Alabama vs Florida LLC Cost (2026): $210 vs $264
Side-by-side LLC formation cost comparison for Alabama and Florida: filing fees, annual report costs, processing time, and tax implications.
Forming an LLC in Alabama costs $210 in year one — $54 cheaper than Florida ($264).
Alabama
Lower CostFlorida
Full LLC Cost Comparison: Alabama vs Florida
| Factor | Alabama | Florida |
|---|---|---|
| State filing fee (one-time) | $200 | $125 |
| Annual report fee | $10 / per year | $139 / per year |
| Processing time | 3–7 business days | 3–5 business days |
| State income tax | Yes | No income tax |
| First-year total | $210 | $264 |
Alabama saves you $54 in year one compared to Florida.
Alabama LLC Notes
Alabama requires a Certificate of Formation filed with the Secretary of State.
Florida LLC Notes
Florida has no personal income tax, making it popular for small business owners.
Which State Should You Actually Use?
For most small businesses, form your LLC where you actually do business — not where the filing fee is cheapest. If you operate in Alabama, form there. If you operate in Florida, form there.
- Forming in your home state: Simpler compliance, no registered agent needed in another state, no foreign qualification fees.
- Forming in Wyoming or Delaware: Makes sense for investor-backed startups, multi-member LLCs with complex ownership structures, or businesses operating in multiple states.
- Key cost trap: If you form in Florida but operate in Alabama, you'll pay both states' fees — eliminating any savings.
Compare More LLC Formation Costs
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