Filing fee: $200 · Agency: Alabama Secretary of State
Processing time: 1 business day.
Annual report: Annual report fee: $50.
Franchise tax: Alabama does not have a franchise tax but levies a Business Privilege Tax. This tax is calculated based on the LLC's net worth, with rates ranging from $0.25 to $1.75 per $1,000 of net worth, and a maximum of $15,000. The minimum tax due is $50, and it is filed annually with the Alabama Department of Revenue.
Notes: A mandatory name reservation is required before filing the Certificate of Formation, which costs an additional $28 for online reservation. The annual report is handled through the Business Privilege Tax return filed with the Department of Revenue, not the Secretary of State.