Cheapest LLC formation in Alabama

What does the state of Alabama charge to form an LLC?

Alabama sets two charges every new LLC pays: the reservation of its name and the Certificate of Formation filing fee. No provider can lower either one, and package prices are quoted before them.

The Certificate of Formation costs $200, filed online or by mail. You pay it whether you file through the state's site yourself or a service files for you.¹

The name reservation is not optional here. The Secretary of State's LLC page says "You must obtain a Certificate of Name Reservation" before the formation documents. It costs $25 by mail, or $28 online for non-subscribers. Budget for it from the start.²

An LLC already formed in another state pays a different fixed cost. It registers as a foreign entity for $150 and files no Certificate of Formation.²

The state doesn't publish an expedite fee for LLC filings, and it says online filing can be done in the time it takes to type this request.⁷

What raises the cost of an Alabama LLC?

Four things lift the bill above the state fees: the registered agent and its renewal, the fee to replace that agent, package add-ons and subscriptions, and the privilege tax once an LLC grows past the exemption.

The registered agent

Every Alabama LLC needs a registered agent, and the registered office must be located at a street address in this state where process may be personally served (Ala. Code § 10A-1-5.31). You can cover it three ways.³

1. Serve yourself, if you are an Alabama resident. It costs nothing, but your street address goes in the agent field of the public record. The Alabama registered agent guide explains the rule.
2. Use an agent bundled with a formation package. Bizee includes a free first year, and doola includes the agent in its yearly Starter plan without saying for how long. After that you pay the provider's own price.
3. Pay a standalone agent from day one, at the prices in the table below.

The cost of changing agents

This one is easy to miss. Replacing your agent means filing the Change of Registered Agent or Registered Office by Entity, and the state charges $100 for it. A bundled free year can look like a saving, but if you later dislike the renewal price, leaving costs that state fee plus any notice period the provider sets. Harbor Compliance, for example, needs notice at least 90 days before the end of the current term. That is why the renewal price deserves a look before you choose the bundle. Steps for a switch are in how to change a registered agent.^{8, 9}

Add-ons, rush fees and trials

Checkouts offer an EIN, an operating agreement, a business address and compliance plans, each either sold separately or folded into a pricier tier. The state doesn't publish an expedite fee for LLC filings, so the rush fees in checkouts are the providers' own. ZenBusiness lists a Rush upgrade +$79 on Starter, and InCorp a $50.00 InCorp expedite fee. Since the state's own online filing is quick, ask what the rush actually speeds up. Trials can also turn into charges. Swyft Filings' compliance service comes with a 14-day free trial then auto-charged, and ZenBusiness's Starter includes Worry-Free Compliance free for 1 year (then $199/yr).^{10, 11, 12}

The privilege tax

Alabama's business privilege tax is based on net worth. A new LLC may owe the initial return (Form BPT-IN), which is not required if the tax is $100 or less; after that, the yearly return is due March 15 for calendar-year LLCs. For a small LLC under the exemption, the cost is zero. Above it, the tax is a real yearly cost that no formation package removes. The Alabama compliance page covers the returns in detail.^{6, 13}

Which providers have the lowest published prices for an Alabama LLC?

The table lists each provider's published agent price, renewal and cheapest formation package. Rows follow our score, highest first, with ties in editorial order, not price.

In the same order, here is what each provider's lowest-priced route adds to the Alabama state fees in year one, and what it charges after.

Tailor Brands. Lite is $0 plus state fees and doesn't list an agent, so add $199/year or serve yourself. The next tier, $199/yr plus state fees, bills every year. Tailor Brands review.^{14, 15}

ZenBusiness. Starter is $0 + state fees (does not renew). The agent is an add-on +$199/yr, with 50% off the first year ($99) when you form an LLC, then renewing at $199/yr. ZenBusiness review.^{10, 16}

LegalZoom. Basic is $0 + state filing fees. The agent is $249/year (first-time registered agent customers); it renews at the purchase rate each year, and the renewal rate is subject to change. LegalZoom review.^{17, 18}

Bizee. Basic is $0 + state fee, with the agent free for the first year. From year two it costs $149/year (ongoing annual fee), which becomes most of the ongoing bill for a small LLC under the privilege tax exemption. Bizee review.¹⁹

Swyft Filings. Basic is $0 + state fees. The agent is billed quarterly, $149 per quarter ($596/year), and the package details don't say whether an agent is included. Swyft Filings review.^{20, 21}

doola. Starter costs $297/yr and includes the agent, but the whole plan is a yearly charge, so its full price returns in year two. doola review.²²

Northwest Registered Agent. Formation is $39 + State Fees. A bundled agent year appears only on its corporation page, not its LLC page. The agent alone is $125 per year, and its auto-pay page says agent customers are automatically enrolled in Compliance Services (annual report filing), billed in annual auto-pay, and that service is $100 + state fees, charged at filing. Northwest review.^{23, 24, 25, 26}

Rocket Lawyer. Rocket Lawyer makes the first registration free with a Rocket Lawyer membership. Standard membership is $149/year with no agent. The agent is $125 with a Plus or Pro membership, so add Plus ($249/year) or Pro ($349/year) to its price. Rocket Lawyer review.^{27, 28, 29}

InCorp Services. Formation is priced starting at $99 plus state fees, with the registered agent sold separately at $129 per state per year. Its terms say renewals are billed at then-current fee. InCorp review.^{30, 31, 32}

Harbor Compliance. Formation is priced starting at $99 plus state fees. The agent is $99 first year (new customers), renewing at $159 annually. Harbor Compliance review.^{33, 34}

Agent-only prices across every state are on cheapest registered agent services.