The Yellowhammer State may not be as popular as some others regarding relocation, however, Alabama offers a fantastic quality of life as well as many other benefits.
If you can put the stunning landscapes, unique culture, and laid-back lifestyle to one side, you have a state in Alabama that might just be perfect for you to register a business in Alabama due to the state’s fast-growing business environment, and improving economic strength.
How much does it cost to register a business in Alabama? Not that much! Sure, it is not the very cheapest state to register a business in, but it is certainly one of the more affordable ones.
Let’s get right into the upfront costs to register a company in Alabama, whether that be an LLC, an Incorporated company, a partnership, a non-profit, or any other type of company or sole proprietor.
What is the cost to register a business in Alabama?
One of the two different types of companies (most common) you may wish to form when starting and registering a business in Alabama:
- Alabama Limited Liability Company (LLC)
- Alabama Incorporated Company (Inc.)
Of course, there are other types of structures such as sole proprietorship, a limited or general partnership, and non-profit, but the most common two are the limited liability company and corporation.
When it comes to registering your company in the U.S., it is important to be aware that the registration and renewal costs differ depending on which state you decide to register in. The type of business structure you decide on will also determine the specific costs.
If you would like to pay for the services of a formation and business filing services company to register your Alabama business the right way, they can do it for an affordable fee that ensures it is done properly and all the correct documents are filed according to the law. They will also take care of all the after-formation procedures so your business is compliant with Alabama law and legally registered.
How much does it cost to register a company in Alabama?
- Alabama LLC Initial Registration: $200
- Alabama Corporation Initial Registration: $200
- Alabama Non-Profit Initial Registration: $200
- Foreign LLC Initial Registration: $150
(this is so an out-of-state LLC can obtain foreign qualification to do business in Alabama)
- Foreign Corporation Initial Registration: $150
(this is so an out-of-state Inc. can obtain foreign qualification to do business in Alabama)
- Limited Partnership (LP) Initial Registration: $200
- Limited Liability Partnership (LLP) Initial Registration: $200
- Sole Proprietorship Initial Registration: There is no set registration fee, and you do not need to register with the Alabama Secretary of State – it varies based on the type of sole proprietor business you are setting up. Here is some more information on the topic.
The costs to register a business in Alabama noted above are the total fees you must pay but do not include several optional fees that are offered by the Alabama Secretary of State. For example, when you open a bank account or apply for credit, some financial institutions may need a certificate of existence of your company – this costs $25.00.
The costs include the initial filing fees and annual renewal fees if they are done online, and the same goes for filing by mail. However, there is an additional fee that consists of 4% of your initial registration fee when filing online.
How much does it cost to renew a company in Alabama?
According to Alabama law, any company wishing to continue doing business in the State of Alabama must file an annual report with the Secretary of State. The majority of the annual reports are significantly less than the initial filing fee, however, you must bear in mind that it is a requirement to include the filing fee with your taxation report too, which is a minimum of $100.
So, in total, you will be paying a minimum of $110 to the Secretary of State on an annual basis to keep your business moving in the right direction, avoiding any unwanted fines.
Annual Fees to renew your business in Alabama:
- Annual Fee for an LLC in Alabama: $10
- Annual Fee for a Corporation in Alabama: $10
- Annual Fee for a Alabama Non-Profit: $10
- Annual Fee for a Foreign LLC: $10
- Annual Fee for a Foreign Corporation: $10
- Annual Fee for a Limited Partnership (LP): $10
- Annual Fee for a Limited Liability Partnership (LLP): $10
- Annual Fee for a Sole Proprietor: This can vary based on the type of business you have and there may be annual taxes and reporting fees to pay too.
The above annual reporting fees for businesses are the minimum you must pay, and there are optional fees and additional state fees a business entity may need to pay should you wish to make changes during the year, rather than when your annual renewal is filed.
Other Alabama Corporations Division Filing Fees
As a business owner or soon-to-be owner of an Alabama company, you should be aware of the other various fees that are charged by the Corporations Division.
- Amended and Restated Certificate: $100.00
- Amended annual registration: $100.00
- Certificate of Conversion: $100.00 (plus new entity filing fees, if applicable)
- Certificate of Dissolution: $100.00 (learn how to dissolve a business in Alabama)
- Statement of Correction: $100.00 (per party)
- Notice of Cancellation: $100.00
- Name Reservation: $25.00
- Resignation of Registered Agent: No Fee
- Statement of Correction: $100.00
- Statement of Termination: $100.00
One of the most important fees to remember is the late filing fee. In Alabama, they impose a late fee if you file your annual report after April 15th of each year, however, you can file as early as January 1st. The state fee is 10% of the tax due for your business or you will pay $50.00 outright, whichever is a higher fee.
Alabama Secretary of State Corporations Division Contact Details
Mailing Address and Contact Information:
Secretary of State
State Capitol Building – Suite S-105
600 Dexter Avenue
Montgomery, AL 36130
Hours: 8:00 a.m. – 5 p.m. EST