5 Best Alabama LLC Formation Services 2023 List (Updated)


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Best LLC Formation Service in Alabama

When you decide to start an LLC in Alabama, you must thoroughly research and do your homework. Starting an LLC is relatively easy; with professional help, opening an LLC in Alabama becomes even smoother. You will find many such companies when choosing the best LLC formation service in Alabama. Surprisingly, every other company will claim to be the best. But who to trust? How do you know who is the best for your business?

LLCBuddy Editors have eased the task for you. We scanned the market and came up with a list of the best LLC formation services in Alabama. You can compare their services, prices, and other information here before choosing the right one! 

If you do not like reading a long article, you can watch the above video for the complete list of best LLC Alabama LLC formation services. It is mandatory to choose the best LLC formation service in Alabama, especially when you want to get rid of any hassle while forming your Alabama LLC. You may start it on your own, but it will not be a wise decision, as missing out any step or even a small thing can lead to the cancellation of the process.

Best LLC Formation Services in Alabama

Here is the list of best LLC services available in Alabama. The best thing about these services is starting your LLC for free. Some of the following services are offering LLC formation in Alabama at $0. Other than the state fees and charges, you do not have to pay any charges to the service provider. You will get the basic formation package for free. Now, let’s check out the list of best LLC formation service providers in Alabama-

LLC Service

Our Rating & Pricing

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#1 TOP PICK

$0 + State Fees

  • Free LLC formation

  • Access to Legal Support

  • Trustworthy and established reputation

$299 + State Fees

  • Flat pricing for all services

  • Basic business filing services

  • A+ BBB Accredited

Below is the list of best LLC formation services in Alabama we picked for you.

  1. LegalZoom
  2. BetterLegal
  3. TailorBrands
  4. ZenBusiness
  5. NorthWest Registered Agent

LLCBuddy Editorial Team selects these companies through thorough research and market study. It is recommended that you must cross-check all the factors before choosing the right one for your business.

1. LegalZoom

incfile-logo

LegalZoom is one of the service providers in Alabama that offers free LLC formation services. If you want to avoid spending money to form your LLC, then LegalZoom is for you. It offers various formation packages that include all types of LLC services. Aside from LLC formation, LegalZoom offers C and S corp formation. With over thousands of customers, the company offers basic LLC formation services at $0. 

LegalZoom Plans

  • Basic Package- $0 + State Filing Fees (Tax deduction may be applicable)
  • Pro Package – $249 + State Filing Fees (Tax deductible may be applicable)
  • Premium Package – $279 + State Filing Fees (Tax deduction may be applicable)

Apart from these packages, LegalZoom offers a bunch of add-on services as well. Add-on services include the following-

  • Registered Agent – $299 per year. Available as an add-on and not included in any packages
  • Trademark registration: Assisting with the US trademark application process
  • Copyright registration: Guidance on registering copyrights for creative works
  • Patent services: Support in obtaining utility, design, and plant patents
  • Estate planning: Offering personalized wills, trusts, and power of attorney documents
  • Legal advice: Access to a network of lawyers for consultations and legal guidance
  • Expedited Filing: With an additional $99, you can speed up your filing process.

LegalZoom Pros and Cons

Why You Must Get LegalZoomWhy You Shouldn’t Get LegalZoom
Free LLC formationExpensive add-ons, such as Registered Agent
Trustworthy and established reputationHigher pricing compared to some competitors
Quick turnaround timeLess number of add-on options
Access to legal professionalsSome additional fees not included in plan prices
Customer support available through phone or chatMixed customer reviews

LegalZoom Overview

LegalZoom is one of the oldest companies in USA. This company is a service provider offering LLC formation at $0. It offers three broad packages, Basic, Pro, and Premium. The Basic package costs $0. Though you must pay the Alabama filing fee while filing the Certificate of Formation with the Alabama Secretary of State. The filing fee depends on which method, mail, online, or any other method you choose. 

LegalZoom offers vast add-ones like others. Hence, the chances of getting diverse services are comparatively high. The best part about the company is there is an access to legal documents and legal consultation. The registered agent service is a bit expensive. If you want to hire Resident Agent from LegalZoom, you must purchase that service separately, it does not come with any formation plans. 

2. BetterLegal

betterlegal

BetterLegal is a comparatively new company than other competitors. But this company has successfully grabbed a large portion of the market in the United States. Serving in 51 states, BetterLegal has been in business since 2016. Unlike other experienced companies, it does not have a list of packages and plans for LLC formation.

BetterLegal Plans

BetterLegal offers one single plan at a flat $299 + state filing fees. It has a list of add-on services as well. BetterLegal is an online service that started off with a very small team. However, even after being in the business for so long, they didn’t increase their team size much. They have transparent pricing, and no hidden charge exists for any services they provide. 

BetterLegal offers a list of add-on services. Following are the additional services they offer- 

  • Registered Agent service – $10/month or $90/year
  • State Annual compliance services – $10/month or $90/year
  • Permit & License Search Service – $125
  • Amendment & document research – Free with the core formation service package

BetterLegal Pros and Cons

Why You Must Get BetterLegalWhy You Shouldn’t Get BetterLegal
No refund; all sales are finalThe basic package does not include registered agent service
Quick Turnaround timeAdditional charge for EIN
A+ BBB AccreditedThe basic package does not include a registered agent service
Single plan for all incorporation

BetterLegal Overview

Even though the company is called BetterLegal, no attorneys or legal services are available. The company offers a single plan for all types of business formation. Hence, if you are planning to form a corporation, you can pay $299 + incorporation fee ($200 for filing by mail in Alabama). It offers comparatively better turnaround time at a reasonable price than other companies. You can file your LLC within 10 minutes with BetterLegal. 

It offers a resource center for new entrepreneurs. They provide guidance to make things easier when it comes to filing your business. Their small team sometimes fails to cater to their customers on time. Reaching out to their customer support team is very difficult. Another disadvantage is it does not have a refund policy. All sales with BetterLegal are final, and at any stage, upon cancelation, no refund is made. However, basic LLC formation and registered agent services are much cheaper in BetterLegal than in other close competitors.

3. TailorBrands

tailore-brands-logo

Do you want to create a brand for your business in Alabama? Here is the LLC formation service provider, TailorBrands, for you. The company was established in 2015 in New York, and since then, it has offered several incredible services to set up your business. TailorBrands has a single LLC formation plan that starts at $49 a year. You can choose different other add-on services at an additional cost. 

TailorBrands Services

TailorBrands offer a single plan for forming an LLC at $49. There are some basic services that TailorBrands offer, including starting an LLC, filing it, Alabama name availability search, priority support, and so on. You can use their add-on services as and when required. Add-ons are-

  • Registered Agent Service – $199/year
  • Employment ID Number (EIN) – $99 (one-time pay)
  • Annual Compliances – $299/year
  • Operating Agreement – $29
  • Expedited Filing – $49
  • Business bank account – Free

TailorBrands Pros and Cons

Why You Must Get TailorBrandsWhy You Shouldn’t Get TailorBrands
Low-cost LLC formationNot BBB Accredited
Free business bank accountsNo business domain packages
Hassle-free LLC formationAdditional charges to obtain EIN
Additional services like logo, website, domain

TailorBrands Overview

TailorBrands does not have vast LLC formation packages. Instead, it has a single package that includes the formation of LLCs. The name availability search is unlimited, and you don’t have to pay any additional fees. The state filing fee of $200 (by mail and $208 online) must be paid apart from the charges you pay for add-ons. 

TailorBrands offers other business services such as logo making, domain, website, business bank account, merchandise, and other business services. As a small or start-up business, you must go for TailorBrands.

4. ZenBusiness

zenbusiness

ZenBusiness is a Texas-based company that provides services from formation to annual compliance to an LLC. It offers three plans, Starter, Pro, and Premium. The Starter plan starts from $0. That means you can form your LLC for free in Alabama, though you must pay the state filing fee of $200 (by mail and $208 online) to the Alabama Secretary of State. But, the company charges nothing to form your business in the state. 

ZenBusiness Plans

  1. Starter Plan at $0 + state filing fee
  2. Pro Plan at $199/year + state filing fee
  3. Premium Plan at $299/year + state filing fee

ZenBusiness Pros and Cons

Why You Must Get ZenBusinessWhy You Should Not Get ZenBusiness
100% accuracy rateDoes not form Alabama nonprofit
Free LLC formation in AlabamaAdditional cost for EIN
User friendly
Standalone Resident Agent services

ZenBusiness Overview

ZenBusiness is one of those top-rated companies that provide business formation in Alabama at a minimum cost (currently at $0). There is no charge to be paid to the company for forming your LLC in Alabama. The state filing fee and other necessary fees must be paid, including the registered agent fee. 

ZenBusiness offers three plans, among which the Pro plan is recommended. The Pro plan has everything you need to start an LLC in Alabama. Obtaining EIN, operating agreement drafting, name search, and all other services are available with the rush filing feature. 

5. Northwest Registered Agent

northwest registered agent

Northwest Registered Agent is a family-owned business based in Spoken, Washington state. The company offers LLC formation, registered agent service, annual compliances, and other business-related services in all 50 states, including Alabama. It offers LLC formation at $ 39+ state fees and registered agent service at $125 yearly. 

Northwest Plans

Northwest does not have conventional packages. It offers Core, Business maintenance, and business development services. Under these categories, various services are available at a flat rate. Some of the services offered by Northwest in Alabama are listed below-

  • LLC formation in Alabama at $39 + state filing fee
  • Registered Agent at $125 yearly
  • Annual report filing at $100 + state filing fee
  • Obtaining EIN at $50
  • Northwest offers National Agent Service. If you operate your LLC Resident Agent in 5 or more states, you can pay $100 + state fees (if applicable) to get a single agent for all states.

Northwest Registered Agent Pros and Cons

Why You Must Get NorthwestWhy You Should Not Get Northwest
DIY Packages for your LLC in AlabamaNot BBB accredited
No plans, flat rate for all servicesAdditional charges to obtain EIN in Alabama
Purchase only the service you need to form Alabama LLC.The operating agreement draft is not included in the Core services
Northwest offers standalone Resident Agent service in Alabama

Northwest Registered Agent Overview

Northwest is one of those service providers that offer DIY packages. Northwest is not for you if you want a wholesome formation package in Alabama. It does not have conventional LLC formation packages. It is simply like a departmental store for you. You don’t need to buy everything, but the only thing you need. 

Northwest has in-house corporate guides to guide you through the formation process. It offers LLC formation at $39 plus the state filing fee ($200 (by mail and $208 online) ). If you have already formed your LLC in Alabama and are willing to appoint Resident Agent only, then Northwest can provide a standalone registered agent service at $125 per year.

Northwest offers single flat rates for all services in Alabama and other states. The best part about the company is it does not outsource any of its services. Northwest offers corporate guides to help you through the steps of LLC formation. 

How to Form an LLC in Alabama

Alabama, popularly known as The Yellowhammer State, is a business-friendly state with a population of 5,097,641. The Nominal Gross Domestic Product (in millions) of Alabama is $280,220 according to a 2022 study, which has been said to be increased over the past year. Hence, starting your business in Alabama will always be a good option. If you choose the state capital, Montgomery, to start your LLC, you might get more tax and other benefits. 

To form an LLC in Alabama, you need to follow some basic steps, including getting an LLC name, appointing your Alabama Resident Agent, filing the Alabama Certificate of Formation, creating Alabama LLC operating agreement, and finally getting an EIN for filing required taxes. 

You can do that on your own. However, it is always recommended to get a professional person on board to guide you through. These steps are crucial and sensitive. You must complete everything to avoid canceling your formation process. Hence, having a professional LLC formation service for your LLC is better. 

How to Choose the Best LLC Formation Service in Alabama

It is important to choose the best service for your business carefully. Before you select the best one, make sure you thoroughly research on following points-

  1. Reputation: Look for a company with a good reputation. Check reviews and ratings from previous clients to see how they feel about the services offered.
  2. Experience: Choose a company with years of LLC formation experience. This ensures that they have knowledge of the process and can provide quality services.
  3. Cost: Compare prices between different companies. Choose a company that offers affordable pricing for the services you need.
  4. Customer Service: Ensure that the company has good customer service. They should be responsive, helpful, and willing to answer any questions.
  5. Services Offered: Look for a company that offers a range of services, including entity formation, registered agent services, and ongoing compliance support to ensure your LLC remains in good standing.
  6. Ease of Use: Choose a company with a user-friendly website and easy-to-use online platform. This makes the process of forming an LLC simple and straightforward.
  7. Guarantees: Check if the company offers a satisfaction guarantee or a refund policy. This gives you peace of mind that you are getting the best possible service.

FAQs

What is an LLC formation service in Alabama?
An LLC formation service in Alabama helps entrepreneurs to form limited liability companies in the state of Alabama.
Can I file for an LLC in Alabama on my own?
Yes, it is possible to file for an LLC in Alabama on your own, but an LLC formation service can make the process much easier and efficient.
Who needs an LLC formation service in Alabama?
People who want to ensure they correctly file the correct paperwork when forming an LLC in Alabama need LLC formation services.
Can an LLC formation service in Alabama help me save money?
Yes, an LLC formation service in Alabama can help you save money as well as time.
How long does it take to get an LLC in Alabama?
The LLC formation process in Alabama typically takes between 3 to 10 business days.
How much does it cost to form an LLC in Alabama?
It costs $150 to register an LLC in Alabama with the Secretary of State, with a $100 expedited option available.
Does LLC formation include obtaining records with the Alabama Secretary of State?
Yes, LLC formation services in Alabama include obtaining records with the Alabama Secretary of State.
Are all LLC formation services in Alabama the same?
No, they are not. LLC formation services can differ in quality of service, customer support, and features offered.
Can I form an LLC in Alabama if I don’t live in Alabama?
Yes, there’s no requirement that LLC members have to be Alabama residents or citizens alone.
Do I have to be a US citizen to register an LLC in Alabama?
No, foreign citizens can register an LLC in Alabama, but they will need a US-based registered agent.
Can an LLC formation service establish a registered agent for my Alabama LLC establishment?
LLC formation services provide Alabama registered agents and serve as one in legal processes that involve the company.
What is a Registered Agent in Alabama?
An Alabama registered agent is an entity designated by an LLC to receive legal documentation and service from the state, such as notifications or state-level taxes.
Can an LLC formation service in Alabama provide a Registered Agent in all states?
Not all LLC formation services in Alabama provide Registered Agents in every state.
How can I contact customer support for an LLC formation service in Alabama?
Usually, phone calls or emails are means to get in touch with customer support of an Alabama-based LLC formation service.
Can an LLC formation service in Alabama file for an EIN?
Yes, LLC formation services in Alabama can file for employer identification numbers (EINs) for LLCs.
What is the cost to obtain an EIN via an Alabama formation service?
Most LLC formation services in Alabama provide access to EIN filings that vary among plans offered.
How long does it take to get an EIN number after registering the LLC in Alabama?
Generally, an EIN application is processed quickly and ultimately issued the same day on working days itself.
How long does it take for an LLC formation service in Alabama to prepare your filing forms?
Preparation times vary among LLC formation services based in Alabama.
Do all LLC formation services in Alabama offer Operating Agreements?
Not all LLC formation services in Alabama offer Operating Agreements unless specified.
What happens if my LLC is rejected by the state in Alabama?
Generally, if an LLC is rejected by Alabama, LLC formation services will help modify formation documents or prove corrections or payment of any fees payable for the rejection.
Can an LLC formation service dissolve an Alabama LLC?
No, it is not authorized, since LLC formation services are contractors responsible only for establishing Alabama LLCs.
Are LLC formation services required to return client documents after performing a service?
Most LLC formation services in Alabama secure client documents permanently once submitted (if client data retention agreement is signed between both parties).
Will my personal data be protected during the LLC formation in Alabama?
Most LLC formation services in Alabama package personal data in systems secured with modern encryption methods.
Do LLC formation services differ between Alabama and other states?
LLC formation services between Alabama and other states differ typically based on specific legality to the said state.
What is a good LLC for an entrepreneur in Alabama?
A considerable LLC typically provides personal asset security for needs of Alabama entrepreneurs.
Can I form multiple Alabama-based LLCs under individual umbrella LLC formations?
Yes, an Alabama LLC’s parent LLC modification allows for subsidiary certification.
Can LLC formation services assist with startup contacts?
Quite a few LLC formation services in Alabama provide exclusive contact to industry companies supporting entrepreneurs.
Does the type of LLC affect my level of liability in Alabama?
Based on the choice of LLC-type provided by an entrepreneur, it will have a specific level applicable at the time of legal suites.
What happens in case an LLC in Alabama is managed by others?
LLC formation services only provide initial setup documents, so hiring employees or creating provisions related to managers has to be decided personally.
Which is the best LLC formation service in Alabama?
It depends on your specific needs and budget. There are several good options available like IncFile, Northwest Registered Agent, etc.
Can foreigners form an LLC in Alabama?
Yes, they can. As long as they have a registered agent and comply with all the state regulations.
What are the Alabama LLC filing fees?
The filing fee for an Alabama LLC is $100.
How long does it take to form an LLC in Alabama?
It usually takes 7 business days to process the paperwork and approve the LLC formation in Alabama.
Is an operating agreement required for an LLC in Alabama?
No, it is not required by law, but it is highly recommended to have one. An operating agreement helps in determining each member’s rights, responsibilities, and duties.
Can I change the name of my Alabama LLC after I’ve formed it?
Yes, you can change your LLC’s name, but you’ll need to file an amendment to your articles of organization with the Alabama Secretary of State.
Can I file an Alabama LLC without a registered agent?
No, it is mandatory to have a registered agent in Alabama for LLC formation as well as for maintaining the LLC’s compliance.
Is there an annual maintenance fee for Alabama LLCs?
Yes, LLCs registered in Alabama need to pay an annual renewal fee of $100 to maintain their LLC status.
How many members are required for an LLC in Alabama?
There is no minimum number of members required to form an LLC in Alabama. You can have ownership and manage it all on your own.
Do I need a business license to operate an LLC in Alabama?
It depends on your business activities, location, and other relevant factors. It is recommended to check with your county and city clerk to make sure.
Can a single-member LLC file taxes as an S Corporation in Alabama?
Yes, a single-member LLC can choose to be taxed as an S Corporation in Alabama.
How much will it cost to get an Employer Identification Number (EIN) in Alabama?
Obtaining an EIN is free of cost from the IRS. You can also apply online while forming your Alabama LLC.
Can I form an Alabama LLC if I’m not a resident of Alabama?
Yes, you don’t have to be a resident of Alabama to form an LLC.
What is the operating agreement?
An operating agreement is a legal document created by LLC owners that outlines the business’s structure, operations, responsibilities of owners, and more.
Do I need an accountant to manage my LLC in Alabama?
No, but having an accountant can be beneficial as they can keep track of financial records, guide tax preparation & filings, and offer tax advice.
How do I dissolve my LLC in Alabama?
The LLC owner must file an Articles of Dissolution form to the Alabama Secretary of State if they want to dissolve their LLC.
Can I have employees in my Alabama LLC?
Yes, an Alabama LLC can have employees.
Can I change the ownership structure of my Alabama LLC?
Yes, you can alter the ownership structure of your LLC with an amendment filing with the Alabama Secretary of State.
Can I use my residential address as my Alabama LLC’s registered agent address?
Yes, you can be your own Alabama LLC registered agent but must have an address in Alabama where a process server can serve important legal documents.
Will I receive any record of formation after I register my LLC in Alabama?
Yes, the Alabama Secretary of State will send a certificate of formation as confirmation of your LLC formation service.
What if the Alabama LLC name I chose is already taken?
While registering your LLC, the Secretary of State of Alabama would search the name’s availability for registration. If it’s taken, you have to choose a different name.
How long does the Alabama annual report take to file?
The deadline to file Alabama LLC annual reports is by April 15th every year.
Can Alabama domestic LLC’s incorporate in other states?
Yes, Alabama’s domestic LLCs can register to carry out business activities in other states as foreign LLCs.
Why to hire an LLC formation agent in Alabama?
LLC formation agents know the Alabama Secretary of States’ entire filing process and can suggest you the best structure, guide about EIN Numbers, handle legal subpoenas, and relieve administrative duties.
Which expenses can an Alabama LLC deduct?
As per Alabama state law, an LLC can treat insurance, travel, attorney expenses or credit card fees among many deductions against, public and accountant have to verify any expense as justifiable against tax returns.
Is Alabama LLC treated as S-Corp, C-Corp or Partnership for taxation purpose by default?
By default, Alabama LLCs are classified as a pass-through tax structure by the IRS unless members elect to be treated as a C-Corp, S-Corp or Partnership as an alternative tax status.
Can an LLC have a corporation as a member?
Yes, Alabama LLC can have multiple members, which can be an S Corporation, C Corporation or a sole proprietorship as well.
Who has the authority to make decisions for an LLC – Members or Managers?
It depends on which structure the Alabama LLC forms adopting. If the LLC has elected a manager, they handle significant authority-related and day-to-day business operations. Whereas for a member-managed LLC, the authority generally executes less complex business-decisions in consultation.with other partners.

Also Read

Conclusion

Having a professional service to form your LLC in Alabama is much better than doing it yourself. It is hassle-free, and there is no chance of making mistakes while filing your business. This article lists the best LLC formation services in Alabama. Before you select one, make sure you compare the price, services, and features properly. 


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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