LLC Costs in Alabama (AL)
$425 all-in for your first year - $200 to file, $100 annual report, plus a registered agent. Alabama is $42 (11%) more expensive than the national average for first-year LLC costs.
Annual privilege tax minimum is $100 for most LLCs. Tax is based on net worth. Alabama is one of few states with a net-worth-based LLC tax.
Updated 2025 · Source: Alabama Secretary of State
Higher Articles filing fee
Higher Articles filing fee. $200 one-time SOS filing sits in the top third of Articles/formation fees nationwide.Forming an LLC in Alabama costs about $425 in the first year, top-third of the 51-row book, about 11% above the national average, ranking #40 of 51. Fees are those published by the Alabama Secretary of State; registered agent is a $125/yr market-rate line, not a vendor quote.
According to the Alabama Secretary of State fee schedule; registered agent normalized at $125/yr. See methodology. How we calculate →
Published SOS fee schedule
Fee strip AL · Alabama SOS FY 2026 · rank #40
Alabama · $425 · file $200 · no pub
- AGENT $200
- PROC $100
- VS-AVG $425
- ARTICLES #40/51
- BIENNIAL near Texas
- SCHEDULE 11% above avg
Dear-third stack: stamps derive from this state's Secretary of State fee schedule, not a recommendation of where to form. Read with tax planning against a dear SOS stack → · All 51 SOS fee rows →
How the dear-third $425 stack breaks down
- State filing fee $200
- Annual Privilege Tax (yr 1) $100
- Registered agent $125
| Cost Item | Amount |
|---|---|
| State Filing Fee | $200 |
| Annual Privilege Tax | $100 |
| Registered Agent | $125/yr |
| Expedited Filing (optional) | $100 |
| Total, First Year | $425 |
Ongoing tax burden after formation
Alabama's effective property tax rate of 0.38% ranks among the lowest nationally (#2 of 51 lowest), a bigger long-run factor than the $425 formation cost above for any LLC that owns real estate.
Sources: Tax Foundation state corporate tax rates, Census ACS effective property tax rates.
Alabama SOS fee strip (high filing)
Similar Cost States
Lower-cost escapes
Jurisdictions with a lower first-year SOS-fee total than dear-third AL:
Read our methodology - how this data is sourced, computed, and verified. Report a data error on this page.
Sources used on this page
- Alabama Secretary of State - LLC filing fee, annual-report requirement, and processing time. sos.alabama.gov
- Federation of Tax Administrators - cross-check of state fee and tax figures. taxadmin.org