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<v Dan>To start an LLC in Alabama, you reserve your name, then file a Certificate of

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<v Dan>Formation with the Alabama Secretary of State, and pay $208 online.

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<v Maya>Reserve the name first? Not file and hope?

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<v Dan>Alabama requires a Certificate of Name Reservation before you can file.

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<v Maya>This is The Business Formation Podcast.

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<v Maya>Today, Alabama for 2026, in six steps, with what it all costs and the three best

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<v Maya>ways to have it filed for you.

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<v Maya>Where do I begin?

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<v Dan>Start with the name. It needs limited liability company, L.L.C., or LLC in it.

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<v Dan>Then you reserve it.

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<v Maya>What does a reservation cost?

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<v Dan>$28 online, or $25 by mail.

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<v Maya>How long does it last?

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<v Dan>One year. And a copy gets attached to your Certificate when you file.

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<v Maya>Who can be my registered agent in Alabama?

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<v Dan>An Alabama resident or an authorized business, at an Alabama street address where

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<v Dan>legal papers can be served in person.

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<v Maya>A P.O. box?

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<v Dan>Not allowed. And the agent can't work only through a virtual office or mail

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<v Dan>forwarding.

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<v Maya>Is the address public?

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<v Dan>Yes. That's why many owners hire a commercial agent.

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<v Dan>Changing agents later costs $100.

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<v Maya>How do I file?

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<v Dan>Through the Secretary of State's online services.

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<v Dan>It's $208.

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<v Maya>And on paper?

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<v Dan>By mail it's $200, and $100 of that goes to the county where your agent is.

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<v Maya>What does the Certificate ask for?

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<v Dan>The name, your reservation, the registered agent and county, and a statement that

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<v Dan>the LLC has at least one member.

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<v Maya>I'm Maya, by the way, here with Dan.

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<v Dan>Great to have you, Maya. And note that the Certificate doesn't list the members'

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<v Dan>names.

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<v Maya>Is there a state form for the operating agreement?

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<v Dan>No. Alabama's law calls it a limited liability company agreement.

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<v Dan>You keep it with your records, and there's no state fee.

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<v Maya>Even for a one-person LLC?

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<v Dan>Alabama law says even a one-member agreement is enforceable.

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<v Dan>So put yours in writing.

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<v Maya>What goes in it?

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<v Dan>Who owns what, how profits are split, who makes decisions, and what happens if a

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<v Dan>member leaves.

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<v Maya>What about the federal side?

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<v Dan>Apply for your EIN free with the IRS at IRS.gov, after the state files your

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<v Dan>Certificate.

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<v Maya>Is it instant?

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<v Dan>If the online application is approved, the number is issued right away.

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<v Maya>Anything local?

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<v Dan>Yes. You'll also need a business license from the county probate judge or license

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<v Dan>commissioner where you do business.

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<v Maya>And the beneficial ownership report?

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<v Dan>Skip it. FinCEN no longer requires it from U.S.

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<v Dan>companies.

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<v Maya>What do I file every year?

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<v Dan>Here's the good news. Alabama LLCs don't file an annual report with the Secretary of

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<v Dan>State.

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<v Maya>Nothing at all?

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<v Dan>Keep your registered agent current.

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<v Dan>And there's a business privilege tax return with the Department of Revenue in some

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<v Dan>years.

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<v Maya>When do I owe it?

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<v Dan>The tax is based on net worth.

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<v Dan>If it works out to $100 or less, there's nothing to pay and no return to file.

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<v Dan>That covers most small LLCs.

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<v Maya>Give me the do-it-yourself total.

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<v Dan>$236 to form online. That's $28 for the name reservation plus

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<v Dan>$208 for the Certificate.

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<v Maya>And after that?

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<v Dan>There's no annual report fee, and the EIN is free.

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<v Maya>So year two costs what?

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<v Dan>Nothing to the state, as long as the privilege tax is $100 or less.

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<v Maya>Does mail cost less?

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<v Dan>Yes. The reservation is $25 and the Certificate is $200.

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<v Maya>So that's?

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<v Dan>$225 by mail, against $236 online.

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<v Maya>An $11 difference.

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<v Dan>Right. Online is $3 more on the reservation and $8 more on the Certificate.

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<v Maya>Could I be my own agent?

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<v Dan>If you're an Alabama resident with an Alabama street address where papers can be

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<v Dan>served in person, yes.

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<v Maya>And if I work from a virtual office?

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<v Dan>That doesn't qualify on its own.

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<v Dan>The address has to be a real street address.

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<v Maya>What if I want to change later?

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<v Dan>$100. So choose carefully the first time.

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<v Maya>Let me press on the license. Where does it come from?

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<v Dan>The county probate judge or license commissioner, in the county where you do

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<v Dan>business.

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<v Maya>Is that a state filing?

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<v Dan>No. It's local, separate from the Certificate.

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<v Maya>So the EIN doesn't replace it.

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<v Dan>Right. They're different steps.

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<v Maya>Why does the reservation come first?

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<v Dan>Because Alabama requires the Certificate of Name Reservation before you can file the

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<v Dan>Certificate of Formation.

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<v Maya>And it stays attached?

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<v Dan>A copy gets attached to the Certificate.

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<v Dan>So the two filings travel together.

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<v Maya>What if I take a while to get ready?

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<v Dan>The reservation holds the name for one year, so you have time.

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<v Maya>And what do I pay in total again?

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<v Dan>$28 plus $208 is $236 online.

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<v Maya>Explain the privilege tax like I'm new.

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<v Dan>It's a Department of Revenue tax based on net worth.

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<v Maya>Do small LLCs pay it?

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<v Dan>If it works out to $100 or less, there's nothing to pay and no return to file.

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<v Dan>That covers most small LLCs.

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<v Maya>And if it's more?

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<v Dan>Then you file the return. That's the only time it applies.

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<v Maya>Is it the same as an annual report?

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<v Dan>No. The Secretary of State has no annual report for Alabama LLCs at all.

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<v Maya>Is my name public on the Certificate?

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<v Dan>The Certificate doesn't list the members' names.

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<v Dan>It lists the LLC name, your reservation, the registered agent and county, and a

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<v Dan>statement that there's at least one member.

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<v Maya>So the agent's address is the public part.

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<v Dan>Yes, the agent's address is public, which is one more reason people hire a

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<v Dan>commercial agent.

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<v Maya>Give me the order of operations.

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<v Dan>Reserve the name. Choose your agent at an Alabama street address.

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<v Dan>File the Certificate online for $208.

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<v Dan>Then get your EIN, your county license, and write your operating agreement.

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<v Maya>And later?

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<v Dan>Keep your agent current, and watch the business privilege tax threshold.

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<v Maya>What if I want someone else to handle it?

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<v Dan>Here are the three best ways to file in Alabama.

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<v Dan>Number one, our pick, is Mainstay Filing, $199 a year plus the state fee.

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<v Dan>With the $236 state fee, checkout comes to $435.

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<v Maya>What does that cover?

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<v Dan>Your name reservation and Certificate of Formation filed, your EIN application, and

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<v Dan>your registered agent every year.

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<v Dan>It renews at the same $199.

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<v Maya>Number two?

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<v Dan>AL Registered Agent.org. It prepares and files your Certificate for $199 plus

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<v Dan>the state fee, also $435 at checkout.

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<v Dan>The first year of agent service is free, then it's $99 a year.

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<v Maya>And number three?

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<v Dan>Alabama Registered Agent.co. Same offer.

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<v Dan>$199 plus the state fee, first year of agent service free, then $99 a year.

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<v Maya>How do I choose?

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<v Dan>Alabama has no annual report. So from year two, numbers two and three cost less, at

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<v Dan>$99 a year for the agent alone, against $199 for Mainstay.

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<v Maya>Give me the three-year view.

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<v Dan>Mainstay is $199 a year, so $597.

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<v Dan>Number two or three is $199 in year one, then $99 in each of the next two

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<v Dan>years, for $397.

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<v Maya>A $200 gap.

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<v Dan>Yes. That's the price of one steady $199 a year, renewing at the same amount.

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<v Maya>One more pass?

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<v Dan>Reserve a name with LLC in it, name a registered agent at an Alabama street address,

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<v Dan>file the Certificate of Formation online for $208, write an operating agreement, get

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<v Dan>your free EIN, and keep your agent current.

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<v Dan>There's no annual report.

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<v Maya>The links to all three services and every official source are in the show notes.

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<v Maya>Thanks for listening to The Business Formation Podcast, and good luck with your new

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<v Maya>Alabama LLC.