Can a non-resident form an Alabama LLC?

Yes. A non-US resident can generally form and own an Alabama LLC without becoming an Alabama resident.

Do I need to live in Alabama to form an LLC?

No. You do not generally need to personally live in Alabama. However, your LLC must maintain a registered agent that meets Alabama's requirements.

Do I need to reserve my Alabama LLC name?

Yes. Alabama requires a Certificate of Name Reservation before domestic LLC formation.

How much does it cost to form an Alabama LLC?

The current Secretary of State filing fee for a domestic Alabama LLC is $200, in addition to the required name reservation and any optional services.

Does an Alabama LLC have an annual report?

An ordinary Alabama LLC does not currently file a separate Secretary of State annual report. Since 2024, Alabama's Secretary of State annual-report requirement applies only to specific corporation types.

What is the Alabama Business Privilege Tax?

It is a state tax imposed for the privilege of being organized under Alabama law or doing business in Alabama. The tax is based on Alabama taxable net worth, with rates currently ranging from $0.25 to $1.75 per $1,000 depending on the business's Alabama taxable income.

Does every Alabama LLC pay a $100 Business Privilege Tax?

No. For tax years beginning after December 31, 2023, taxpayers whose calculated Business Privilege Tax is $100 or less are fully exempt and are not required to file the Business Privilege Tax return.

Does Alabama have state income tax?

Yes. Alabama imposes an individual income tax, and non-residents can have filing obligations when they receive Alabama-source income.

Does Alabama have sales tax?

Yes. The general state sales tax rate is currently 4%, with additional local sales and use taxes potentially applying.

What is Alabama's economic nexus threshold?

Remote sellers directly making more than $250,000 in total retail sales delivered into Alabama during the previous calendar year can be required to collect and remit Alabama tax under the state's economic nexus rules.

What is Alabama SSUT?

The Simplified Sellers Use Tax Program allows eligible participating remote sellers to collect and remit a flat 8% sellers use tax on qualifying Alabama sales instead of dealing with the traditional state and local tax system separately.

Can I use an Alabama LLC for Amazon?

Yes. An Alabama LLC can generally be used as the legal business entity behind an Amazon business, subject to Amazon's current verification and seller-account requirements.

Does a foreign-owned Alabama LLC need Form 5472?

A foreign-owned single-member US LLC treated as a disregarded entity can have Form 5472 and pro forma Form 1120 reporting requirements when the applicable federal conditions are met. Failure to properly file Form 5472 when required can result in a $25,000 penalty.

Is Alabama better than Florida for a non-resident LLC?

It depends on your business. Florida has no individual state income tax, while Alabama can tax Alabama-source income earned by non-residents. Alabama does not currently require ordinary LLCs to file a separate Secretary of State annual report, while Florida LLCs have an annual report and associated fee. If you genuinely operate in Alabama, forming there can make sense. If you simply need a US LLC for a completely online business with no Alabama connection, it is worth comparing Alabama with other states before deciding.