Alabama · Start a business

How to start a business in Alabama

Alabama's state and county privilege license comes from the county probate judge or license commissioner.

As of 4 min readVermilion Vitez Team

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STATE FILING FEE$236FILEDSECRETARY OF STATEEINNONEOPENALABAMA · 10 STEPSFrom structure to open door

Short answer

To start a business in Alabama, pick a structure and file with the Secretary of State: $236 for an LLC, $200 for a corporation's articles. Then name a registered agent, get an EIN and register for state taxes. Alabama's business license rule covers many businesses.

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What do you file before you open in Alabama?

  1. Pick a structure

    Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See Alabama LLC guide, Alabama corporation guide, S corp or C corp in Alabama. By trade: cleaning business, handyman.

  2. Check and register the name

    Search the Secretary of State records before you pick a name: state name search. The Alabama Secretary of State registers trade names at the state level, with a $30.00 registration fee at filing, and a registration lasts five years. 1 See Alabama name search guide.

  3. File with the state

    Alabama charges the state filing fee once: an LLC costs $236 2 and a corporation's articles of incorporation cost $200 3. See LLC cost.

  4. Name a registered agent

    An Alabama corporation names one registered agent, and the registered office must be a street address located in Alabama with no PO boxes. 4 Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See Alabama registered agent rules.

Which accounts do you open after you file in Alabama?

  1. Get an EIN

    An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. 5

  2. Open your state tax accounts

    The Alabama Department of Revenue runs My Alabama Taxes, where new businesses register for tax accounts such as a withholding number for employers and a sales tax number for sellers of tangible personal property. 6 See Sales tax permit.

  3. Register as an employer

    The Alabama Department of Workforce says an employer becomes subject to state unemployment tax once it has had one or more workers in 20 or more different weeks, or pays wages of $1,500 or more in a calendar quarter. 7 The Alabama Department of Workforce requires every employer to report each newly hired or recalled employee within seven days of hire or reemployment, and employers with five or more employees report online. 8 The Alabama Department of Workforce says the state workers' compensation law generally covers employers of five or more employees and does not apply to domestic servants, casual employees or farm laborers. 9

What keeps your Alabama business in good standing?

  1. Check licenses and permits

    The Alabama Department of Revenue says a privilege license is required for businesses and occupations described in Title 40, Chapter 12 of the Code of Alabama, and the county probate judge or license commissioner issues it in each county where business is conducted. 10

  2. Calendar the yearly filings

    Alabama has no annual report for LLCs. See Alabama annual report.

  3. Use free local help

    Small business advising in Alabama runs through the Alabama Small Business Development Center Network. 11 The Alabama Department of Revenue's business page collects links for filing taxes, obtaining licenses and registering a business. 12

What it costs to start a business in Alabama

$236to file an LLC 2
$200to file a corporation's articles 3
$30for a trade name 1
70,672business applications filed in Alabama in 2025 13

Do you need a business license in Alabama?

Often, yes. Alabama's business license rule covers many businesses but not all of them; the conditions are in step 8. 10 Where to look up licenses: Alabama Department of Revenue business page.

  • City business license. The Alabama Department of Revenue's new-business checklist says city business licenses are issued at the city clerk's office. 14
  • Occupational permits from state boards. The Alabama Department of Revenue's new-business checklist says occupational permits come from state regulatory boards or agencies, with cosmetology and contractor boards as examples. 15

How to register a business name in Alabama

QuestionAlabama
Where it is filedWith the state 1
OfficeOffice of the Secretary of State
What it is calledtrade name
Fee$30
Term in years5

Check that the name is free first: state name search.

Also in Alabama

  • Business privilege tax initial return. The Alabama Department of Revenue says an initial business privilege tax return is due two and one-half months after an Alabama entity is incorporated or organized. 16

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Common questions

What are the steps to start a business in Alabama?

Pick a structure, file with the Secretary of State, name a registered agent, get an EIN, register for state taxes with the Alabama Department of Revenue, then handle hiring, licenses, yearly filings and local help.

What does it cost to register a business in Alabama?

In Alabama, an LLC filing is $236 and a corporation's articles of incorporation are $200.

Can I start a business in Alabama with no money?

Alabama charges $236 to file an LLC. An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. The Alabama Small Business Development Center Network offers free and confidential business advising through 10 centers at member universities across the state.

Are there small business grants in Alabama?

The Alabama Department of Economic and Community Affairs says business enterprises can get information and technical assistance on topics that include financing, procurement, start-up, expansion and accounting from the Alabama Small Business Development Center Network and other programs.

What is the Alabama SBDC?

The Alabama Small Business Development Center Network offers free and confidential business advising through 10 centers at member universities across the state.

Sources 17 links, checked Nov 12, 2026
  1. DBA or trade name registration sos.alabama.gov, checked Nov 12, 2026
  2. Official state fee schedule for LLC filings sos.alabama.gov, checked Oct 17, 2026
  3. Corporation filing sos.alabama.gov, checked Nov 7, 2026
  4. Registered agent rule sos.alabama.gov, checked Nov 7, 2026
  5. IRS: employer identification number irs.gov, checked Nov 12, 2026
  6. State tax registration revenue.alabama.gov, checked Nov 12, 2026
  7. Unemployment insurance registration workforce.alabama.gov, checked Nov 12, 2026
  8. New hire reporting workforce.alabama.gov, checked Nov 12, 2026
  9. Workers' compensation coverage workforce.alabama.gov, checked Nov 12, 2026
  10. General business license revenue.alabama.gov, checked Nov 12, 2026
  11. Small Business Development Center asbdc.org, checked Nov 12, 2026
  12. State business portal revenue.alabama.gov, checked Nov 12, 2026
  13. US Census Bureau, Business Formation Statistics (monthly file, 2025 added up) census.gov, checked Nov 12, 2026
  14. City business license revenue.alabama.gov, checked Nov 12, 2026
  15. Occupational permits from state boards revenue.alabama.gov, checked Nov 12, 2026
  16. Business privilege tax initial return revenue.alabama.gov, checked Nov 12, 2026
  17. State small business funding adeca.alabama.gov, checked Nov 12, 2026

Last verified Nov 12, 2026.

This page explains the rules; it is not legal or tax advice.

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