Alabama LLC costs

$200

Domestic LLC Filing Filing Fees Secretary of State: $200.00

No annual report required

The Alabama Secretary of State’s (SOS) Business Services Division will begin processing the Annual Reports for Domestic and Foreign For-Profit Corporations and Professional Corporations starting January 1, 2024. These will be the only entities required to file an Annual Report. Annual Reports from other entities will NOT be accepted.

Rule: Variable annual business privilege tax based on apportioned net worth and taxable income; the saved summary supplies rates, the exemption and initial accrual. No universal fixed annual amount.

The business privilege tax applies to all corporations and limited liability entities, including disregarded entities that conduct business in Alabama or are organized under the laws of Alabama. The business privilege tax accrues as of January l of each taxable year and is due on the corresponding federal return due date, with the exception of financial institutions. In the case of a taxpayer organized during the year, qualifying to do business in Alabama during the year, or beginning business in Alabama for the first time during the year, the tax accrues as of the date of organization, qualification, or commencement of business in the state and is due by the extended due date of the entity's corresponding federal income tax return. The business privilege tax base is the taxpayer's net worth apportioned to Alabama. The tax rate for business privilege tax is graduated based on the entity's federal taxable income apportioned to Alabama. The rates range from $0.25 to $1.75 for each $1,000 of the Alabama net worth. If the federal taxable income apportioned to Alabama is:  less than $1, the tax rate is $.25 per $1000 net worth  greater than or equal to $1 but less than $200,000, the tax rate is $1  greater than or equal to $200,000 but less than $500,000, the tax rate is $1.25  greater than or equal to $500,000 but less than $2.5M, the tax rate is $1.50  greater than or equal to $2.5M, the tax rate is $1.75. Taxpayers who would be subject to the minimum tax of $100 or less, do not have a filing requirement; the maximum privilege tax is $15,000, except for financial institutions, financial institution groups, and insurance companies that have a maximum privilege tax liability of three million dollars. A qualifying electing family limited liability entity is capped at $500. For additional questions regarding the business privilege tax requirements, contact [email protected] .

Note: Only the corporation types listed in the notice file an annual report; other entity reports are not accepted. This is separate from the conditional business privilege tax.

The Alabama Secretary of State’s (SOS) Business Services Division will begin processing the Annual Reports for Domestic and Foreign For-Profit Corporations and Professional Corporations starting January 1, 2024. These will be the only entities required to file an Annual Report. Annual Reports from other entities will NOT be accepted.

Note: Name reservation is mandatory before formation; reservation price is absent.

You must obtain a Certificate of Name Reservation [10A-1-4.02(f)] prior to filing your formation documents.

Note: The current instructions confirm the conditional filing requirement; no universal fixed tax or unconditional tax exemption is modeled.

Every corporation, limited liability entity, business trust, disregarded entity, Mailing Address for the Form PPT: and real estate investment trust (REIT) that is doing business in Alabama or has If you are not making a payment, mail your return to: qualified with the Alabama Secretary of State to do business in Alabama is Alabama Department of Revenue required to file an Alabama Business Privilege Tax Return if the privilege tax Business Privilege Tax Section due calculates to more than one hundred dollars ($100). PO Box 327431