Resources for Starting and Maintaining a Business in Alabama
At CorpNet our mission is to help you start your business and help you keep it in compliance. To assist you in your entrepreneurial journey, we’ve collected answers to the most frequently asked questions small business owners have about starting and maintaining a business in the state of Alabama.
Our goal is to provide you with a one-stop solution for all of your business, payroll tax registrations, and compliance filings. And if we can help you along the way, our team of entity filings and compliance experts is just a call away.
Quick Facts for Starting a Alabama Business
Expedited Services Available: Yes
New Business Publishing Required: No
Private Registration Available: No
Registered Agent Required: Yes
Annual Report Required: Yes
Franchise Tax Required: Yes
State Sales Tax: 4%
State Income Tax: 6.5%
Unemployment Insurance: 1% – 5.4%
DBAs do not require a registered agent.
Franchise tax is dependent on the business type. This is either a franchise tax or corporate income tax.
Alabama Business Entity Options
| Business Entity Type | State Registration Fees | Applicable Form |
| General Partnership (Registration Optional) | $200 | Statement of Partnership |
| Domestic Limited Partnership (LP) | $200 | Certificate of Formation |
| Domestic Limited Liability Partnership (LLP) | $200 | Certificate Of Formation |
| Domestic Limited Liability Limited Partnership (LLLP) | $200 | Certificate Of Formation |
| Domestic Limited Liability Company (LLC) | $200 | Certificate of Formation |
| Domestic Business Corporation | $200 | Certificate of Incorporation |
| Domestic Nonprofit Corporation | $200 | Certificate of Formation |
| Foreign Limited Liability Company (LLC) | $150 | Application for Registration |
| Foreign Professional Limited Liability Company (PLLC) | $150 | Application For Registration |
| Foreign Business Corporation | $150 | Application for Registration |
| Foreign Nonprofit Corporation | $150 | Application for Registration |
| Foreign Limited Partnership (LP) | $150 | Statement of Authority |
| Foreign Limited Liability Partnership (LLP) | $150 | Statement of Authority |
| Foreign Limited Liability Limited Partnership (LLLP) | $150 | Statement of Authority |
| Foreign Professional Corporation (Business or Nonprofit) | $150 | Application For Registration |
Not Sure Which Type of Business You Need?
Launch CorpNet’s Business Structure Wizard to get suggested entities based on your unique needs. It’s free and easy to use.
Key Alabama Government Resources
Alabama Secretary of State
PO Box 5616
Montgomery, AL 36103-5616
sos.alabama.gov
Alabama Department of Revenue
50 N. Ripley St.
Montgomery, AL 36130
revenue.alabama.gov
A Guide for Starting a Business in the State of Alabama
With a relatively low tax burden and low cost of labor, Alabama is the 14th fastest-growing state in the United States. It’s becoming the sweetheart state for business start-ups. If you’ve been thinking about forming a business in Alabama, here is a comprehensive look at the many things business owners should know and address to get their new Alabama businesses up and running.
Feeling Overwhelmed? CorpNet Is Here To Help!
Below are all the ways CorpNet can help you and your business.
Our knowledge team of experts is here to help and all our services are backed by our 100% Satisfaction Guarantee.
Business Formation and Launch
Ongoing Business Compliance
Need a Small Business Compliance Checklist?
Business compliance can slip through the cracks! As your existing business evolves, you are required to file notify the state of any changes. Many business owners lose sight of these requirements and fail to realize they haven’t met compliance requirements.
Use our compliance checklist to determine which business filings you need to perform to manage this year’s activities and changes.
Additional Resources and Articles
Compare Entities
- Business Structures Chart
- Choosing a Business Structure
- Business Structures Wizard
- Sole Proprietorship vs. Partnership
- Sole Proprietorship vs. LLC
- LLC vs. Partnership
- LLC vs. Corporation
- C Corporation vs. S Corporation
- S Corporation vs. LLC
- LLC vs. S Corp vs. C Corp
- DBA vs. LLC
- LLP vs. LLC
- LLC vs. PLLC
- Professional Corporation vs. LLC
- Single Member vs. Multiple Member LLC
- Member vs. Manager-Managed LLC
- Domestic LLC vs. Foreign LLC
Common Questions
- What is a Certificate of Incorporation?
- What is a Certificate of Registration?
- What is a Statement of Information?
- What are Articles of Incorporation?
- What are Articles of Organization?
- What is an Annual Franchise Tax Report?
- What is a Certificate of Authority?
- What is a Statement of Purpose?
- What Is a Fictitious Name?
- What is a Pass-Through Entity?
- What is the Owner of an LLC Called?
- What is the Role of an LLC Organizer?
- What Is a Registered Agent?
- What is a Statutory Agent?
- What is a Reseller License?
- What is a Corporate Resolution?
- What Is a Letter of Good Standing?
