How To Set Up An LLC In Alabama (2024 Guide)

For nearly a decade, Toni Matthews-El has published business topics ranging from cloud communication software to best steps for establishing your own LLC. In addition to Forbes Advisor, she's published articles for Medical News Today, US News and Wor.

Toni Matthews-El Staff Reviewer

For nearly a decade, Toni Matthews-El has published business topics ranging from cloud communication software to best steps for establishing your own LLC. In addition to Forbes Advisor, she's published articles for Medical News Today, US News and Wor.

Written By Toni Matthews-El Staff Reviewer

For nearly a decade, Toni Matthews-El has published business topics ranging from cloud communication software to best steps for establishing your own LLC. In addition to Forbes Advisor, she's published articles for Medical News Today, US News and Wor.

Toni Matthews-El Staff Reviewer

For nearly a decade, Toni Matthews-El has published business topics ranging from cloud communication software to best steps for establishing your own LLC. In addition to Forbes Advisor, she's published articles for Medical News Today, US News and Wor.

Staff Reviewer

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Written By

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Cassie is a deputy editor collaborating with teams around the world while living in the beautiful hills of Kentucky. Focusing on bringing growth to small businesses, she is passionate about economic development and has held positions on the boards of.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Brette Sember, J.D. contributor

Brette Sember is a retired attorney who has been writing and editing law and legal topics for more than 25 years. She is the author of more than 40 books, is a nationally recognized expert on divorce and family law and has a depth of experience that.

Updated: Apr 24, 2024, 6:34pm

Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.

How To Set Up An LLC In Alabama (2024 Guide)

Getty

Table of Contents

Alabama continues to enjoy a significant upward trend for new business ventures, with most counties adding more businesses during and after the pandemic than before. Development in 2021 alone brought $7.7 billion in new capital investment and more than 10,000 new jobs to the state. This positive growth undoubtedly drives interest in developing new companies within the “Yellowhammer State.”

Setting up an LLC in Alabama should not be complicated or confusing. It does, however, require the right amount of preparation. With that in mind, we created this guide to help you with a step-by-step approach to forming your Alabama LLC.

In the early stages of forming an LLC, there are a few essential details you need to take care of first. Read the sections below to learn what you need to handle before filing your paperwork.

Reserve Your Preferred Business Name

Avoid a disappointing waste of time by double-checking that your intended LLC name is available for use within Alabama. You can visit the Secretary of State’s Government Records Inquiry System to browse business entity records. Please note that you will have to visit the archives for any businesses formed between 1949 and 2010.

If the name you want to use has not been taken, you must file a Name Reservation Request form, available to domestic (company located in Alabama) and foreign (company from outside of Alabama) entities. The process costs $25, which can be paid by check, money order or credit card payment. You can download and mail these forms.

There is also an option to file and pay online. Be forewarned that the state will not accept any emailed documents.

When registering and submitting your business name, you must either include the words “limited liability company” or an approved abbreviation such as “LLC” or “L.L.C.”

Get a Registered Agent

A registered agent receives and handles important legal documents, such as court orders or tax forms, on behalf of your LLC. You can be your own agent as long as you are 18 and have a physical Alabama address and are available there during business hours. Being your own agent could disrupt your privacy, so you might consider hiring a registered agent service.

The cost ranges between $49 and $300 on average, in addition to other charges for special services. Compare businesses and ask questions to get the best possible deal.

Submitting Your Alabama LLC Documents

When ready, move forward with establishing your LLC in Alabama by filing documents online or downloading and turning in your forms by mail. A domestic entity must complete a Certificate of Formation; foreign entities, likewise, submit an Application for Registration. Remember to include the Name Reservation Certificate you previously received when submitting your documents.

In Alabama, domestic LLC filings cost $200. Meanwhile, foreign LLC formation is $150. Foreign LLCs must obtain a certificate of authority ahead of doing business within the state.

If you intend to mail your documents, remember to include two copies and a self-addressed stamped envelope. Mail to:

Secretary of State, Business Services
PO Box 5616
Montgomery, AL 36103

The length of the formation process depends on your method of submitting forms. If you handle everything online, it typically takes a couple of days. Otherwise, if you mail your documents, you may have to wait about a week.