To form an Alabama LLC, you file a certificate of formation with the Alabama Secretary of State, and the Code of Alabama, section 10A-1-4.31, sets that fee at $200, as of October 2026. Most later filings cost $100, and before you trade you'll also need a state and county business privilege licence from the probate judge or licence commissioner in each county where you do business.
Alabama is one of the states where the filing fees sit in the statute itself, not just on an agency web page. That's useful, because it means the numbers don't move without a change in the law. It also means there's a second step a lot of new owners miss: the Secretary of State forms the company, but the licence to trade comes from the county. Here's how both parts work.
Alabama LLC fees set by the Code of Alabama
Section 10A-1-4.31 lists what the Secretary of State collects when a filing is delivered. These are the lines that matter for an LLC, as of October 2026:
| Filing with the Secretary of State | Fee in section 10A-1-4.31 |
|---|---|
| Certificate of formation (all entities) | $200 |
| Amendment or restated certificate of formation | $100 |
| Name reservation, or notice of transfer of a name reservation | $25 |
| Certificate, articles or statement of dissolution or cancellation | $100 |
| Foreign entity registration | $150 |
| Certificate of existence | $25 |
| Merger, conversion or share exchange | $100 |
| Any other filing under the title | $100 |
Two details are worth knowing. First, the certificate of existence fee of $25 can be waived by the Secretary of State during a declared state of emergency that makes compliance impossible or unreasonable. Second, the statute also sets fees for filings delivered to the judge of probate instead of the Secretary of State, such as $100 for a certified copy of a statement of authority, and $5 for a certified copy of a merger or conversion filed under the listed chapters.
What the $200 buys you, and what it doesn't
The $200 certificate of formation creates the company. It doesn't give you permission to trade, it doesn't register you for state taxes, and it doesn't cover the yearly paperwork. That's why it's worth budgeting for the whole first year, not just the filing. Here's the order most founders follow:
- Check the name is free with the Secretary of State. If you need to hold it while you prepare, a name reservation is $25.
- Choose a registered agent with an Alabama address who can accept legal papers for the company.
- File the certificate of formation and pay the $200 fee.
- Write an operating agreement so the members agree, in writing, how the company is run and who owns what.
- Get your business privilege licence from the county, and any city licence, before you open.
- Register with the Alabama Department of Revenue for any taxes your business will collect or pay.
The county business privilege licence every Alabama LLC needs
This is the step that surprises people moving from other states. The Alabama Department of Revenue says a privilege licence is required of every person, firm, company or corporation engaged in any business, vocation, occupation or profession described in Title 40, Chapter 12 of the Code of Alabama.
- The state and county licences are issued by the county probate judge or licence commissioner in the county where the business is located.
- Unless the law says otherwise, a licence is needed in every county where you do business, not just your home county.
- The Department of Revenue doesn't administer city licences, so you need to check with every city office where you'll work.
- The Department publishes a Handbook of Privilege and Store Licenses, and an interest rate factor chart for late licences that it updates, most recently with a chart effective October 1, 2026.
So if you run a service business that works across county lines, map out where you'll be working before you apply. A contractor based in one county who takes jobs in two others may need to deal with three probate offices, plus each city.
Changing or closing an Alabama LLC later
Most changes after formation are $100 under the statute: amending or restating the certificate, a merger or conversion, and dissolution or cancellation. Any other filing under the title is also $100 unless a different fee is listed. If you'd like proof the company exists, for a bank or a contract, a certificate of existence is $25.
If your company was formed in another state and you want to trade in Alabama, you'll register it as a foreign entity for $150. If you're weighing that against forming a new Alabama company, our guide to the foreign LLC route walks through the trade-offs.
Budgeting for your first year as an Alabama LLC
Put the state fees and the local ones in separate columns. The state side is fixed by statute: $200 to form, $25 if you reserve the name first, and $100 for most changes later. The local side depends on your trade and your counties, because the privilege licence is set under Title 40, Chapter 12 and issued county by county. Ask each probate office for its figure before you commit to working there, and add any city licence on top. That way your first year's cost is a number you've checked, not a guess.
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State rules differ, and the Oklahoma business license guide covers another state filing.
Mistakes to avoid with an Alabama LLC
- Treating the $200 formation as the only cost. The county privilege licence and any city licence come on top.
- Licensing in one county when you work in several.
- Forgetting the city. The Department of Revenue says it doesn't administer municipal licences, so the state won't remind you.
- Skipping the operating agreement. The state doesn't ask to see it, but it's what settles disputes between members.
For the official steps in another state, see the Virginia DBA guide.
Frequently asked questions
How much does it cost to form an LLC in Alabama?
The Code of Alabama, section 10A-1-4.31, sets the certificate of formation fee at $200, as of October 2026. A name reservation is $25 if you want to hold the name first.
Do I need a business license for an Alabama LLC?
Yes. The Alabama Department of Revenue says a privilege licence is required of every business described in Title 40, Chapter 12. The state and county licences are issued by the county probate judge or licence commissioner, and cities have their own licences.
How much does it cost to amend an Alabama LLC?
An amendment or restated certificate of formation is $100 under section 10A-1-4.31, as of October 2026.
How much is a foreign LLC registration in Alabama?
Foreign entity registration is $150 under section 10A-1-4.31, as of October 2026.
Who issues business licences in Alabama?
The county probate judge or licence commissioner issues the state and county licences in the county where the business is located. The Department of Revenue doesn't administer city licences, so you check with each city office.
