Alabama · Corporation
How to Start a Corporation in Alabama
Alabama makes you reserve the name before the paperwork is even accepted. Do that first and the rest moves.
See the stepsShort answer
To start a corporation in Alabama, reserve your name, then file a Domestic Business Corporation Certificate of Formation with the Secretary of State for $200. At checkout that is $236 for Alabama plus $123.75 for our formation, $359.75 before card processing. Your yearly costs after that are the $10 annual report, collected by the Department of Revenue, and the Business Privilege Tax, which is based on your net worth in Alabama.
Last checked .How do I incorporate in Alabama, step by step?
Alabama will not accept your Certificate of Formation until you hold a Certificate of Name Reservation, so the name comes first.
Choose and check the name
The name must include Corporation or Incorporated, or Corp. or Inc. Reserve it with the Secretary of State and attach the certificate to your filing. See the Alabama name search guide.
Name a registered agent
Every corporation needs one in the state (the rule). Ours is $74.25 a year.
File domestic business corporation certificate of formation
File the Domestic Business Corporation Certificate of Formation with Alabama. The fee at our checkout is $236. Details are below.
Adopt bylaws
Bylaws are the board's rules: how directors are elected, how meetings run and how officers are chosen. Every corporation we form includes them.
Name directors, officers and issue shares
Hold an organizational meeting, record it in minutes, and issue stock to the owners.
Get an EIN
The EIN is the corporation's federal tax ID. The IRS issues it free at irs.gov.
Register for state taxes
Register with Alabama Department of Revenue: Business Privilege Tax: accrues from the date of organization and is due by the extended due date of the entity's federal income tax return. 9
File the annual report
Put the first deadline on your calendar before you file anything else. See the Alabama annual report page and the filings below.
How much does it cost to incorporate in Alabama?
| Item | Cost | When |
|---|---|---|
| State fees (what our checkout charges) | $236 | At filing |
| Our formation, bylaws included | $123.75 | At filing |
| Total for the filing | $359.75 | Before card processing |
| With our registered agent for a year (Formation + Registered Agent) | $414.20 | At filing |
| With the Day-One Bundle | $458 | At filing |
| Annual report (collected by the Department of Revenue with the Business Privilege Tax) (each year) | $10 6 | collected by the Alabama Department of Revenue for the Secretary of State |
| Registered agent after the first year | $74.25 a year | Optional |
Card processing is added at checkout and shown before you pay. State fees: $200 certificate of formation + $25 name reservation = $225; the other $11 of the $236 is not itemized on the state's fee schedule. 1 2
Alabama at a glance
| Question | Alabama |
|---|---|
| Formation filing and state fee | Domestic Business Corporation Certificate of Formation, $200 3 |
| Name rule | Must include Corporation, Incorporated, or Corp. or Inc.; a Certificate of Name Reservation is required before filing 4 |
| Registered agent | One registered agent with a street address (no PO boxes) in Alabama 5 |
| Annual report | Annual report (collected by the Department of Revenue with the Business Privilege Tax), $10, due collected by the Alabama Department of Revenue for the Secretary of State 6 |
| Franchise or minimum tax | Alabama Business Privilege Tax: based on net worth apportioned to Alabama; graduated rate; maximum $15,000, due federal return due date 7 |
| Corporate income tax | 6.5% flat 8 |
Do I need a registered agent in Alabama?
An Alabama corporation names one registered agent, and the registered office must be a street address located in Alabama with no PO boxes. 5 You can be your own agent if you have a street address in the state and are there in business hours, but the address goes on the public record. Ours, through our partner Registered Agents Inc, is $74.25 a year, or $178.20 with the formation. Alabama registered agent rules.
What goes in the Alabama domestic business corporation certificate of formation?
Send the original, one copy and your Certificate of Name Reservation. Name one registered agent and an Alabama street address as registered office, no PO box.
Which annual reports and franchise taxes will a Alabama corporation owe?
The Business Privilege Tax accrues from your date of organization and is due by the extended due date of your federal income tax return.
- Alabama's domestic for-profit annual report fee is $10, collected by the Department of Revenue for the Secretary of State. 6
- Alabama's Business Privilege Tax is based on net worth apportioned to Alabama, with no filing requirement when the tax would be $100 or less and a maximum of $15,000. 7
- An Alabama C corporation pays 6.5% of annual net income, with a deduction for federal income tax paid or accrued. 8
How do I start an S corp in Alabama?
A corporation is a C corporation unless it elects otherwise. An S corp is a tax election, not another kind of entity. The order is plain: form the corporation, get the EIN, then file IRS Form 2553 within 2 months and 15 days after start of the tax year the election takes effect (or any time in the prior tax year) 11. Alabama recognizes the federal S election; S corporations file Alabama Form 20S. 10
We file Form 2553 for $165. Run your own numbers in the calculator or read Alabama: S corp or C corp.
Should I form a corporation or an LLC in Alabama?
Shares, a board and officers. The usual choice when you plan to raise money from investors or issue stock options.
Fewer formalities and flexible ownership. Often the simpler choice for one owner or a small team.
Compare the two: How to start an LLC in Alabama.
Raising venture money? Investors usually ask for a Delaware C corporation, which you then register in Alabama as a foreign corporation. See how to start a corporation in Delaware.
What do I do after filing in Alabama?
- Adopt the bylaws and hold the first board meeting; write minutes.
- Issue stock to the owners and keep a stock ledger.
- Get the EIN, open a business bank account and keep money separate.
Form your Alabama corporation
We file it for $123.75 plus the state fee ($236), with bylaws included. Add the registered agent for $178.20 in all, or take the Day-One Bundle at $222.
Common questions
How much does it cost to incorporate in Alabama?
The Secretary of State charges $200 for the Certificate of Formation, plus the Certificate of Name Reservation you must get first.
What is the Alabama annual report fee for a corporation?
$10, collected by the Department of Revenue for the Secretary of State.
What is the Alabama Business Privilege Tax?
A tax based on net worth apportioned to Alabama. No filing is required when the tax would be $100 or less, and the maximum is $15,000.
Do I need to reserve my corporate name in Alabama?
Yes, before you file.
Sources 11 links, checked Nov 7, 2026
- Alabama: Domestic for-profit certificate of formation, $200. sos.alabama.gov, checked Nov 7, 2026
- Alabama: Name reservation, $25. sos.alabama.gov, checked Nov 7, 2026
- Alabama charges $200 to file a Domestic Business Corporation Certificate of Formation with the Secretary of State. sos.alabama.gov, checked Nov 7, 2026
- An Alabama corporation's name must include Corporation or Incorporated, or Corp. or Inc., and you must get a Certificate of Name Reservation before you file. sos.alabama.gov, checked Nov 7, 2026
- An Alabama corporation names one registered agent, and the registered office must be a street address located in Alabama with no PO boxes. sos.alabama.gov, checked Nov 7, 2026
- Alabama's domestic for-profit annual report fee is $10, collected by the Department of Revenue for the Secretary of State. sos.alabama.gov, checked Nov 7, 2026
- Alabama's Business Privilege Tax is based on net worth apportioned to Alabama, with no filing requirement when the tax would be $100 or less and a maximum of $15,000. revenue.alabama.gov, checked Nov 7, 2026
- An Alabama C corporation pays 6.5% of annual net income, with a deduction for federal income tax paid or accrued. revenue.alabama.gov, checked Nov 6, 2026
- A new Alabama corporation's Business Privilege Tax accrues from its date of organization and is due by the extended due date of its federal income tax return. revenue.alabama.gov, checked Nov 7, 2026
- Alabama recognizes the federal S election; S corporations file Alabama Form 20S. revenue.alabama.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 7, 2026.
This page explains the rules; it is not legal or tax advice.