Startupsole Logo

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.

Recommended Agents for $Alabama

$299+ State Fee
  • LLC Formation
  • Corporation Filing
Bizee logo

Bizee

(4.6)
$0+ State Fee
  • Business Formation
  • Compliance
$0+ State Fee
  • Corporation
  • Limited Liability Company (LLC)

Explore Similar States

Alaska

LLC Formation Guide

Filing Fee:$250
Processing Time:1-1 days

Arizona

LLC Formation Guide

Filing Fee:$85
Processing Time:1-1 days

Idaho

LLC Formation Guide

Filing Fee:$100
Processing Time:1-15 days

Massachusetts

LLC Formation Guide

Filing Fee:$520
Processing Time:1-1 days

Minnesota

LLC Formation Guide

Filing Fee:$155
Processing Time:2-2 days

Mississippi

LLC Formation Guide

Filing Fee:$50
Processing Time:1-1 days