The cheapest way to form an Alabama LLC is to file directly with the Alabama Secretary of State — the state filing fee is always $200 and cannot be reduced. Using a formation service costs $0–$149 more in service fees on top of the state fee. The real question is whether saving $50–$100 is worth doing it yourself.
Alabama LLC formation cost breakdown
| Option | Service fee | State fee | Total |
|---|---|---|---|
| DIY (file directly with state) | $0 | $200 | $200 |
| Bizee (Incfile) — basic plan | $0 | $200 | $200 |
| ZenBusiness — starter plan | $0 | $200 | $200 |
| LegalZoom — basic plan | $0 | $200 | $200 |
| Northwest Registered Agent | $39 | $200 | $239 |
The bottom line: Several formation services now offer $0 service fees — you only pay the $200 Alabama state filing fee. You get the help without the extra cost. LegalZoom, ZenBusiness, and Bizee all have free basic formation tiers.
DIY vs. formation service — is it worth it?
Filing yourself through the Alabama Secretary of State is straightforward if you're comfortable with government websites and forms. The main risks are small errors in your filing that could cause delays or rejections. For most first-time business owners, using a free formation service eliminates that risk with no additional cost.
What's not included in the formation fee
Beyond the base formation cost, budget for:
- Registered agent: $0 (if you serve as your own) to $125/year (service)
- Operating agreement: $0 (DIY) to $99 (online service)
- Business privilege tax: $100/year minimum
- Business license: $10–$100+ depending on county and business type