Alabama LLC Cost (2026): Filing Fee + Annual Fees
Forming an LLC in Alabama costs $200 to file, plus no recurring state fee (business privilege tax + annual report (combined Form PPT)). Filing is $200; the Business Privilege Tax minimum was effectively eliminated (no tax owed if computed tax is $100 or less), so most small LLCs now pay $0, though the combined return is still filed. That works out to about $200 in the first year and roughly $200 in state fees over five years (filing plus recurring), before a registered agent or any taxes. These are 2026 estimates of published state fees — not legal or tax advice. Verify with the Alabama Secretary of State.
Source: Alabama Secretary of State. Data as of 2026-06-14.
Alabama LLC fee breakdown
| Cost item | Alabama |
|---|---|
| State filing fee (Articles of Organization) | $200 |
| Recurring state fee | None (business privilege tax + annual report (combined Form PPT)) |
| Annualized recurring cost | $0/yr |
| Filing agency | Alabama Secretary of State |
Source: Alabama Secretary of State. Data as of 2026-06-14.
Estimate your total Alabama LLC cost
The state fees above are only part of the picture. Add an optional registered agent and one-time extras to estimate your real first-year cost in Alabama:
Alabama LLC cost over time
| Item | Estimated cost |
|---|---|
| First-year state cost | $200 |
| Each following year (state fee) | $0 |
| 5-year state cost (filing + recurring) | $200 |
Source: Alabama Secretary of State. Data as of 2026-06-14.
What the recurring Alabama fee covers
Filing is $200; the Business Privilege Tax minimum was effectively eliminated (no tax owed if computed tax is $100 or less), so most small LLCs now pay $0, though the combined return is still filed.
Alabama does not charge a recurring report fee, but you may still owe state income, franchise or other business taxes depending on your activity. Confirm with the Alabama Secretary of State and a tax professional.
Frequently asked questions
How much does it cost to form an LLC in Alabama?
Forming an LLC in Alabama costs $200 to file the Articles of Organization with the Alabama Secretary of State, plus no recurring state fee. Filing is $200; the Business Privilege Tax minimum was effectively eliminated (no tax owed if computed tax is $100 or less), so most small LLCs now pay $0, though the combined return is still filed. These are estimates of published state fees — verify with the Alabama Secretary of State.
Does Alabama have an annual LLC fee?
No. Alabama has business privilege tax + annual report (combined form ppt), so there is no recurring state fee to keep the LLC active (other taxes may still apply).
Do I need a registered agent for a Alabama LLC?
Yes. Like every state, Alabama requires your LLC to name a registered agent with a physical address in the state. You can act as your own agent for free, or hire a commercial registered-agent service for roughly $50–$300 per year. See do I need a registered agent?
Where do I verify Alabama LLC fees?
Check the current fees with the Alabama Secretary of State. The figures here are 2026 estimates compiled from a consolidated source and the state agency — confirm before you file.
Compare with other states
See how Alabama stacks up in the national LLC cost comparison, or jump to a nearby state:
- Delaware LLC cost — $110 to file, $300/yr (flat alternative-entity tax (no annual report))
- Indiana LLC cost — $95 to file, $31 every 2 years (business entity report)
- Massachusetts LLC cost — $500 to file, $500/yr (annual report)
- Nevada LLC cost — $425 to file, $350/yr (annual list + state business license)
- Ohio LLC cost — $99 to file, no recurring state fee
- Tennessee LLC cost — $300 to file, $300/yr (annual report ($50/member, min $300) + franchise tax)
Estimate, not legal or tax advice. Alabama LLC fees are 2026 estimates compiled from a consolidated source and cross-checked against the state agency; they may lag a recent change. Always verify with the Alabama Secretary of State before filing. See our methodology and disclaimer.
Last updated: 2026-06-14