Starting a Business in Alabama
LLC filing: $200 | Corp filing: $200 | Business-friendly score: 6.5/10
Business Environment at a Glance
6.5/10
Business-Friendly Score
2% - 5%
Income Tax
4%
State Sales Tax
$7.25
Minimum Wage
Business Filing Fees in Alabama
| Item | Cost | Details |
|---|---|---|
| LLC Filing Fee | $200 | One-time, filed with Secretary of State |
| LLC Annual Fee | $0 | No annual fee required |
| Corporation Filing Fee | $200 | One-time, Articles of Incorporation |
| Corporation Annual Fee | $0 | No annual fee required |
Tax Rates
| State Income Tax | 2% - 5% |
| Corporate Tax Rate | 6.5% |
| State Sales Tax | 4% |
| Max Local Sales Tax | 7.5% |
| Minimum Wage | $7.25/hr |
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Alabama Special Requirements
- Alabama Business Privilege Tax required annually
- County-level business license required in most counties
- Sales tax license required for retail businesses
- Workers compensation insurance required for 5+ employees