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Register your business in Alabama

Reserve the name, then file a Certificate of Formation. The fee, the county share, and what a sole proprietor files instead.

Checked against official sources on

General information, not legal or tax advice. Requirements vary and change, so confirm current instructions with the official source before you act, and ask a CPA or attorney about your situation.

LLCs and corporations file a certificate with the Alabama Secretary of State1. The name is reserved first. A sole proprietorship has no formation filing. A name you trade under, other than the legal name, can be registered as a trade name. It is not the same filing as the entity name.

What’s different in Alabama

  • Reserve the name before you form the company. The LLC page requires a Certificate of Name Reservation before the formation documents1.
  • $1006 of the $2001 formation fee goes to a county. The Secretary of State sends it to the county where the registered agent’s office is.
  • There is no annual report at the Secretary of State. Corporations no longer file an annual report with the Secretary of State3. The yearly filing is the business privilege tax: Stay compliant.
  • Two official prices for an online name reservation. The fee schedule says $2810. The domestic form says $27.759.
  • The corporation form has two titles for one filing. The web page says Domestic Business Corporation Certificate of Formation2. The PDF says Certificate of Incorporation7. The corporation law treats the two names as the same document.

Do this

  1. Pick your structure. LLC, corporation, nonprofit, partnership, or sole proprietorship. A sole proprietor has no formation filing and can skip to the trade name step if the legal name is not the name you will use. Pick an entity compares them.
  2. Search the name, then reserve it. On the Secretary of State site, open Business Entity Search, as the reservation form describes. An LLC name must contain Limited Liability Company, or L.L.C. or LLC. A corporation name must include Corporation or Incorporated, or Inc. or Corp.2 The name must be distinguishable on the index from existing names, ignoring entity designations such as LLC or Inc. Then file a Certificate of Name Reservation before the formation documents1. Mail is $25. Online, the fee schedule says $2810 and the domestic form says $27.759.* Check the total on the payment screen. Section 10A-1-5.14 says the Secretary of State holds the name until the earlier of one year after the application is accepted, or the day you file a written withdrawal. Section 10A-1-5.15 says you may renew it for successive one-year periods by filing and paying during the 90 days before it expires. The reservation form does not print those terms. Use the date on the certificate. Search the web and the federal trademark database too.
  3. Name one registered agent with an Alabama street address. The certificate asks for only one registered agent, at an Alabama street address, not a post office box6. Section 10A-1-5.31 says the agent may be an individual who lives in Alabama, or a domestic entity, or a foreign entity registered to do business in Alabama. The agent must keep a business office at the same address. The agent may not work only through a virtual office, a mail-forwarding service, or both. The office must be a street address where process can be handed to the agent. It is not required to be the company’s place of business. It may not be only a mailbox service or a telephone answering service. Changing the agent later is $100. A resignation is no fee10.
  4. File the certificate. The fee depends on the structure, below. The name reservation certificate has to be attached. You can file online, in the time it takes to type the request, according to the form. Online fees are the statutory fee plus a portal fee for the vendor10, and the fee schedule does not print the online total for a formation.* Check the total on the payment screen. The form does not state a separate review time for a paper filing.* A card payment on a paper filing adds 3 percent of the charge plus 2 dollars, and the stamped filing does not show it. A dishonored check is $30, and the filing is removed from the index. You may delay the effective time up to the 906th day after you sign.
  5. If the name sounds like a licensed profession, a bank, or an insurer, bring the extra letter. For a professional designation, bring a copy of one member's or officer's Alabama license, or a letter from the licensing agency, when the name uses a professional designation such as engineer, architect, attorney, or doctor. For a bank or an insurer, bring a letter from the Alabama Banking Department for a banking name, and from the Insurance Commissioner for an insurance name9.
  6. Register a trade name only if you want the state record. Details are below. It does not replace the entity name reservation.
  7. Calendar the privilege tax. There is no Secretary of State annual report. The business privilege tax can be due within months of formation: Get your tax IDs and Stay compliant.

By structure

LLC

File a Certificate of Formation for $200. The certificate says the company has at least one member. You can mark it as series, professional, or nonprofit, by checking the box on the same certificate. The same $200 covers those boxes. The fee schedule does not list a separate professional-LLC price. Of the $2001, the state sends $1006 to the county of the registered agent. That county is why the address matters before you pay.

Corporation

The corporations page says to file a Domestic Business Corporation Certificate of Formation for $200. The PDF is titled a Certificate of Incorporation7 and says the processing fee is $200. Both titles name the same filing: Section 10A-2A-1.40 of the Business Corporation Law, as amended by a 2024 act, says the term certificate of incorporation is synonymous with the term certificate of formation16. Use the form the site gives you when you file. The name must include Corporation or Incorporated, or Inc. or Corp. The certificate asks for the stock the corporation is authorized to issue. The fee schedule does not add a per-share amount on top of the $2002.

A benefit corporation name must contain benefit corporation, B.C., or BC, and may not contain incorporated9.

S corporation status is a federal election. Alabama’s income return for an S corporation is on Get your tax IDs.

Nonprofit

File for $200. The name does not have to include Corporation, Incorporated, Inc., or Corp.2 You still reserve the name first. 501(c)(3) status is a separate application to the IRS. If the nonprofit has business income, a calendar-year return is due June 1518. Past formation, the rest of this series is written for for-profit businesses.

Partnership

A limited liability partnership registers for $200. The name must contain Limited Liability Partnership, or L.L.P. or LLP5.

A general partnership is not formed by a certificate of formation. If you file a statement the Secretary of State permits under the partnership chapter, the fee schedule lists it at $10010. A limited partnership uses the domestic certificate-of-formation line on that schedule, which is $2001 for every domestic entity type. The schedule does not print a separate limited-partnership price.

Sole proprietorship

No formation filing. Sales tax registration and any license your work needs still apply. A trade name is optional.

Trade names

The Secretary of State registers trademarks, service marks, and trade names. A trade name is used to identify the business, vocation, occupation, or profession. You file an application, three specimens, and the registration fee. The fee is $3012 and the term is five years. Rights come from adoption and use in Alabama, not from the registration. A denial does not stop you from using the name11. The Secretary of State pages read for this guide do not describe a separate county assumed-name filing.* If a bank or a county license office asks for one, use the instructions that office gives you.

Formed in another state

An LLC formed elsewhere files an application for $150 and needs a name reservation before the application1. A corporation needs a certificate of authority before transacting business in Alabama. The filing fee is $150. A foreign name reservation is $25 by mail, or $284 online. The application asks for a certification that the corporation exists as a valid entity under the law of the state where it was formed8. Neither it nor the foreign corporation page asks for a good-standing certificate from the home state. You still need an Alabama registered agent. Forming in another state covers the tradeoffs.

What you get back

A reserved name, then a filed certificate. Keep both for the EIN and the bank. The stamped filing shows the fee and does not show the card convenience fee. A professional association is the narrow exception that still renews at the Secretary of State, for $10010 a year. Everyone else watches the business privilege tax instead of an annual report.

Common questions

How much does it cost to start an LLC in Alabama?

The Secretary of State charges $200 to file a Certificate of Formation. You also reserve the name first, for $25 by mail. The state sends $100 of the formation fee to the county where the registered agent sits. A card payment adds 3 percent of the charge plus 2 dollars, and the stamped filing does not show it.

How much does it cost to incorporate in Alabama?

The Secretary of State lists $200 for a domestic business corporation and the same $200 for a nonprofit. The fee schedule does not add a per-share charter fee on top of that. The web page calls the form a Certificate of Formation. The PDF calls it a Certificate of Incorporation. Section 10A-2A-1.40 of the Code says the term certificate of incorporation is synonymous with the term certificate of formation, so both name the same filing.

Do I have to reserve my business name in Alabama?

Yes, before an LLC or corporation formation. You file a Certificate of Name Reservation before the formation documents. The reservation lasts until the earlier of one year after it is accepted or the day you withdraw it in writing. The form itself does not print that term. Read the code section linked on this page, and use the date on the certificate.

Can I be my own registered agent in Alabama?

The certificate asks for only one registered agent at an Alabama street address, not a post office box. The statute says the agent may be an individual who lives in Alabama, or an entity that is registered to do business here. The office is a street address where process can be handed to the agent. It cannot be only a virtual office, a mail-forwarding service, a mailbox service, or a telephone answering service.

Do I need a DBA in Alabama?

Not to form the company. A trade name can be registered for $30 and lasts five years. Rights come from adoption and use in Alabama, not from the registration. A denial does not stop you from using the name. That filing is separate from the name reservation an LLC or corporation has to get first.

Sources

  1. Alabama Secretary of State, LLCs
  2. Alabama Secretary of State, domestic corporations
  3. Alabama Secretary of State, business entities
  4. Alabama Secretary of State, foreign corporations
  5. Alabama Secretary of State, LLPs
  6. Alabama Secretary of State, domestic LLC certificate
  7. Alabama Secretary of State, domestic corporation certificate
  8. Alabama Secretary of State, foreign corporation application
  9. Alabama Secretary of State, domestic name reservation
  10. Alabama Secretary of State, business entity fee schedule
  11. Alabama Secretary of State, trademarks and trade names
  12. Alabama Secretary of State, trademark fee schedule
  13. Code of Alabama, duration of a name reservation
  14. Code of Alabama, renewal of a name reservation
  15. Code of Alabama, registered agent and registered office
  16. Alabama Legislature, 2024 act amending the Business Corporation Law
  17. USPTO, trademark search
  18. Alabama Department of Revenue, due dates

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