To form an Alabama corporation, you’ll need to reserve an available corporate name, appoint a registered agent, decide how the corporation's stock will be structured, prepare a certificate of formation, and file it with the Alabama Secretary of State. Alabama also requires an approved certificate of name reservation before the state will accept the formation filing.
This guide covers the complete process, including the current filing cost, authorized shares, corporate governance, tax registration, business licenses, and ongoing Alabama compliance requirements.
Key takeaways
- You must reserve your corporate name with the Alabama Secretary of State before filing any formation documents.
- The primary formation document is the Alabama Domestic Business Corporation Certificate of Formation, filed with the Alabama Secretary of State.
- Every corporation must appoint a registered agent with a physical Alabama address before the state will accept your certificate of formation.
- The Alabama Secretary of State currently charges $200 to file a domestic business corporation's formation document, in addition to the applicable name reservation fee. Verify current fees before submitting.
- After approval, adopt bylaws, hold an organizational meeting, issue shares, obtain an EIN, register for applicable Alabama taxes, obtain required licenses, and maintain corporate records.
- Alabama corporations and LLCs differ in ownership structure, taxation, and compliance obligations. A comparison is covered later in this guide.
What you need before filing with the Alabama Secretary of State
Alabama requires you to reserve a name before the Secretary of State will accept your certificate of formation.
Here's what you need before you file:
- A corporate name that meets Alabama's naming rules
- A completed certificate of name reservation
- A designated registered agent with a physical Alabama street address
- A completed Domestic Business Corporation Certificate of Formation form
- The $200 certificate of formation filing fee, subject to change
Alabama corporate name requirements and name availability search
Your corporate name has to clear two hurdles: it must follow Alabama's naming rules, and it must be distinguishable from every other business name already on file with the Secretary of State.
Alabama law requires your corporate name to include one of these designators: "Corporation," "Incorporated," "Inc.," or "Corp." If your intended name uses restricted words like "engineer," "insurance," "bank," or "trust," you'll need a letter of approval from the relevant governing agency before you can proceed.
Your name must be distinguishable from existing names, excluding entity designations. That means "Smith Corp." and "Smith Inc." could be considered too similar to an existing "Smith Corporation."
Before reserving a name, run a search to confirm it's available. The Alabama Secretary of State provides a Business Entity Search tool. Type your intended name without the entity designator and leave the other fields blank so the system returns all entities using that name or similar variations. You can also use LegalZoom’s free corporation name check tool below as a preliminary search.
For a deeper dive, read our comprehensive guide to Alabama business names.
Free Alabama Business Name Check
Starting a business? Use our free name check tool to check your business name against the Alabama Secretary of State records.
By clicking "Check Availability," I agree to LegalZoom's Terms of Use. This search is a preliminary check of state databases and does not include variations or trademarks. Results do not guarantee name availability or compliance with legal requirements.
How to reserve your Alabama corporate name
Alabama requires a certificate of name reservation before you file formation documents. The Secretary of State won't process a certificate of formation submitted without one.
You can reserve your name two ways:
- Online: Submit the request through the Alabama Secretary of State's online portal and follow the portal's current processing instructions.
- By mail: Mail the completed form with the applicable fee to Secretary of State, Business Services, PO Box 5616, Montgomery, AL 36103. The form won't be accepted via email.
The reservation fee is currently $25 by mail or $28 online. Confirm the current reservation period, renewal rules, and fees on the Alabama Secretary of State's form or online portal before filing.
How to form an Alabama corporation: Step-by-step
Step 1: Reserve your Alabama corporate name
The name reservation process, including availability search, online or mail filing, and costs, is covered in full above. Once you have your certificate of name reservation, move to Step 2.
Step 2: Appoint an Alabama registered agent
Every Alabama corporation must designate a registered agent—a person or business entity authorized to receive legal documents, government notices, and service of process on behalf of your corporation. The agent must maintain a physical street address in Alabama (a P.O. box is not sufficient).
The registered agent must be consistently available at the Alabama address during normal business hours. A professional registered agent service may be useful for owners who travel frequently, do not maintain regular business hours at an Alabama address, or do not want to list a personal address publicly.
The registered agent's name and street address must appear on the certificate of formation, so nail down this information before you complete the form.
Step 3: Select the initial directors and determine the authorized shares
The incorporator should identify the initial directors who will oversee the corporation until shareholders elect successors. Before completing your formation document, also decide how many shares the corporation will be authorized to issue and whether it will have one or more classes or series of stock.
Authorized shares are the maximum number the corporation may issue. Issued shares are the shares the corporation has actually distributed, while outstanding shares are issued shares currently held by shareholders.
Step 4: Prepare the Alabama Domestic Business Corporation Certificate of Formation
The certificate of formation is available as a downloadable PDF from the Alabama Secretary of State's Business downloads page.
Be prepared to provide the following information:
- Attached certificate of name reservation. A copy must be attached.
- Corporate name. Use the exact one reserved in your form.
- Principal office information. Provide the physical street address for the corporation. A P.O. box is not sufficient for this purpose.
- Mailing address for the business. A P.O. box is acceptable here.
- Registered agent name and address. This will be listed in public record. You must list their physical street address, and can also provide a mailing address (if different).
- Filer information. Name, signature, physical address, and mailing address of the person filling out the form.
- Purpose of corporation. You may specify a limited purpose, or keep it broad and state “for the transaction of any lawful business” per Alabama Title 10A, Chapter 2A.
- Authorized stock. The total number of shares the corporation is authorized to issue, plus any classes or series and their rights if applicable.
- Incorporator information. Name, signature, physical address, and mailing address of at least one incorporator.
- Additional provisions. Include any optional or required provisions that apply to the corporation, such as stock class terms or professional corporation designation.
- Authorized signature. Alabama law limits individuals who may authorize the formation documents.
You may optionally provide information related to the demographics of the business ownership and operations.
Step 5: File your Alabama certificate of formation online or by mail
You can file online at alabamainteractive.org/sos. Log in or create an account, select the corporation formation option, complete the form fields, attach your certificate of name reservation, and pay by credit or debit card. Processing times vary based on filing volume and whether the submission contains errors, so check the portal for current estimates.
To file by mail, submit the following to the Secretary of State:
- Two copies of the completed certificate of formation
- Your certificate of name reservation
- A self-addressed stamped envelope
- Payment using one of the methods listed on the form
Send all of the above to the following address:
Secretary of State, Business Services
P.O. Box 5616
Montgomery, Alabama
36103
Be sure to retain a copy of the formation certificate for your own records.
Note that mail processing times vary. Contact the Secretary of State or apply online if your formation is time-sensitive.
How much it costs to form an Alabama corporation
Forming an Alabama corporation requires a name reservation fee and a $200 certificate of formation filing fee. The minimum current state cost is generally $225 by mail or $228 online, before optional expedited processing, professional services, licenses, or tax obligations. Verify current amounts before submitting.
| Cost Item | Fee |
|---|---|
| Certificate of name reservation (by mail) | $25 |
| Certificate of name reservation (online) | $28 |
| Domestic Business Corporation Certificate of Formation | $200 |
| Expedited processing (if available) | Varies |
| Business Privilege Tax Return and Annual Report | Tax and fees vary |
| Registered agent service (if using a third party) | Varies |
The $200 certificate of formation filing fee is the same whether you file online or by mail. The name reservation fee differs slightly by method. Online submission may be faster, but processing times can change.
If you appoint yourself or someone you know as registered agent, there's no additional fee. Professional registered agent services charge an annual fee that varies by provider.
What to do after your Alabama corporation is approved
Getting your certificate of formation approved is a real milestone, but your corporation isn't fully operational yet. Several steps remain.
Adopt Alabama corporate bylaws
Bylaws are internal documents governing how your corporation runs: director elections, meeting procedures, officer appointments, decision-making authority. Alabama law requires corporations to adopt bylaws. They're not filed with the Secretary of State, but they must be kept in the corporation's internal records. Bylaws help protect directors, officers, incorporators, and shareholders from liability and can help resolve disputes. Even though they’re not filed with the state, they are a formal legal document and should be carefully crafted. It’s best to consult an attorney or use a corporate bylaws service to help.
Complete the initial organizational actions
At the initial organizational meeting, or through written consent when permitted, the directors should adopt the bylaws, set the fiscal year, appoint corporate officers, approve banking resolutions, and authorize the issuance of shares. Document the actions in minutes or written consents and keep them with the corporation's records, including the certificate of formation, bylaws, stock ledger, and shareholder records.
Note: Alabama law requires corporations to record and retain meeting minutes, and that the minutes be available to stockholders by request.
Issue shares
Issuing shares formally establishes ownership. The board should approve each issuance, the corporation should record it in a stock ledger, and each shareholder should receive appropriate evidence of ownership. The corporation cannot issue more shares than the number authorized in its certificate of formation.
Obtain an EIN and file initial tax documents (if applicable)
Most corporations must obtain an employer identification number (EIN) from the IRS, a nine-digit number used for federal tax filings, payroll, and business banking. The IRS does not charge for an EIN. After receiving it, register applicable Alabama tax accounts through My Alabama Taxes based on whether the corporation has employees, sells taxable products or services, or owes other state-administered taxes.
Eligible corporations that want S corporation tax treatment generally file IRS Form 2553; the election does not change Alabama formation or governance requirements.
Open a business bank account
Once you have your EIN, open a dedicated business bank account. Maintaining separate business finances supports the corporation's separate legal identity and reduces the risk that a court could disregard the corporate form
Note: Commingling is one of several factors courts may consider in a veil-piercing dispute.
Banks commonly ask for an EIN, formation documents, bylaws, and proof that the person opening the account is authorized to act for the corporation. Requirements vary by institution, so confirm the bank's document list before applying.
Obtain licenses and open a business bank account
Before beginning operations, determine which county, municipal, professional, or industry-specific licenses apply. Alabama does not use one universal statewide license for every business, but businesses engaged in activities covered by the Alabama Business Privilege License may need state and county licenses issued through the county probate judge or license commissioner. Municipal and industry-specific requirements may also apply. LegalZoom’s business license service can help you figure out which licenses you need.
Alabama taxes and ongoing compliance requirements
Corporations whose calculated Business Privilege Tax exceeds $100 generally file the applicable Alabama Business Privilege Tax Return and Annual Report with the Alabama Department of Revenue. C corporations and certain other entities use Form CPT; S corporations and pass-through entities use Form PPT.
For taxable years beginning after December 31, 2023, taxpayers whose calculated Business Privilege Tax is $100 or less are exempt from the tax and are not required to file Forms BPT-IN, CPT, or PPT. Corporations with a calculated liability above that threshold must follow the applicable filing rules and should confirm current requirements with the Alabama Department of Revenue.
Alabama corporation vs. LLC: Which structure is right for you?
Both an Alabama corporation and an Alabama LLC are formed by filing a certificate of formation with the Alabama Secretary of State. The differences come down to how each structure is owned, governed, and taxed.
| Factor | Alabama corporation | Alabama LLC |
|---|---|---|
| Ownership | Shareholders | Members |
| Management | Board of directors and officers | Member-managed or manager-managed |
| Taxation default | C corporation (entity-level tax) | Pass-through taxation |
| Annual state filing | BPT filing depends on liability and tax classification | BPT filing depends on liability and tax classification |
| Governance formality | Higher: bylaws, board meetings, minutes | Lower: operating agreement, fewer formal requirements |
Both provide limited liability protection. The right structure depends on your ownership goals, growth plans, and tax preferences.
How LegalZoom can help you form your Alabama corporation
You can form an Alabama corporation on your own, but incomplete or inconsistent filings may be rejected or delayed, or cause problems down the line. LegalZoom offers formation services that can help prepare and submit the required documents. Our trusted process has helped millions of founders launch their business.
Our corporation formation services can assist with tasks like:
- Corporate name search and certificate of name reservation
- Domestic Business Corporation Certificate of Formation preparation and filing
- Registered agent service with a physical Alabama address
- Ongoing compliance management
FAQs about forming an Alabama corporation
Can I be my own registered agent for my Alabama corporation?
Yes, if you're an Alabama resident. Serving as your own agent means listing your name and address publicly and being available at that address during normal business hours.
How long does it take to form a corporation in Alabama?
Processing times vary based on filing method, filing volume, and whether the submission contains errors. Online filing may be faster, and expedited processing may be available for an additional fee. Check the Alabama Secretary of State's website or filing portal for current estimates.
Does an Alabama corporation pay state income tax?
Alabama generally imposes a 6.5% corporate income tax on Alabama taxable income for C corporations and other entities subject to the corporate income tax. Corporations may also have Business Privilege Tax Return and Annual Report obligations, but taxpayers whose calculated privilege tax is $100 or less are exempt from that tax and do not file Forms BPT-IN, CPT, or PPT for taxable years beginning after December 31, 2023. An eligible corporation may elect federal S corporation treatment by filing IRS Form 2553, but Alabama filing and tax consequences should be confirmed separately.
How much does it cost to start a corporation in Alabama?
The minimum current state cost is generally $225 by mail or $228 online: a $200 certificate of formation filing fee plus the applicable name reservation fee. Optional expedited processing, professional registered agent services, licenses, and tax obligations add to the total.
What are Alabama's corporate naming rules and required designators?
Your Alabama corporate name must include one of four designators: "Corporation," "Incorporated," "Inc.," or "Corp." The name must be distinguishable from all business names already on record with the Secretary of State. Restricted words such as "bank," "insurance," or "trust" require written approval from the relevant state agency. See the Code of Alabama statutes for the full legal requirements.
What is the Alabama Domestic Business Corporation Certificate of Formation?
The certificate of formation is the primary legal document that creates your Alabama corporation. It must include the corporate name, registered office and registered agent information, incorporator information, and the number of shares the corporation is authorized to issue. Follow the current state form for any additional required information and attach the approved certificate of name reservation.
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