Alabama LLC cost (2026)
Startup, filing, and ongoing fees for a Alabama LLC — with a full breakdown, a five-year projection, and a free calculator that's already set to Alabama.
Last reviewed: June 2026
How much does an LLC cost in Alabama?
Forming an LLC in Alabama costs $200 to file your Articles of Organization with the Alabama Secretary of State — among the higher LLC filing fees in the country (the national average is about $129), which ranks Alabama the 44th cheapest of 51 states to file in. Do it yourself and a realistic first-year total lands near $250; hire a registered agent and budget around $375.
Beyond the one-time filing fee, Alabama charges about $50 for its annual report — so the honest cost of an Alabama LLC is the filing fee plus that recurring amount every year. Remember that these are formation and compliance costs only — Alabama's state income tax on your pass-through profit is separate. The full breakdown, a five-year projection, and a personalized estimator are below.
Alabama LLC cost breakdown (2026)
Every cost of forming and maintaining a Alabama LLC — what's required, what's optional, and what each item runs.
| Cost | Amount | Type | Notes |
|---|---|---|---|
| Alabama filing fee (Articles of Organization) | $200 | One-time | One-time, paid to the Secretary of State when you form the LLC. |
| Annual report | $50/yr | Recurring | Alabama requires an annual Business Privilege Tax return (minimum $50). |
| Registered agent | $0–$125/yr | Optional | Free if you act as your own agent; a service adds privacy and reliability. |
| Operating agreement | $0–$200 | Optional | Free with a DIY template, or more through a legal service. |
| EIN (federal tax ID) | Free | One-time | Issued directly by the IRS — never pay a third party for this. |
What a Alabama LLC really costs: 3 scenarios
The right number depends on how much you do yourself. Here's the realistic first-year cost for the three most common approaches.
$200 filing + $50 ongoing. You act as your own registered agent and use a free EIN and operating-agreement template.
Adds ~$125/yr for a registered agent service — the usual choice for privacy or if you're often away from your Alabama address.
A formation company files for you and bundles the agent; base packages are often $0 + the $200 state fee, with paid tiers for extras.
5-year cost of a Alabama LLC
One-time fees are easy to forget once you're running. Here's the cumulative cost of a Alabama LLC over five years, assuming you use a registered agent service (~$175/yr ongoing).
| Period | Cost that year | Cumulative |
|---|---|---|
| Year 1 | $375 | $375 |
| Year 2 | $175 | $550 |
| Year 3 | $175 | $725 |
| Year 4 | $175 | $900 |
| Year 5 | $175 | $1,075 |
Acting as your own registered agent removes the ~$125/yr agent line, lowering the five-year total to about $450.
Alabama LLC cost calculator
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Can you lower the cost?
The two biggest levers are being your own registered agent (saves ~$125/yr) and getting your EIN free from the IRS instead of paying for it. If you operate in Alabama, forming here is usually cheapest overall — forming in another state typically forces you to register (and pay) in Alabama anyway.
Compare Alabama costs with other statesFrequently asked questions
The core cost is the $200 Alabama filing fee for your Articles of Organization. A do-it-yourself first year totals about $250; adding a registered agent service brings it to roughly $375. An EIN from the IRS is free.
Related guides
This tool provides educational estimates and general guidance only. It is not legal, tax, accounting, or financial advice. Always verify requirements with official government sources or consult a qualified professional before making decisions.
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