How Much an LLC Costs in Alabama
As of Q2 2026, forming a limited liability company in Alabama requires a one-time filing fee of $200 paid to the Alabama Secretary of State. This fee covers the processing of the Articles of Organization.
Alabama does not impose a separate Secretary of State annual report fee. However, every Alabama LLC must file an annual Business Privilege Tax return with the Alabama Department of Revenue. Under Act 2022-252, the former $50 minimum tax was eliminated for liabilities of $100 or less effective tax year 2024, meaning most small LLCs now owe $0 in tax. The return itself remains required regardless of the amount owed.
Online filings through the Secretary of State's system are typically processed immediately, while mail submissions are processed in approximately one to two business days after receipt, not counting transit time. These timeframes are drawn from a single source and are indicative only, not guaranteed. Fee amounts can change at fiscal-year boundaries, so anyone forming or maintaining an Alabama LLC should consult the Alabama Secretary of State's official fee schedule and the Alabama Department of Revenue directly for current, authoritative information.
Fee details
| Secretary of State filing fee (one-time) | $200 — verified against the official state source |
|---|---|
| Report fee (recurring) | No SoS annual report; annual Business Privilege Tax return filed with ALDOR — most small LLCs owe $0 since tax year 2024 (Act 2022-252) — verified against the official state source |
| Report frequency | Annual (ALDOR BPT return) |
| Processing — online (indicative) | immediately |
| Processing — mail (indicative) | 1-2 business days (plus mail time) |
Alabama business privilege tax. Alabama LLCs file an annual Business Privilege Tax return with the Department of Revenue. The former $50 minimum tax was eliminated for liabilities of $100 or less effective tax year 2024, so most small LLCs now owe $0 — but the return is still required.
Calculate your LLC cost →Compare LLC costs across all 50 states →
Fees verified as of Q2 2026 from state fee schedules and reputable compiled sources; refreshed quarterly (state fees typically change July 1 / January 1). How we compile and verify this data. This page is informational only — not legal or tax advice.