By Jake Lawson | LLC Formation Strategist & Tax Advisor
Alabama makes you reserve your LLC name before you can form your LLC. That’s like making a dinner reservation before the restaurant exists. After helping 1,200+ entrepreneurs navigate LLC formation (including many in Sweet Home Alabama who got confused by this two-step dance), I’m here to simplify what should be simple.
Here’s Alabama’s special sauce: You need to file a Name Reservation ($28) BEFORE filing your Certificate of Formation ($200). Two separate filings, two separate fees, because Alabama loves paperwork almost as much as it loves football. Total damage: $228 minimum, plus your time and sanity.
The good news? File online and your LLC gets approved instantly. The bad news? Alabama charges you an extra $8 “processing fee” for the convenience of not using paper. Yes, they charge you more for saving them work. Welcome to government logic.
The Alabama LLC Formation Reality
Before we dive into the mechanics, understand what you’re creating: a legal shield between your business disasters and your personal assets. The Certificate of Formation is the document that brings your LLC to life in Alabama’s eyes. Without it, you’re just a person with a business dream and a target on your back.
Alabama streamlined their process in 2021—no more county probate judges involved. Now it’s all through the Secretary of State. Progress! They finally joined the 21st century, even if they’re still charging extra for online filing.
Your Two-Part Formation Process
Part 1: Name Reservation (The Appetizer)
- Cost: $28
- Processing: Instant online
- Duration: Holds your name for 120 days
- Requirement: Mandatory (unlike most states)
Part 2: Certificate of Formation (The Main Course)
- Cost: $200 (plus $8 online fee)
- Processing: Instant online or 1-2 days by mail
- Result: Your LLC exists
Filing Options: The Speed vs. Penny-Pinching Dilemma
Online Filing: The Instant Gratification Method
- Total cost: $236 ($28 name + $200 formation + $8 “convenience” fee)
- Processing: Immediate approval
- Delivery: Email within minutes
- Best for: Anyone who values time over $8
Mail Filing: The Patience Test
- Total cost: $228 ($28 name + $200 formation)
- Processing: 1-2 business days plus mail time
- Delivery: Physical mail return
- Best for: People who hate convenience fees more than waiting
Note: Government delays can sometimes extend filing times. For the latest information, see our guide on how long it takes to form an LLC in Alabama.
Pre-Flight Checklist
Before you start clicking or licking stamps, you need:
1. A Unique LLC Name
Not just unique in your mind—unique in Alabama’s database. Search before you fall in love with “Sweet Home Properties LLC” only to find seventeen others beat you to it.
Alabama name rules:
- Must include “Limited Liability Company,” “LLC,” or “L.L.C.”
- Can’t pretend to be a government agency
- Can’t be confusingly similar to existing businesses
- No profanity (this is Alabama, not HBO)
2. A Registered Agent
Someone with an Alabama street address who’s available during business hours. No PO boxes, no “somewhere near Birmingham,” no fictional addresses. This person receives legal documents when someone sues your LLC.
3. Basic Business Information
- Principal office address (can be anywhere, even out of state)
- Organizer information (the person filing the paperwork)
- Management structure decision (member-managed or manager-managed)
Online Filing: The Step-by-Step Walkthrough
Step 1: Navigate to Alabama’s Portal
Go to the Alabama Secretary of State Online Services page. Don’t Google it—scammers create fake sites that charge extra fees for free forms.
Step 2: Start with Domestic Business Filing
Click through to “Domestic Formation” and prepare for Alabama’s version of user-friendly (spoiler: it’s not).
Step 3: Enter Contact Information
This is just for the state to contact you if needed. It’s not public record, so use your real email—not that business email you haven’t set up yet.
Tip: The address and contact details you enter here are for communication purposes only. They remain private and are not included in your official LLC paperwork.
Step 4: Handle the Name Reservation
If you already have one: Enter your Reservation ID Number and move on.
If you don’t (most people):
- Enter your desired name
- Select “Domestic” for Type of Reservation
- Select “Limited Liability Company (LLC)” for Type of Entity
- Click to file both Name Reservation and Certificate of Formation together
Keep in mind: A Foreign LLC isn’t international—it’s simply an LLC from another U.S. state registering in Alabama.
Step 5: Identify the Requestor
This is who’s reserving the name. Usually you. Don’t overthink it.
Step 6: Select the County
This is where your Registered Agent is located, not where you are.
Common counties:
- Jefferson County (Birmingham)
- Mobile County (Mobile)
- Madison County (Huntsville)
- Montgomery County (Montgomery)
- Houston County (if using Northwest Registered Agent)
Step 7: Choose Filing Options
Select “Limited Liability Company” unless you’re a professional needing a PLLC (doctors, lawyers, accountants—you know who you are).
Step 8: Effective Date Strategy
Most people choose “immediately,” but here’s a pro tip: Forming in October, November, or December? Consider forward-dating to January 1st (you can go up to 90 days ahead). Saves you from partial-year tax reporting headaches.
Step 9: Enter Registered Agent Information
Tip: You can locate your Registered Agent’s address by logging into your account dashboard.
For individual agents:
- Select “Individual”
- Enter first and last name
- Enter Alabama street address
- Add mailing address if different
For commercial agents:
- Select “Organization”
- Search for their name in the system
- Enter their addresses
Step 10: Organizer Information
The person filing the paperwork. Alabama says this is “optional,” but someone has to sign the document. That someone is the organizer. Usually you.
Step 11: Document Uploads (Usually Skip)
Unless you’re dying to publicly list your LLC members (why would you?), skip this. Members are listed in your Operating Agreement, not your public filings.
Step 12: Review and Sign
Check everything twice. Alabama doesn’t fix typos for free.
Signature titles:
- Member-managed LLC: Sign as “Managing Member”
- Manager-managed LLC: Sign as “Manager” or “Member”
- Either type: Can sign as “Organizer”
Step 13: Pay the Piper
Enter payment information. Credit card, debit card, or eCheck accepted. No bitcoin, no Venmo, no IOUs.
Mail Filing: The Analog Alternative
Step 1: Download the Certificate of Formation
Get it from Alabama’s official website. Must be typed, not handwritten. Alabama clerks aren’t handwriting analysts.
Step 2: Complete the Form
Same information as online, but now you’re dealing with PDFs and printers.
Step 3: Prepare Your Package
- Two copies of the Certificate of Formation
- Copy of your Name Reservation Certificate
- Check for $200 (payable to “Secretary of State”)
- Self-addressed stamped envelope
Step 4: Mail to:
Secretary of State
Business Services
PO Box 5616
Montgomery, Alabama 36103-5616
Step 5: Wait
And wait. And check your mailbox. And wait some more.
Post-Approval: What You Get
Online filers receive:
- Email with download link (expires in 15 days—download immediately!)
- Stamped and approved Certificate of Formation
- Official proof of LLC existence
Mail filers receive:
- Physical copies returned in your self-addressed envelope
- Same stamped and approved documents
- The satisfaction of avoiding an $8 fee
Reminder: Online filings include an $8 processing charge. Information entered on this page is confidential and will not appear in public records.
Common Mistakes That Cause Rejection
Name Problems
- Using a name that’s already taken
- Forgetting the LLC designation
- Including restricted words without authorization
Registered Agent Issues
- Using a PO Box
- Out-of-state addresses
- Incomplete information
Form Errors
- Selecting wrong entity type
- Missing signatures
- Incorrect county selection
Payment Problems
- Wrong amount
- Bounced checks
- Expired cards
The Professional Service Alternative
If this sounds like too much hassle for $228, hire a formation service. They’ll handle everything for $39-300 plus state fees. It’s like hiring a mechanic instead of YouTubing car repairs—both work, but one’s definitely easier.
After Formation: Your To-Do List
Getting your Certificate approved is step one. You still need:
EIN from the IRS
Your federal tax ID. Free from the IRS, necessary for banking and taxes.
Operating Agreement
Not required by Alabama but essential for protection. Defines ownership, management, and operations.
Business Licenses
Depending on your business and location, you might need state or local licenses.
Business Privilege Tax
Alabama’s special business tax. Due annually. Miss it and face penalties.
Bank Account
Separate business banking is crucial for maintaining liability protection.
The Time and Cost Reality
Online Filing:
- Total cost: $236
- Total time: 30-45 minutes of work, instant approval
- Download time: Immediate
Mail Filing:
- Total cost: $228
- Total time: 45 minutes of work, 1-2 weeks total
- Return time: Depends on USPS
Professional Service:
- Total cost: $39-300 plus state fees
- Your time: 10 minutes
- Processing: Same as above methods
Important: Be sure to download and save your LLC approval document (the stamped and approved Certificate of Formation). The file link will expire after 15 days.
Special Situations
Professional LLCs (PLLCs)
Licensed professionals must file by mail and include copies of professional licenses. No online option. Alabama wants to verify you’re actually licensed before letting you practice through an LLC.
Foreign LLCs
Already have an LLC in another state? You need foreign qualification, not a Certificate of Formation. Different process, same Alabama complications.
Multiple Members
You don’t have to list members in your Certificate of Formation. Keep them in your Operating Agreement for privacy.
Alabama Secretary of State Contact
When you inevitably have questions:
- Phone: 334-242-5324
- Hours: Monday-Friday, 8 AM – 5 PM Central
- Pro tip: Call early in the morning or late afternoon for shorter wait times
Your Formation Action Plan
- Search your desired name (5 minutes)
- Secure your Registered Agent (10 minutes to several days)
- Decide on management structure (2 minutes of honesty)
- File online (save the $8 for more important things)
- Download your approval immediately (2 minutes)
- Complete post-formation requirements (ongoing)
Final Reality Check
Alabama’s two-step formation process is unnecessarily complicated, but it’s not rocket science. The Name Reservation requirement is unique and annoying, but it prevents name conflicts. The online processing fee is insulting, but $8 won’t break your business.
File online for instant gratification, or mail it to save eight bucks. Either way, just get it done. Your business needs legal protection more than you need to protest Alabama’s fee structure.
Remember: In Alabama, forming an LLC costs more than a decent tailgate party but less than good seats at Bryant-Denny Stadium. Perspective matters.
Ready to form your Alabama LLC without the confusion? Whether you DIY or hire help, just get protected. Your business liability isn’t waiting for you to save eight dollars.
Need professional help? For $39 plus state fees, you can skip this entire guide and let someone else deal with Alabama’s quirks.
Jake Lawson has guided 1,200+ entrepreneurs through LLC formation across all 50 states, including Alabama’s unique two-step process. He knows exactly what works and what wastes time. Get more no-BS Alabama LLC guidance at llciyo.com.