Why Form a Limited Liability Company (LLC) in Alabama?

$49 + $175 State Fee & 1st Year FREE Registered Agent

See Detailed Pricing

Best Cities in Alabama to Form Your LLC

Alabama has several medium to large cities with diversified economies.

Starting an LLC in Birmingham, AL

Birmingham is the largest city in the state and was formed by merging three separate towns. Birmingham started out as a major industrial and railway center, although the city and economy have changed significantly since. It was long the primary industrial center of the southern U.S.

  • Area of city: 148 square miles
  • Population: 212,000
  • Population density: 1,450 people/square mile
  • Cost of living: 9 percent below national average; housing is 14 percent cheaper
  • Time zone: CST
  • Sales tax: 10 percent

Major Industries in Birmingham, AL

Birmingham’s economy started changing in the second half of the 20th century. It moved away from industry to embrace several other sectors including insurance, education, healthcare, banking, transport, communications and power infrastructure. It is a major business center in the region.

Starting an LLC in Montgomery, AL

Montgomery is the capital of Alabama and the second-largest city in the state. Montgomery has a large military and government presence. It has also been noted for the revitalization of its downtown and business areas.

  • Area of city: 161 square miles
  • Population: 200,000
  • Population density: 1,250 people/square mile
  • Cost of living: 8 percent below national average; housing is 17 percent cheaper
  • Time zone: CST
  • Sales tax: 10 percent

Major Industries in Montgomery, AL

Montgomery has a number of strong economic sectors including crop processing, transportation, distribution, healthcare, manufacturing and government services.

Starting an LLC in Mobile, AL

Mobile is Alabama’s only coastal port, and much of the economy of the city is based on import, export, storage and distribution of goods. It is a major cultural center in the region.

  • Area of city: 180 square miles
  • Population: 193,000
  • Population density: 1,380 people/square mile
  • Cost of living: 8 percent below national average; housing is 25 percent cheaper
  • Time zone: CST
  • Sales tax: 10 percent

Major Industries in Mobile, AL

Besides the port, major industries in Mobile include steel, construction, manufacturing, healthcare, aerospace and manufacturing.

Starting an LLC in Huntsville, AL

Once a center of textiles and munitions, Huntsville now has a diversified economy.

  • Area of city: 215 square miles
  • Population: 193,000
  • Population density: 900 people/square mile
  • Cost of living: 5 percent below national average; housing is 26 percent cheaper
  • Time zone: CST
  • Sales tax: 9 percent

Major Industries in Huntsville, AL

The main sectors in Huntsville are aerospace, defense, military and technology. The city houses the second-largest research park in the U.S.

Ready to Start Your Alabama LLC?

Incfile provides a cost-effective service to help you create your Alabama LLC. We guide you through the process and handle most of the administrative steps, such as filing the Certificate of Formation on your behalf. Our basic package also provides a free Registered Agent service for the first year. If you're looking for help starting an LLC, our comprehensive services provide outstanding value.

Only $49 + State Fee To Launch Your Business

Clear Pricing. No Contracts. No Surprise.

What are the fees and requirements to form a business in Alabama?

Filing Time and Price

The state charges this amount to file a new business entity. This fee goes directly to the Secretary of State.

State Fee State Filing Time Expedited Filing Time
$175 4 Weeks 15 Business Days

Compliance Requirements

This report is mandatory and must be filed within the specified time frame in order for the entity to remain in good standing with the state. Failure to file this report can lead to the company being revoked or administratively dissolved.

Annual Report

Frequency: Annually

Due: Annual Year: April 15th Fiscal Year: 3½ months after beginning of tax year

Note: LLCs elected to be taxed as corporations follow corporation rules.

Learn more about starting a business in Alabama

Additional resources, guides, and articles for better decision making.

Select the package that works best for you.



+ $175 (state fee)

The Basics To Get You Started

Prepare & File Articles Of Organization
FREE Registered Agent for !st Year
Lifetime Customer Support

Get Started




+ $175 (state fee)

Everything from Silver +

EIN / Tax ID Number
Personalized Operating Agreement
Customized LLC Kit

Get Started




+ $175 (state fee)

Everything from Silver & Gold +

Expedited Filing
UPS Delivery
Contracts Library

Get Started

Subscribe now to learn more about LLCs and starting a business