Why does Alabama use the county Probate Judge for LLC filings?

Alabama's statute routes the Certificate of Formation through the Probate Judge in the county of the registered office, who then forwards the record to the Secretary of State, unlike most states where the Secretary of State's office receives filings directly.

Is an operating agreement required in Alabama?

It is not filed with the state, but it is the internal document that governs ownership, voting, and distributions, and banks commonly ask to see one.

Does every Alabama LLC pay the Business Privilege Tax?

Every LLC is subject to it, but a full exemption applies when the computed tax is $100 or less, for tax years beginning after December 31, 2023, so most small LLCs owe nothing and are not required to file.

Is there a statewide business license in Alabama?

No. Check with your city or county and with any state board that regulates your specific industry.

Does Alabama require an LLC annual report with the Secretary of State?

No. Alabama does not require a standard LLC to file a separate annual report with the Secretary of State. The recurring state-level obligation to track is the Business Privilege Tax return with the Department of Revenue.

What happens if I never file the Business Privilege Tax return?

Failing to file when a return is required can lead to penalties and interest from the Department of Revenue, and can put the LLC's standing at risk. Check current requirements on the Department of Revenue's Business Privilege Tax pages.

Alabama state guide - 6 lessons

How to start an LLC in Alabama

Alabama is one of the few states where an LLC formation filing does not go straight to the Secretary of State. Instead, the Certificate of Formation is filed with the Probate Judge in the county where the LLC's registered office is located, and the Probate Judge's office forwards a copy on to the Secretary of State. That two-step structure catches people who expect a single state-level filing, and it means your total cost includes a county fee on top of the state fee. This guide covers naming, the registered agent, the Probate Judge filing, tax registration, and the Business Privilege Tax in the order you will need them. See the Alabama LLC cost breakdown for current combined fees, or use Gullia Filing to form an LLC in Alabama without tracking down the right county office yourself.

Alabama LLC facts at a glance

Alabama LLC facts at a glance
Official filing agency	Alabama Secretary of State, Business Entities Division, together with the Probate Judge in the county of formation
Formation document	Certificate of Formation
State filing fee	$200
Filing methods	File with the county Probate Judge, who forwards the record to the Secretary of State, Online filing where the county Probate Office supports it, Mail to the county Probate Judge
Typical processing (recent)	5-7 business days
Typical expedited processing	3 business days for an extra $100
Registered agent	Required
Business Privilege Tax Return and Annual Report (Form PPT)	$0, due April 15 for calendar-year LLCs
Late penalty	Late-filing and late-payment penalties apply when a return is required but not filed on time; check the Alabama Department of Revenue for current amounts.
State-level business tax	Business Privilege Tax based on net worth, but Alabama fully exempts a taxpayer from filing or paying when the computed tax is $100 or less, for tax years beginning after December 31, 2023 (Act 2022-252), most small LLCs owe $0.
Publication requirement	None
Two-step filing	The Certificate of Formation is filed with the Probate Judge in the county of the LLC's registered office, not directly with the Secretary of State, and county recording fees vary by county in addition to the state filing fee.
Name reservation is mandatory before filing	Alabama requires a Certificate of Name Reservation from the Secretary of State before the Certificate of Formation can be filed with the Probate Judge; the reservation is a separate, required step rather than an optional convenience.
Series LLCs available	Alabama's LLC statute permits series LLCs, letting a single filing separate assets and liabilities into distinct series within the same entity.
Business Privilege Tax exemption for small LLCs	For tax years beginning after December 31, 2023, a taxpayer whose computed Business Privilege Tax is $100 or less owes nothing and is not required to file the return at all, which covers most small LLCs in their first years.

Processing times reflect recent official guidance and change often. Check the Alabama Secretary of State, Business Entities Division, together with the Probate Judge in the county of formation current processing calendar before you rely on a date.

File it yourself

Alabama accepts filings directly from business owners. You do not need us, or any other company, to form your LLC. Here is the official portal.

the Alabama Secretary of State's online business filing system

The Alabama lessons

Start lesson 1

Related Gullia Filing pages

Or let us file your Alabama LLC for you

Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Certificate of Formation, act as your registered agent, and track your ongoing deadlines.

Start your AL LLC See pricing

Official sources

Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team, Corporate formation specialists and registered agents