Starting a Business in Alabama

The Basics

Many Alabama businesses operate as LLCs and corporations. Learn more about Alabama corporations and LLCs below:

Alabama LLCs     Alabama Corporations

Alabama business entities are formed and regulated by the Alabama Secretary of State.

File your Certificate of Formation with the Alabama Secretary of State (corporations) or with the County Probate Court (nonprofits and LLCs) to start a business in Alabama. Our team of filing professionals can prepare and submit your paperwork to the State, and with IncFast Filing Times™ you always know how long it will take to form your company. We’ll also include website, email, and phone service at no additional upfront cost so you can get on the web and start fielding client calls in minutes.

What to Know About Doing Business in Alabama

Business Maintenance

All Alabama Corporations and LLCs Must File: 

• Name Reservation 
  Before you may file your articles with the Secretary of State, you must apply for a Certificate of Name Reservation.
• Certificate of Formation
  Nonprofits and LLCs file an original and two copies of the certificate with the Probate judge in the county where your registered office is located. Corporations file an original and one copy with the Alabama Secretary of State.
• Beneficial Ownership Information Report
  Nearly all businesses formed by filing with the state of Alabama must file a federal Beneficial Ownership Information (BOI) Report with the Financial Crimes Enforcement Network (FinCEN) following business formation. You can file online through FinCEN at no cost. Or, take advantage of our professional BOI report filing service for just $25.
• Initial Business Privilege Tax Return
  Alabama corporations and LLCs have to file the Business Privilege Tax with the AL Department of Revenue within 2.5 months after formation. There is a $100 minimum tax.

Alabama Business Taxes

Corporate Income Tax
The corporate income tax rate in Alabama is 6.5%.

Personal Income Tax
Personal income taxes in Alabama are as follows:

2% on income from $0-$1000
3% on income from $1000-$6000
4% on income over $6000