Perhaps you are hoping to form an LLC in Alabama. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Alabama.
On this page, you’ll learn about the following:
Alabama LLC Cost of Filing
Here are the costs involved in forming an LLC in Alabama.
Cost of Filing Formation Certificates
The Alabama Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Alabama Secretary of State.
Alabama Domestic LLC
- Online Filing costs $208.
- By Mail: Fill out the application form, and send it to Secretary of State Business Services, P.O. Box 5616, Montgomery, Alabama 36103-5616. Costs $200.
Alabama Foreign LLC
- Online Filing costs $156.
- By Mail: Fill out the application form, and send it to Secretary of State Business Services, P.O. Box 5616, Montgomery, Alabama 36103-5616. Costs $150.
Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.
Alabama LLC Formation Service or Registered Agent Fee
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$49 + State Fees
$299 + State Fees
$399 + State Fees
Business Permits and Licenses
The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Alabama Department of Revenue for regulatory boards or agencies requiring licensing.
Alabama Business Privilege Tax and Annual Report
Once you have your EIN or Employer Identification Number, apart from filing sales tax, once the company has completed its 2.5 months as an LLC in Alabama, it needs to pay a Business Privilege Tax (BPT). This is a requirement for all LLCs formed in Alabama.
LLCs need to pay the tax before the third week of April, i.e, 15 April, and it can vary from 0.00025% to 0.000175% according to the net worth of the LLC. The exact rate will be obtained on the basis of the income of the previous taxable year. The minimum amount that the business will have to pay for this tax is $100.
Cost Comparison Among States
Money is needed to operate a company. However, when forming an LLC, you need to pay some filing fees and other costs when forming it. Among the costs you will be facing are those of the certificate of formation, registered agent fee, cost of name reservation, and forming a foreign LLC.
Still, every state will have different costs related to forming an LLC. Suppose you are deciding where to form your LLC, then it helps to compare costs. Here’s a sample table of how to best compare costs among states to help you decide where to set up our LLC.
|Online filing fee||$200||$300||$100||$50||$125|
|LLC Annual fee||$100||$300 minimum||$50||–||$200|
|Name reservation fee||$25 for online and $28 for filing by mail||$20||$25 for online and $35 for filing by mail||$25||$30|
You can do further comparisons by checking out the costs in other states.
When it comes to having an LLC in Alabama, it won’t cost too much or too less too. Those who want to start an LLC in Alabama can go into the manufacturing sector or retail trade. Both these sectors are well known and contribute a great amount to the GDP too.
- Alabama Name Reservation: $28 for online fillings or $25 by mail
- Doing Business As (DBA): $30 for online filling or $31.20 if filing by mail
- Certified Document Copies: $10 + $2 per page.
- Certified of Good Standing: $14
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Alabama LLC: $100
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.
The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.