Free Online Calculator
Alabama LLC Annual Tax & Fee Calculator
Calculate your total costs for forming and maintaining an LLC in Alabama. No annual report fee.
Need Registered Agent Service?
Required if no AL address
First Year Total
$236
One-Time Formation Costs
Annual Fees
No annual fee required in Alabama
Very Low Ongoing Costs
Alabama has some of the lowest LLC maintenance costs. Great choice for budget-conscious business owners.
Alabama LLC Key Facts
Important information for Alabama LLC owners
No annual report fee
$100 minimum Business Privilege Tax
Higher initial filing fee ($236)
Tax based on net worth
Alabama LLC Deadlines & Due Dates
Important dates for Alabama LLC compliance
Annual Tax Due
April 15 (Business Privilege Tax)
Annual Report
April 15 each year
Processing Time
7-10 business days
Alabama LLC Forms
Required forms for Alabama LLC compliance
Alabama LLC FAQ
Common questions about Alabama LLC taxes and fees
LLC Formation and Annual Costs in Alabama (2026)
Forming an LLC in Alabama requires a $236 filing fee paid to the Alabama Secretary of State. Alabama requires an annual report but charges no fee for the filing. The state also charges a Business Privilege Tax (Minimum $100, yearly): Based on net worth, minimum $100 for small LLCs.
| Fee Type | Amount | Frequency |
|---|---|---|
| Articles of Organization (filing fee) | $236 | One-time |
| Annual Report | $0 | Yearly |
| Business Privilege Tax | Minimum $100 | Yearly |
| Registered Agent (optional, if using service) | $125/year | Yearly |
Your total first-year cost (filing fee + annual fee) is approximately $236. Ongoing costs are $0 or more per year in recurring fees.
Alabama LLC Compliance Requirements
Maintaining your Alabama LLC in good standing requires meeting several compliance obligations.
Annual Report: Alabama LLCs must file an annual report by April 15 each year. There is no fee for this filing.
Registered Agent: Every Alabama LLC must maintain a registered agent with a physical address in the state. The registered agent receives legal and tax documents on behalf of the LLC. You can serve as your own registered agent or hire a professional service (typically $125/year).
Operating Agreement: While Alabama does not legally require an operating agreement, having one is strongly recommended. It defines ownership structure, member roles, profit-sharing, and management procedures for your LLC.
EIN (Employer Identification Number): All LLCs with more than one member, or that have employees, need an EIN from the IRS. Single-member LLCs without employees can use their Social Security number but obtaining an EIN is still recommended for banking and tax purposes. Applying is free through the IRS website.
Tax Treatment of Alabama LLCs
Alabama LLCs are classified as pass-through entities for federal tax purposes. A single-member LLC is treated as a disregarded entity (reported on Schedule C of the owner's personal return), while a multi-member LLC is taxed as a partnership (filing Form 1065 with K-1s issued to each member).
Alabama taxes LLC income at rates ranging from 2% to 5% on income passed through to members. Additionally, all Alabama LLCs must pay a Business Privilege Tax based on net worth, with a minimum of $100. The Business Privilege Tax applies regardless of whether the LLC generates a profit.
S-Corp Election: Alabama LLCs can elect S-Corp tax status by filing IRS Form 2553. This can reduce self-employment taxes for profitable LLCs by splitting income between a reasonable salary (subject to payroll taxes) and distributions (not subject to SE tax). This election is typically beneficial when your LLC consistently earns over $40,000-$50,000 in annual profit.
Official Alabama Resources
- Alabama Secretary of State
Business filings
- Alabama Department of Revenue
Tax information
Fees are subject to change. This calculator provides estimates based on current Alabama law. Consult with a tax professional or attorney for advice specific to your situation. Fee information accurate as of January 12, 2026.