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How to start a business in Alabama

The fees, filing links and deadlines for forming and registering a business in Alabama, with the official page for each step.

Last verified October 24, 2026 General information, not legal, tax or insurance advice. Each fee shows the date we checked it on the official page. Fees change, so confirm on the official page before you pay.

LLC filing fee: $200
LLC, first year (state fees): Varies; see the notes below
Corporation filing fee: $200
Annual report: Not required
DBA filed with: State
General state license: No
Newspaper notice: No

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

To form an LLC, file Certificate of Formation with the Alabama Secretary of State, Business Entities Division for $200 (checked Oct 24, 2026) The $200 state fee is confirmed. You can file online. A corporation files Certificate of Formation for $200 (checked Oct 24, 2026) The $200 state fee is confirmed. The online total may include a portal fee that no official page states. Official pages disagree on a $10 corporate annual report (see verify list).. That filing fee is not the whole bill: see what it costs in the first year.

What does an LLC really cost in its first year in Alabama?

Filing fees are only part of the cost. Here is every state fee and minimum tax we found that a new LLC must pay to form and stay in good standing for its first year. Example: Single-member LLC filed online at standard speed, operating from day one with no employees; licenses every business must hold are counted, sales tax permits are listed separately.

State fee	Cost	When	Checked
Certificate of Name Reservation (online)	$28	before filing the Certificate of Formation	Oct 24, 2026
Certificate of Formation (online)	$200	at filing	Oct 24, 2026
Online processing fee (alabamainteractive.org)	Note Confirm this on the official page before you rely on it.	at filing	Check when you file
Business Privilege Tax initial return (BPT-IN)	$0	within 2.5 months of formation, only if tax due is over $100	Oct 24, 2026

First-year total: some fees are set locally or shown only at checkout At least $228: the $28 online name reservation plus the $200 Certificate of Formation. The online filing may add a portal fee that no official page states. No annual report, and no Business Privilege Tax or return if the tax works out to $100 or less. Excludes city and county licenses and registered agent services.

After the first year: No annual report for LLCs. A Business Privilege Tax return and payment are due each year with the federal return only if the tax is more than $100; otherwise nothing is due to the state.

Fees that apply only in some cases

State fee	Cost	When	Checked
Business Privilege Tax above the $100 exemption If net worth makes the tax more than $100 (rate .00025 of net worth)	Note Confirm this on the official page before you rely on it.	with the BPT-IN within 2.5 months of formation	Oct 24, 2026
Sales tax license (My Alabama Taxes) If you sell taxable goods or services	Note Department of Revenue pages do not say whether a fee applies.	before your first taxable sale	Check when you file
State and county business privilege license If your activity is listed in Title 40, Chapter 12; fee varies by activity and county	Note Fees vary by activity and county; not stated on the Department of Revenue page.	before starting business, from the county probate judge or license commissioner	Check when you file
Trade name registration Optional, if you want to register a trade name	$30	any time	Oct 24, 2026

Not included: city or county licenses, a registered agent service if you hire one, and optional extras such as expedited filing. Fees can change after the date shown; confirm on the official page before you pay.

Do I need to register a DBA in Alabama?

If you do business under a name that isn’t your legal name, register it as an assumed name (DBA) with the state for $30 (checked Oct 24, 2026).

How to file a DBA

Does Alabama require an annual report?

No. Not required for LLCs or corporations (checked Oct 24, 2026)

Initial report: No. The fee is $0 (checked Oct 24, 2026). Business Privilege Tax initial return (Form BPT-IN) within 2.5 months of formation, but only if the tax due is more than $100.

Does Alabama have a franchise or privilege tax?

Alabama's Business Privilege Tax applies to corporations, LLCs and disregarded entities. The rate is .00025 of net worth, with a $100 minimum tax. For tax years beginning after 2023, tax due of $100 or less is fully exempt and no return is required. So a small new LLC whose tax works out to $100 or less files nothing and pays nothing. If the tax is more than $100, the initial return (Form BPT-IN) and payment are due within 2.5 months of formation, with no extension; later returns are due with the federal return.

How do I register for state taxes in Alabama?

Register with the state revenue agency for sales tax and withholding, and open an unemployment insurance account once you hire your first employee.

Does Alabama require a general business license?

No. Alabama doesn’t issue one general business license; what you need depends on your activity and where you operate.

State and county business privilege licenses are bought from the probate judge or license commissioner in each county where the business operates, for activities listed in Title 40, Chapter 12 of the Alabama Code. The Department of Revenue's County Probate Offices Directory lists the office for all 67 counties. Cities issue their own business licenses; the Department of Revenue does not, and points to the Alabama League of Municipalities for city contacts. Act 2025-408 (effective Oct 1, 2025) adds reporting duties for cities and counties, not new requirements for businesses. Sellers request a sales tax license through My Alabama Taxes; the Department of Revenue pages do not state whether there is a fee. The state collects more than 200 local sales taxes, but some cities and counties collect their own, so sellers must check each locality.

What local licenses will I need in Alabama?

Cities and counties set their own licenses, zoning and permits. Call your city or county clerk with your business type and address before you open.

Huntsville (city)
Every new business must file a General Business Application before operating; it can be submitted online or in person, and processing takes up to 10 days. The fee is generally based on estimated first-year gross receipts, and amounts are in the linked 2026 fee schedule rather than on the page.

When do I need workers’ comp in Alabama?

5 or more employees (full- or part-time; corporate officers count toward the five).

The Alabama Department of Labor (now the Department of Workforce) says employers that regularly employ fewer than five employees, counting corporate officers, are not required to carry coverage. That small-employer exemption does not apply to businesses building, or helping on-site to build, new single-family detached homes. Employers of domestic employees, farm laborers or casual employees are not required to provide coverage but can elect to. The page does not address sole proprietors, partners or LLC members.

What else should I know about starting a business in Alabama?

You must get a Certificate of Name Reservation before filing the Certificate of Formation for an LLC or corporation. It costs $25 on paper or $28 online. The Certificate of Formation costs $200; paying a paper filing by credit card adds a 3% plus $2 card fee, and paying by check avoids it. Neither LLCs nor corporations file an annual report with the Secretary of State; the $10 corporate report described in a January 2024 Revenue notice no longer applies. New LLCs and corporations file an initial Business Privilege Tax return with the Department of Revenue within 2.5 months only if the tax due is more than $100. There is no required DBA filing; a trade name can optionally be registered with the Secretary of State on the trademark application for $30, good for five years. No newspaper publication step appears on the state's official formation pages (checked 2026-10-24).

What to double-check for Alabama?

A few details below aren't spelled out on the state's own pages. Confirm them on the official page before you file.

Note The online total for filing the Certificate of Formation is unconfirmed.
Note Official pages disagree on a corporate annual report. The Secretary of State's business entities page (current) says corporations no longer file one; a January 2024 Revenue notice and the SOS fee schedule (rev. Aug 2023) still list a $10 report. We follow the Secretary of State page. LLCs never file one.
Note No official page says whether there is a fee for an Alabama sales tax license.
Note No newspaper notice step appears on the official formation pages, but no page says outright that none is required.
Note The workers' comp page does not say how sole proprietors, partners or LLC members are counted.
Note The state and county privilege license covers only activities listed in Title 40, Chapter 12; how many small businesses that reaches has not been checked.

What to do next

Want help setting up in Alabama? Contact us

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Sources

Official pages checked on October 24, 2026.