Decide on the legal structure of your business. See our business tax structure page. Common options include:

• Sole Proprietorship
• Partnership
• Limited Liability Company (LLC)
• Corporation
• C-Corporation (C-Corp)
• S-Corporation (S-Corp)
• Nonprofit

For more information, see our Tax Structure Guide!

Before registering, ensure your desired business name is available. Alabama requires you to reserve your name prior to filing formation documents.

• Check Name Availability: Alabama Business Name Search

• Reserve Your Name: File a Name Reservation Request through the Alabama Secretary of State.

  • Fee: $25 (online) or $28 (mail).

  • Reserve a Name Online 

Submit the necessary formation documents based on your business structure:

• LLC: File a Certificate of Formation.

  • File Online 

• Corporation: File Articles of Incorporation.

  • File Online 

Fees for filing:

• LLC: $200.

• Corporation: $100 (minimum, varies based on shares).

If your business will sell goods or hire employees, you must register with the Alabama Department of Revenue.

• Sales Tax License: Apply for a State Tax ID Number.
  • Register Online
• Employer Tax Account: Register if you plan to hire employees.

Depending on your business type and location, you may need specific licenses or permits:

• Business Privilege License: Required for all businesses in Alabama.
  • Issued by your county probate office.
  • Find Your Local Probate Office
• Additional permits may vary based on industry.

To separate your personal and business finances, open a dedicated business bank account using:

• Your EIN (Employer Identification Number).
• Formation documents or operating agreement.

• Annual Reports: File the Business Privilege Tax Return annually to maintain good standing.
  • File Online
• Keep your contact information up-to-date with the Secretary of State.

• Alabama Secretary of State – Business Services

• Alabama Department of Revenue

• Small Business Development Center in Alabama