Form an LLC in Alabama for Free

Inc Authority, our partner, is a leading free LLC formation service that’s helped thousands of businesses start their operations nationwide.

Your LLC in Alabama could be the next one.

Start Your LLC for Free

1-Year Registered Agent Service Free

Inc Authority will help you form an LLC in Alabama for free so you can concentrate on other things.

Based on your chosen plan, they'll file for your LLC as quickly as you need for a quick start.

You also get 1 year of Registered Agent service as a part of their LLC registration plans in Alabama.

Things You Must Know Before Starting Your LLC in Alabama

Before you start your LLC in Alabama, you must get a clear idea of the many requirements and compliances you must fulfill to launch your business legally. Failing to do so may lead to legal issues and other hurdles in the future, which could disrupt your business.

  • Any LLC formed outside the state of Alabama is considered a foreign LLC and it must get itself registered in the state as one to do business. You would have to pay a different fee for it.
  • LLCs are required to pay the Business Privilege Tax in Alabama and must file a return for the same. 
  • You need to pay fees to the Alabama Secretary of State to form an LLC, even a domestic one. The filing fees involved for a foreign LLC are less, though.

So, even though it may cost you a little to get started with your LLC in Alabama, the efforts are well worth it as they give you access to the state’s bustling industry. And given that the costs for foreign LLC are lesser, you must weigh the pros and cons of each before going ahead.

And if you have the right partner in the process, you won’t have to pay a penny more than the filing fees. That’s exactly what you get with Inc Authority. So, get started right away!


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Choose a Name for Your LLC 

Before you can start your new LLC in Alabama, it’s important to choose a name for it. The business name you choose for your LLC must be unique and also comply with the LLC naming rules of the state of Alabama.

Some things to keep in mind include:

  • The name must use LLC, Limited Liability Company, or L.L.C.
  • You must choose a unique name that’s not used by any other business in the state. Verify this with the state’s business name database.
  • Don’t use restricted words (like bank) and the name must not include any names of federal agencies like CIA, FBI, etc.

Choose a Name for Your LLC
Reserve your LLC Business Name

Reserve your LLC Business Name

Once you’ve chosen a business name, you need to reserve it to ensure no other company ends up picking it before you do. You can file an application to reserve your business name for up to 90 days. It’s also possible to renew this duration.

Additionally, it’s important to purchase a domain name for your business. This will ensure that no one else picks it up as it could harm your brand at a later stage. It’s also a good idea to claim your social media handles before anyone else does.

Hire a Registered Agent

The state of Alabama requires businesses to have a Registered Agent within the state who can receive documentation and legal communications on their behalf. While you can be your own Registered Agent, you’d have to be present at the registered office during all normal working hours. 

Instead, you could hire Inc Authority as your Registered Agent and have them receive the communication for you. They’ll even share the received communication with you instantly so you can act upon it.

This is especially helpful for foreign LLCs that may not have an office in the state of Alabama.

Choose Your LLC Type

Choose Your LLC Type

When you start your LLC in Alabama, you’ll also need to choose your LLC type. Now, this decision may be simple if you’re starting a new business. You’d have to opt for a domestic LLC. But if you have a business in another state, you could choose to start a domestic or foreign LLC. 

Make your choice well as the filing fees for foreign LLCs are just $150 while domestic Alabama LLCs will cost $200.

File Your Certificate of Formation

To formally start your LLC in Alabama, you have to file your Certificate of Formation with the Secretary of State. This is essentially the Articles of Organization.

You’ll need to prepare your Alabama LLC Certificate of Formation and submit it to the Secretary of State to get your LLC formation process started. Inc Authority will handle this process for you, so all you have to do is provide the required documents and information and you’re good to go.

File Your Certificate of Formation
Draft Your Alabama LLC Operating Agreement

Draft Your Alabama LLC Operating Agreement

You’ll also need to create an LLC Operating Agreement for your business in Alabama. This document essentially outlines how your LLC will conduct business. It includes things like:

  • Roles and responsibilities of the LLC members
  • Name and address of the Registered Agent
  • Whether the LLC will be managed by members or managers
  • Contribution of members and their share of profits
  • Procedure to add or remove members from the Alabama LLC

The Operating Agreement comes in handy when any organizational issues pop up. It’s also a handy document that helps keep your organization’s operations running smoothly. If you don’t have an agreement in place, the courts will take decisions related to your business in case of any legal disputes within the members.

Receive Your Formation Certificate

Your LLC in Alabama isn’t legally formed until now. While you’ve filed and submitted your Certificate of Formation to the Secretary of State, your business only starts legally when this certificate is approved. 

So, once the Secretary of State approves your application, you’ll receive your Certificate of Formation confirming your LLC formally exists in the state of Alabama. You have to use this certificate to apply for your business bank account and EIN, among other things.

Receive Your Formation Certificate
Apply for a Federal Employee Identity Number (EIN)

Apply for Your Employee Identity Number (EIN)

If you want to hire employees or conduct even the most basic business transactions like sending and receiving payments, you’ll need to get an Employer Identification Number (EIN). This is basically your LLC’s federal tax ID number. It’s necessary to get an EIN for every LLC in Alabama, so make sure you apply for it before you start your operations.

Open a Business Bank Account

It’s imperative that you open a separate bank account for your business to conduct transactions for it. This will help keep your business and personal finances separate—something that’s important to maintain the limited liability cover of LLCs. 

By opening your business bank account, you’ll be able to make and receive payments for your products or services. To open one, you’ll need to submit your Certificate of Formation, EIN, and other personal identification documents as requested by the bank. 

Open a Business Bank Account
Keep Records in Registered Office

Keep Records in Registered Office

The state of Alabama requires you to keep certain important documents in your registered office. Some of the documents you need to have in your LLCs office include:

  • A list of all the members of your Alabama LLC along with their updated addresses.
  • A copy of your Certificate of Formation along with any amendments that you may have made.
  • Your LLC’s Operating Agreement or its copy.
  • Any financial statements you’ve filed with the Department of Revenue. 

It’s important to keep these documents handy in your office to remain in good standing with the state and ensure smooth business continuity. 

Get Business Licenses and Permits

While your LLC may be operational by now, it’s important to get certain licenses and permits for it to operate legally. These will completely depend on the nature of your business and you’ll need to check if you need these licenses at both the state and federal levels. 

For instance, you may need a fire safety license if you run a restaurant or eatery. Similarly, if you intend to serve liquor, you may need a liquor license from the state. 

Get Business Licenses and Permits
File Your Biennial Reports

File Business Privilege Tax Return

Every business in Alabama is required to file an Alabama Business Privilege tax return with the Department of Revenue according to Alabama Law. This must be done on or before 3.5 months of the tax year for your new LLC in Alabama. 

The rate of Business Privilege tax varies in Alabama based on the revenue of your new LLC. So make sure you’re representing your revenues accurately in your return and paying the relevant tax to keep your business in the good books of the state of Alabama.

Why Select Inc Authority to Form Your LLC in Alabama

For the simple reason that it enables you to start your LLC quickly without having to struggle with legal procedures. Add to that the fact that Inc Authority is one of the leading names, well-known for its business formation services in Alabama. Here’s why you should choose them.

Completely Free

Completely Free

When you work with our partners, Inc Authority, you won’t have to spend a penny more than the filing fee to start your LLC.

You won’t be charged any service fees unless you want urgent filing. Basic LLC filing services are completely free of charge.

Proven Track Record

Proven Track Record

Inc Authority has helped thousands of entrepreneurs form their LLCs without any fees in multiple states, including Alabama.

They have an enviable 4.9 out of 5 star rating on Trustpilot from over 24,000 reviews — a testimony to their services.

Easy Formation

Easy Formation

Inc Authority takes all the hassle away from the LLC formation process. When you work with them, you don’t have to do anything. 

From filing your Certificate of Formation and finding a Registered agent to getting your EIN, Inc Authority does it all for you—for free.

Form Your LLC with Inc Authority


Here are the features you’ll get with the free plan:

  • Business name check: You can use Inc Authority’s website to quickly check if your desired business name is already in use within your state by using their free search tool.
  • Registered Agent services: Inc Authority will work as your Registered Agent for one year for free.
  • Digital document storage: Your business formation documents like Certificate of Formation will be saved digitally.
  • Tax advisory: Inc Authority will help with your taxation, including the Business Privilege Tax.
  • LLC formation: From filing your Certificate of Formation to paying the filing fees,
  • S-Corp election and filing: You might want to get your LLC taxed as an S-Corp. If that’s the case, Inc Authority will do the S-Corp filing for your LLC in Alabama without any additional fees.
  • Business funding analysis: You may need some financial support in the form of funding or debt. Inc Authority will analyze your business needs and suggest the best modes of financing for your new LLC in Alabama. 

In a nutshell, the free plan has everything you need to get your LLC off the ground in the state of Alabama. You only need to pay the state filing fee, and Inc Authority will do the filing process for you. 

Price: Free



Starting an LLC in Alabama isn’t a costly affair. You just have to pay your filing fees of $200 for a domestic LLC and $150 for a foreign LLC. When you file for it with Inc Authority, you don’t need to pay a penny more.

The things you need for starting an LLC include:

  • LLC name registration
  • Certificate of Formation
  • LLC Operating Agreement
  • Registered Agent
  • EIN (Employer Identification Number)

To get your free LLC in Alabama, all you need to do is connect with Inc Authority and they’ll take care of your LLC formation process in Alabama for free. Read the blog for more information.

Yes, as an LLC owner in Alabama, you must get a Business Privilege License for your LLC business in Alabama. This is legally required to run your business in the state. You also have to file the Business Privilege Tax return for the same.

Typically, it takes anywhere between a week to 10 working days for getting your LLC approved in Alabama. Online filings are typically approved faster. However, you may need some time to prepare for filing your LLC. This period varies based on the plan you select with Inc Authority.