State Guide

Alabama LLC for Non‑Residents

High filing fee but no personal income tax on LLC profits — suitable if you have real business activity in Alabama.

$200 State filing fee (LLC)
$100+/yr Privilege Tax
No State Income Tax (personal) on LLC profits

Why Alabama?

High filing fee but no personal income tax on LLC profits — suitable if you have real business activity in Alabama. Non-residents can form a Alabama LLC without any US address, SSN, or physical presence. Edeal handles the registered agent requirement and the entire filing process.

Most non-residents registering a US LLC choose Wyoming ($100 filing fee, $60/year) or Delaware (investor-friendly). Alabama makes the most sense when Alabama has nexus or real business operations.

State Fees

These are government fees paid to the State of Alabama — not Edeal's service fee. Edeal registers your LLC for $1 + state fees.

LLC Formation

  • Filing fee: $200 — one-time, paid to the Alabama Secretary of State
  • Annual fee: $100+/yr — privilege tax, paid to the State of Alabama to keep your LLC in good standing
  • Registered Agent: required by law — Edeal provides a registered agent as part of its service

All fees are set by the State of Alabama and publicly available from the Alabama Secretary of State's office.

Who Alabama Is Right For

  • Manufacturing and aerospace operations with an Alabama footprint — the state hosts the NASA Marshall Space Flight Center in Huntsville and major automotive plants such as Mercedes-Benz, so suppliers and contractors tied to that ecosystem belong here
  • Agribusiness and Southeast-focused trade — companies serving Alabama's farming sector or distributing across the Southeast gain real local nexus from registering in the state
  • Non-residents with genuine Alabama operations — when you have employees, an office, or a warehouse here, the $200 filing fee buys a home state that matches where the work actually happens

Who Alabama Is Not the Best Fit For

  • Freelancers and remote businesses without Alabama tiesWyoming or Delaware are usually more cost-effective
  • Non-residents seeking maximum privacyWyoming and New Mexico offer stronger member privacy protections
  • Businesses optimizing purely for costWyoming at $100 + $60/year is typically the baseline for non-residents

If you are unsure which state fits your situation, you can start with our guide on how to choose a state before you register.

For Non-Residents: What to Consider in Alabama

Your citizenship or country of residence does not prevent you from owning the LLC — a non-resident can be the sole member and run an Alabama LLC entirely from abroad. Still, a few things matter more than the filing fee.

  • Nexus and foreign registration. If your actual operations are in another state, you will likely have to register as a foreign LLC there — double fees. Register where you actually operate.
  • A registered agent is mandatory. You need an agent with a physical address in Alabama — Edeal provides one as part of its service.
  • Bank account and EIN. A US bank account generally requires an EIN; an in-person visit is usually not required, but banks look at the company's connection to the state.
  • Ongoing reporting. Alabama charges a Privilege Tax to keep the LLC in good standing each year. Missing it leads to penalties and eventually administrative dissolution.

FAQ

Do I need to visit Alabama or have a US address to register an LLC?

No. Non-residents from any country can register a Alabama LLC without visiting the state, without a US address, and without an SSN. The only requirement is a registered agent with a Alabama address — Edeal provides this.

Do I need to be a US resident to form an Alabama LLC?

No. A non-resident can be the sole owner and manage it remotely — no SSN or US residency is required.

Should a non-resident with no US business choose Alabama?

Usually no. For a purely remote business, Wyoming is cheaper and simpler to maintain.

What happens if I operate in another state under this Alabama LLC?

Nexus arises in that state, and the LLC will likely need to register as a foreign LLC there — extra fees and reporting. Choose your state of registration based on where you actually operate.

What is the annual fee for a Alabama LLC?

The annual government fee for a Alabama LLC is $100+/yr (Privilege Tax). This fee is paid to the State of Alabama to keep your LLC in good standing — it is a mandatory government fee, not an income tax rate.

Can I open a US bank account with a Alabama LLC?

Yes. A Alabama LLC formed through Edeal comes with the documentation typically required by US banks and fintechs (Mercury, Relay, Brex). Having an EIN is usually also required — Edeal can assist with that process.