How to Start an Alabama LLC

Step 1: Choose a Unique Business Name and Complete a State Business Search

You’ll need a distinctive and original name for your LLC that isn’t being used by any other business in the state. If you’re having a hard time coming up with a name, try using Bizee’s Business Name Generator to get some ideas. You'll need to follow a few naming rules, which you can read about in detail on the Alabama Business Names page.

Once you’ve chosen a name, you’ll need to make sure it’s available in Alabama. To find out whether another company in the state is using your chosen business name, use our tool to do a business name search. You can also carry out a name search on the Alabama Secretary of State website.

The state of Alabama requires that you file a Name Reservation Request form before filing your Certificate of Formation.

Step 2: Provide an Official Business Address for your LLC

Whether it’s a home, an office building or any other physical location, every Alabama LLC must have a designated street address. It can be outside the state, but it cannot be a P.O. box.

Step 3: Assign a Registered Agent

A person who receives official legal and tax correspondence and has responsibility for filing reports with the Alabama Secretary of State is called a Registered Agent. Every Alabama LLC is required to have a Registered Agent.

This position is official and can be filled by you, another manager in the business or a dedicated Registered Agent service. If your Alabama Registered Agent is a person they must reside at a physical street address in Alabama and be around during business hours to receive important documents for your company. In Alabama, you designate your Registered Agent when you file your Certificate of Formation and formally create your business.

All of Bizee’s packages include a Registered Agent service free for the first year and just $119 per year after that. We also have an online dashboard where you can log in and easily view any document that your Registered Agent has received on your behalf.

Step 4: File a Certificate of Formation with the Alabama Secretary of State

Once you've gathered all the information for your Alabama LLC, you’ll need to file a formal document with the Alabama Secretary of State. This document, known as “Certificate of Formation,” officially creates your LLC.

You can file your Alabama Certificate of Formation online with the Secretary of State online business portal, mail a form to the Office of the Secretary of State or have Bizee do it on your behalf. The Alabama LLC filing fee is $200.

You only need to file your Certificate of Formation once, but every year after, you need to file an annual report. This is also something Bizee can remind you to do, or we can handle the paperwork for you.

What are the fees and requirements to form an Alabama LLC?

*includes online processing fees

Annual Report

Step 5: Get an Employer Identification Number (EIN) from the Internal Revenue Service

To identify your business to the IRS, you’ll need an EIN. This number is used when you file and pay taxes and submit payroll information and payments for your employees. An EIN is also required to open a business bank account. You can obtain one directly from the IRS, or Bizee can get one for you as part of the Alabama LLC formation process.

Step 6: Create an Operating Agreement

A type of "instruction manual,” this document explains how you'll run your business. An LLC Operating Agreement details how decisions will be made, how the business is divided among members and what will happen if a member leaves the company.

Some states require that a company have an Operating Agreement in place. You're not legally required to have an Alabama Operating Agreement, but it’s a good idea to have one to protect your business from any future changes and events.

Other Alabama LLC Types

Professional LLC

Some states allow certain types of businesses to form Professional Limited Liability Companies (PLLCs). This type of LLC will typically require members to be licensed, and impose other specialized requirements as well.

Unlike what is available in other states, there is no Alabama PLLC option. Instead, Alabama law lets groups of licensed professionals form an Alabama professional corporation.

Learn more about PLLC vs. LLC and which one is right for your business.

Foreign LLC

If your business operates in another state and you want to expand into Texas — or vice versa — you’ll need to form a Foreign LLC.

Learn more about Alabama Foreign LLC registration.

Helpful Resources from the State of Alabama

More Information in This Guide