Alabama LLC Formation Quick Facts (2026) State filing fee: $200 (Certificate of Formation, filed with the Alabama Secretary of State). Business Privilege Tax Return (Form PPT), due April 15 each year. No annual report to SOS since October 2024 (Act 2024-213). Fee: $50 minimum (BPT, paid to ALDOR not SOS). Top pick: Northwest Registered Agent, $39 service fee + $200 state fee = $264 total year one, registered agent included free year one, then $125/year. Budget alternative: Bizee, $0 formation fee + $200 state fee. Note: Bizee shares customer data with marketing partners.

Best LLC Service in Alabama (2026): Top Picks for AL Formation

Quick Answer Best overall: Northwest Registered Agent - $39 + $200 state fee = $264. Includes free year of registered agent, operating agreement template, compliance reminders. Privacy-focused, no data selling.
Budget pick: Bizee - $0 service fee + $200 state fee. Free year of registered agent. Shares data with marketing partners (caveat required).
Our Top Pick Northwest Registered Agent - Best for Alabama LLCs

$39 service fee + $200 state fee = $264 total year one. Registered agent service included free for year one, then $125/year. Privacy-focused, family-owned, in business since 1998. Does not sell your data.

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Alabama LLC At a Glance

ItemDetail
Formation documentCertificate of Formation
Filing agencyAlabama Secretary of State
State filing fee$200
Processing time (online)1-2 business days
Annual/biennial requirementBusiness Privilege Tax Return (Form PPT), due April 15 each year. No annual report to SOS since October 2024 (Act 2024-213).
Annual/biennial fee$50 minimum (BPT, paid to ALDOR not SOS)
State income tax5% flat rate on net income
Franchise taxBusiness Privilege Tax: $0.25-$1.75 per $1,000 of Alabama net worth. Minimum $50. Due April 15.
Registered agent requiredYes, physical Alabama address required

Alabama compliance note: Alabama eliminated the SOS annual report in October 2024. The remaining compliance obligation is the Business Privilege Tax (Form PPT) due April 15 to ALDOR, minimum $50. Confirm your formation service tracks ALDOR deadlines, not just SOS filings.

Alabama LLC Formation Services Compared

Service AL Service Fee AL State Fee RA Year 1 RA Renewal Year-1 Total 3-Year Total
Northwest $39 $200 $0 (included) $125/yr $264 ~$514
ZenBusiness Starter $0 $200 $199/yr (add-on) $199/yr $200 + $199 RA Higher
Bizee Basic* $0 $200 $0 (included) $119/yr $200 Moderate
Inc Authority $0 $200 $0 (included) $179/yr $200 Moderate
LegalZoom Pro $249 $200 Not included $249/yr Highest Highest

*Bizee Basic includes articles of organization filing only. RA included free year one then $119/year. Note: Bizee shares customer data with marketing partners. LegalZoom registered agent is never included in any plan; auto-renewal traps apply on add-on services. Rates verified June 2026.

Northwest Registered Agent: Top Pick for Alabama

Best Overall

Northwest Registered Agent

Service fee: $39 • Alabama state fee: $200 • Year-1 total: $264

Northwest has been forming LLCs since 1998. They are family-owned, have an A+ BBB rating, and maintain physical offices in all 50 states. They do not sell customer data - a meaningful differentiator in an industry where data selling is common. The $39 formation fee includes a free year of registered agent service (then $125/year), an operating agreement template, and same-day filing.

For Alabama specifically: Northwest files the Certificate of Formation directly with the Alabama Secretary of State and sends compliance reminders for your Business Privilege Tax Return (Form PPT). Their Business Identity suite (added January 2026) also includes business address and phone services.

What is not included: EIN assistance is a $50 add-on. Get your EIN free at IRS.gov in 15 minutes.

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ZenBusiness

Good Option

ZenBusiness

Service fee: $0 (Starter) • Alabama state fee: $200 • RA: $199/year add-on (auto-renewing)

ZenBusiness offers $0 formation on its Starter plan, but registered agent service costs $199/year and is not included. This makes ZenBusiness more expensive than Northwest on a 3-year basis for most Alabama LLC owners who need registered agent service. ZenBusiness has a good dashboard and compliance alert system, but the auto-renewing subscriptions require attention at sign-up.

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Bizee (formerly Incfile)

Budget Option

Bizee

Service fee: $0 (Basic) • Alabama state fee: $200 • RA: Free year 1, then $119/year

Bizee offers $0 formation with a free first year of registered agent service. After year one, RA renews at $119/year. Important caveat: Bizee shares customer data with marketing partners. If data privacy matters to your business or personal information, this is a meaningful drawback. Bizee is a reasonable budget option for price-focused formation.

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Inc Authority

Free Formation Option

Inc Authority

Service fee: $0 • Alabama state fee: $200 • RA: Free year 1, then $179/year

Inc Authority offers $0 formation with registered agent included free for year one. The year-two RA renewal at $179/year is higher than Bizee ($119) or Northwest ($125), making it more expensive long-term despite the free formation. Inc Authority upsells aggressively on add-on packages during checkout.

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LegalZoom

High Cost

LegalZoom

Service fee: $249+ • Alabama state fee: $200 • RA: $249/year, not included in any plan

LegalZoom is the most expensive option: $249 for the Pro plan and registered agent is never included at any price point, adding another $249/year. LegalZoom also has auto-renewal traps on bookkeeping and attorney trial add-ons. The brand recognition does not translate to better formation quality than Northwest at $39. Not recommended for Alabama LLC formation.

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DIY Filing in Alabama

You can file your Certificate of Formation directly with the Alabama Secretary of State without a formation service. The process requires:

  1. Searching the Alabama business entity database for name availability
  2. Filing a name reservation ($25, required before filing in Alabama)
  3. Completing and submitting the Certificate of Formation online at Alabama Secretary of State portal
  4. Paying the $200 filing fee
  5. Designating yourself or a professional as registered agent

DIY filing saves the $39 service fee but requires tracking compliance deadlines yourself. For most new LLC owners, the $39 Northwest fee is worth it for same-day filing, compliance reminders, and a year of registered agent service included.

Frequently Asked Questions

How much does it cost to form an LLC in Alabama?

The state filing fee for a Certificate of Formation is $200. Alabama also requires a $25 name reservation before you can file, bringing the minimum to $225. Using Northwest Registered Agent adds $39 for formation handling plus a free first year of registered agent service, for $264 total.

Does Alabama require an annual report for LLCs?

No. Alabama eliminated the Secretary of State annual report requirement for LLCs on October 1, 2024 (Act 2024-213). However, every Alabama LLC must still file the Business Privilege Tax Return (Form PPT) with ALDOR by April 15 each year, with a minimum tax of $50.

Is a registered agent required in Alabama?

Yes. Every Alabama LLC must designate a registered agent with a physical street address in Alabama. The agent can be an individual Alabama resident or a business entity authorized to act as a registered agent in the state.

Does Alabama have an income tax on LLCs?

Alabama imposes a 5% state income tax on LLC pass-through income. There is no exemption for LLCs, unlike states such as Wyoming or Texas.

How long does Alabama LLC formation take?

Online filing through the Alabama Secretary of State portal typically processes within 1-2 business days. Mail filings can take several weeks.

Related Guides

Why I Choose Northwest Registered Agent

Frédéric Deltour

After forming 3 LLCs myself and helping clients through the process, I keep coming back to Northwest Registered Agent. Here is why:

  • Remarkable Customer Support: Quick, human responses every time.
  • Caring & Privacy-Focused: Genuine service with full respect for your privacy.
  • Lightning-Fast Formation: Often faster than promised.
  • Incredible Value: $39 includes free business address, mail scanning, phone line, business email, domain name, website, and brand protection.
  • Clear & Transparent: No hidden fees or surprises.

Ready to form your business? Choose Northwest today!

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Frédéric Deltour
Frédéric Deltour Entrepreneur, Business Consultant & Author · 22+ years experience

Frédéric has founded and operated businesses across multiple countries, including 3 LLCs formed using Northwest Registered Agent. He holds certifications as a holistic coach and therapist trainer, is a published author, and has been featured in Le Parisien, IMDb, Goodreads, and international encyclopedias.

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