lawyers who can provide state-specific legal advice. While their add-ons are pricier, they're ideal for Alabama businesses with complex legal needs or those who want the security of professional legal backing.
Best For:
Alabama businesses needing ongoing legal support and guidance
Pros
- Attorney consultations for Alabama law
- Expedited filing available for Alabama
- Comprehensive Alabama legal forms library
- Phone support with Alabama expertise
- 30+ years serving Alabama businesses
- Peace of mind guarantee
Cons
- Alabama registered agent costs $249/year
- Operating agreement extra (+$99)
Best Alabama Branding Package Tailor Brands combines Alabama LLC formation with comprehensive branding tools, perfect for Alabama's diverse business economy. Ideal for businesses in Birmingham, Mobile, or Huntsville who need a complete brand identity. Their packages include everything needed to establish a professional Alabama business presence in the competitive regional marketplace.
Best For:
Alabama creative businesses and startups needing comprehensive branding
Pros
- Logo design and branding included
- Website builder optimized for Alabama businesses
- Business cards with Alabama address
- 5-7 day Alabama processing
- EIN and operating agreement included
- Social media kit for Alabama market
Cons
- Monthly subscription required
- No expedited processing options
Free Alabama Formation Inc Authority offers genuinely free Alabama LLC formation where you only pay the $225 state fee. They include a free Alabama registered agent for the first year and handle all Secretary of State filings. However, you'll need to independently manage Alabama's Business Privilege Tax requirements. Perfect for Alabama entrepreneurs prioritizing upfront cost savings.
Best For:
Budget-conscious Alabama entrepreneurs who can handle compliance independently
Pros
- Truly free Alabama LLC formation
- Free Alabama registered agent for first year
- Free tax consultation for Alabama businesses
- Handles Alabama Secretary of State filing
- No hidden fees on basic package
- Alabama business forms included
Cons
- Processing takes 7-10 business days
- Alabama registered agent renews at $119/year
- Aggressive upselling reported
Privacy Focused Northwest Registered Agent takes a minimalist approach to Alabama LLC formation, focusing on privacy and straightforward service. They handle your Alabama Secretary of State registration efficiently and provide registered agent services at competitive rates. However, you'll need to independently track Alabama's Business Privilege Tax deadlines.
Best For:
Alabama entrepreneurs who prioritize privacy and simple, no-frills service
Pros
- Strong privacy protection for Alabama businesses
- Transparent pricing with no hidden fees
- Handles Alabama Secretary of State filing
- No aggressive marketing or upselling
- Straightforward Alabama LLC process
- Low-cost registered agent service
Cons
- Email-only customer support
- No expedited processing for Alabama filings
- Limited business tools and resources
- Basic operating agreement template
All-Inclusive & Fast BetterLegal offers a streamlined approach to Alabama LLC formation with their comprehensive $299 service package plus Alabama's $225 state filing fee. With guaranteed 2-business-day turnaround and transparent pricing, they handle all formation essentials. However, Alabama's ongoing Business Privilege Tax requirements are separate considerations.
Best For:
Alabama businesses needing everything done quickly with transparent pricing
Pros
- Guaranteed 2-business-day Alabama formation
- Everything included: formation, EIN, operating agreement, registered agent
- Transparent flat-rate pricing structure
- Alabama-specific compliance guidance
- No hidden fees or surprise costs
- Streamlined single-package approach
Cons
- Higher upfront cost than budget options
- State filing fees are additional cost
- Limited ongoing support after formation
- Annual compliance is separate
Legal Platform Rocket Lawyer goes beyond simple Alabama LLC formation to provide a comprehensive legal platform. With access to Alabama-licensed attorneys and extensive legal resources, they're particularly valuable for Alabama businesses navigating complex regulatory environments. While formation takes longer, the ongoing legal support is worthwhile for businesses with complex needs.
Best For:
Alabama businesses anticipating ongoing legal needs and complex compliance
Pros
- Access to Alabama-licensed attorneys
- Comprehensive legal document library
- Ongoing legal support beyond formation
- Alabama business law resources
- Attorney consultations included with membership
- Useful for complex Alabama regulations
Cons
- Monthly membership required for best value
- Alabama formation takes 5-7 business days
- Higher costs compared to formation-only services
- Complex pricing structure
Compliance Specialists Harbor Compliance specializes in the ongoing administrative and compliance aspects of Alabama business ownership. Given Alabama's Business Privilege Tax requirements, their strength lies in helping established Alabama businesses navigate ongoing compliance challenges and regulatory requirements.
Best For:
Alabama businesses with complex compliance needs or planning significant growth
Pros
- Specialized in ongoing Alabama compliance
- Corporate services and advanced structures
- Alabama Business Privilege Tax and tax filing services
- Business licensing assistance
- Registered agent services statewide
- Focus on regulatory requirements
Cons
- Higher fees for premium services
- Complex pricing for basic formation
- Longer processing times (7-10 days)
- Limited customer support hours
Traditional Service Active Filings provides reliable Alabama LLC formation with a focus on personal service and phone support. Their representatives understand Alabama's specific requirements including Business Privilege Tax obligations. While pricing is higher than newer competitors, they offer traditional support that many Alabama business owners appreciate.
Best For:
Alabama entrepreneurs who prefer phone support and traditional business services
Pros
- Phone support with Alabama expertise
- First year registered agent included
- Alabama Business Privilege Tax and tax reminders
- Traditional, reliable service approach
- Basic compliance tools included
- Personal service approach
Cons
- Higher starting price than competitors
- Limited online tools and resources
- Standard processing takes 5-7 days
- Fewer modern business features
Alabama LLC Requirements & Steps
What You Need to Form an Alabama LLC
- ✓ Unique LLC Name: Must include "Limited Liability Company," "L.L.C.," or "LLC" and be distinguishable from other Alabama businesses
- ✓ Alabama Registered Agent: Required by law - must have an Alabama street address (no P.O. boxes)
- ✓ Certificate of Formation: Filed with Alabama Secretary of State
- ✓ EIN (Federal Tax ID): Required to open a business bank account and hire employees
- ✓ Operating Agreement: Not required by Alabama but highly recommended
- ✓ Business Privilege Tax Return: Due by April 15th annually
Alabama LLC Costs
- • State Filing Fee: $200
- • Name Reservation: $25 (required)
- • Registered Agent: $100-$300/year (or free first year with most services)
- • EIN: Free from IRS, $50-$150 through formation services
- • Business Privilege Tax: Minimum $50 per year
- • Business License: Varies by industry and location ($15-$1,000)
Alabama LLC Timeline
- • Name Availability: Check via Alabama Secretary of State
- • Processing Time: 5-7 business days standard
- • EIN Application: Instant online or 4 weeks by mail
- • Total Time to Launch: 5-10 business days typically
Why Form Your LLC in Alabama?
Tax Advantages
- • No state income tax on pass-through entities
- • Low Business Privilege Tax requirements
- • Business-friendly tax structure
Business Environment
- • Growing aerospace and automotive industries
- • Strategic location in the Southeast
- • Access to major transportation networks
- • Competitive operating costs
Legal Protections
- • Strong asset protection laws
- • Charging order protection
- • Privacy for members
- • Flexible management structure
Easy Administration
- • Straightforward filing process
- • Reasonable state filing fee
- • Minimal ongoing requirements
- • Efficient state processing
Alabama LLC Frequently Asked Questions
How much does it cost to form an LLC in Alabama?
The Alabama state filing fee is $200, plus a required $25 name reservation fee (total $225). Additional costs include a registered agent ($100-$300/year, though many services offer the first year free), EIN application (free from IRS), and ongoing Business Privilege Tax (minimum $50 per year). Most Alabama entrepreneurs spend between $225-$500 total to form their LLC in the first year.
Do I need a registered agent for my Alabama LLC?
Yes, Alabama law requires every LLC to have a registered agent with an Alabama street address (P.O. boxes are not acceptable). The registered agent receives legal documents and official state correspondence on behalf of your LLC. You can serve as your own registered agent if you have an Alabama address, but most business owners use a professional service for privacy and reliability. Many formation services include the first year free.
How long does it take to form an LLC in Alabama?
Alabama typically processes LLC formations in 5-7 business days for standard filing. Expedited processing is available for an additional $100 fee, which guarantees processing within 3 business days. The entire process from filing to having your LLC ready for business typically takes 5-10 business days, depending on whether you choose standard or expedited processing.
What are Alabama's ongoing compliance requirements?
Alabama LLCs do not file annual reports with the Secretary of State. However, all Alabama LLCs must file a Business Privilege Tax Return with the Alabama Department of Revenue by April 15th each year. The minimum Business Privilege Tax is $50, but entities owing $100 or less are exempt from both filing and payment as of 2022. This is the only required annual filing for Alabama LLCs.
Can I form an Alabama LLC if I don't live in Alabama?
Yes, you don't need to be an Alabama resident to form an Alabama LLC. However, you must have a registered agent with an Alabama street address, making professional registered agent services essential for out-of-state business owners. Keep in mind you may also need to register as a foreign LLC in your home state if you're conducting business there.
What name requirements exist for Alabama LLCs?
Your Alabama LLC name must be unique and distinguishable from other businesses registered in the state. It must include "Limited Liability Company," "L.L.C.," or "LLC" at the end. You can check name availability through the Alabama Secretary of State website. You'll need to pay a $25 name reservation fee in addition to the $200 filing fee, for a total of $225 to complete the formation process.
Popular Alabama Cities for LLCs
- • Huntsville
- • Florence
- • Decatur
- • Madison
- • Birmingham
- • Montgomery
- • Tuscaloosa
- • Auburn
- • Mobile
- • Dothan
- • Enterprise
- • Troy
- • Anniston
- • Opelika
- • Gadsden
- • Talladega
Ready to Start Your Alabama LLC?
Join thousands of entrepreneurs who've successfully formed their Alabama LLCs. Get started today with our top-rated formation services and expert guidance.