Alabama LLC: Key Data, Fees & Features
Your complete overview of $Alabama LLC costs, pros & cons, and key regulations. Make an informed decision with our up-to-date data.
State Filing Fee
$200
Processing Time
2-2 days
Annual Report Fee
$0
Anonymous LLC
No
Publication
No
Advantages
- Builds credibility for your business
- Simplifies management
- Protects personal assets
Disadvantages
- Alabama requires LLCs to reserve their name before they can form an LLC, adding to the filing time, especially when filing by mail.
- Business Privilege Tax Return filing required, with tax rates ranging from $0.25 to $1.75 for each $1,000 of net worth located in Alabama.
Franchise Tax & State Requirements
Alabama requires all new LLCs to file an Initial Business Privilege Tax Return with the Alabama Department of Revenue. The tax rate for the Business Privilege Tax (BPT) is based on the entity’s federal taxable income apportioned to Alabama. Tax rates range from $0.25 to $1.75 for each $1,000 of net worth located in Alabama.
Frequently Asked Questions
Transparency & Data Sources
This review was last updated on $August 19, 2025 to ensure accuracy.