Alabama Nonprofit Formation

A nonprofit corporation is a corporation formed for a purpose other than distributing profits to owners. Charities, community groups, educational initiatives, and member associations commonly use this form. The corporation still needs a registered agent, a formation filing, and ongoing attention to state filings, but its purpose and governance differ from a for-profit corporation, and its tax-exempt status is a separate question from its existence as a corporation. This page covers what Alabama charges, what Alabama requires, and what Sams Business handles when forming an Alabama nonprofit corporation.

What it costs to form an Alabama nonprofit

The Alabama Secretary of State charges $200 to file a domestic nonprofit Certificate of Formation. That figure comes from the Secretary of State's published fee schedule, which lists the same $200 figure for domestic for-profit, nonprofit, and LLC formations. The state filing fee is paid by you at cost, with zero markup, and you see the full total before you pay anything. Sams Business package fees sit on top of the state fee: Basic at $0, Standard at $199, and Premium at $299.

As with every Alabama formation, the name must be reserved before the formation filing is accepted. A name reservation costs $25, and a copy of the name reservation certificate must be attached to the Certificate of Formation. The Secretary of State's Business Services pages confirm that name reservations are handled through Alabama Interactive, and the formation itself can be completed through the Secretary of State's online services or by mail. The Secretary of State's business downloads pages confirm that the name reservation certificate attachment rule applies to the domestic nonprofit certificate as well.

Two details of the state fee are worth knowing. The Secretary of State pays $100 of the $200 filing fee to the treasurer of the county where the registered agent's office is located, which is why the formation form asks for the county of the registered office address. Card payments also carry additional charges: the fee schedule notes that credit cards have additional vendor fees, and the paper filing payment slip states a convenience fee of 3% plus $2.00 for card payments. If you file by mail, the form instructions ask for two copies of the completed form along with a self-addressed, stamped envelope, sent to the Secretary of State, Business Services, in Montgomery. A dishonored check carries a $30 fee.

What Alabama requires

The nonprofit name must comply with Alabama's naming rules and be distinguishable from other business names already on file, ignoring the entity ending. If the intended name uses a restricted word such as engineer, insurance, bank, or trust, the formation forms note that approval from the relevant governing agency is needed.

Every Alabama nonprofit corporation must name a registered agent with a registered office in Alabama. The agent's address must be a street address, with no post office boxes, and the county of that address must be stated. A separate mailing address in Alabama may be listed if it differs from the street address. The certificate also asks for the street address of the corporation's principal office, the purpose for which the corporation is formed, and the name and address of the incorporator. The corporation's internal rules are set out in its bylaws, which the Standard package includes. Every Sams Business formation package includes registered agent service free for the first year, and virtual mail free for the first month.

The filing is effective immediately on the date it is received by the Secretary of State, Business Services Division, or on a delayed effective date specified in the filing, within the limits the form sets.

Tax-exempt status is a separate step

Forming the nonprofit corporation creates the corporation under Alabama law. It does not by itself make the corporation tax-exempt. Tax-exempt status is a separate application decided by the Internal Revenue Service, and it follows formation rather than replacing it. Founders sometimes assume the state filing settles the tax question; it does not, and the two tracks should be planned separately so the corporation exists first and the tax application follows with the corporation's details in place.

After formation: no annual report for Alabama nonprofits

An Alabama nonprofit corporation does not file an annual report with the Secretary of State. The annual report handled by the Secretary of State's Business Services Division applies to domestic and foreign for-profit corporations and professional corporations only; reports from other entity types are not accepted. Beginning January 1, 2024, that corporation annual report is no longer filed with the business privilege tax return.

A separate Alabama obligation to understand is the business privilege tax, administered by the Alabama Department of Revenue. For taxable years beginning after December 31, 2023, there is a full exemption from the business privilege tax where the tax due is $100 or less, and taxpayers in that position are not required to file a business privilege tax return. Standard includes compliance alerts, which help keep recurring filings from slipping.

Two other state charges are useful for planning. A Certificate of Existence, which confirms an entity's standing, costs $25. If the corporation changes later, an amendment costs $100 and articles of dissolution cost $100 under the published fee schedule. Dissolution assistance is a separate service with a custom quote, and it is never part of a formation package.

Sams Business pricing for an Alabama nonprofit

Basic ($0 plus the state fee) covers the filing and state registration, with registered agent service free for the first year and virtual mail free for the first month. Standard ($199 plus the state fee) adds EIN assistance, bylaws, and compliance alerts. Premium ($299 plus the state fee) adds expedited filing where the state offers it, ready-to-use business contracts, a domain name and business email, and a US business phone number free for the first year.

Changing the corporation later is also straightforward: amendments cost $100 under the fee schedule. Start from the contact page to begin an Alabama nonprofit filing.

Related Alabama pages

Sams Business is an independent private service and is not affiliated with any government agency, including the Alabama Secretary of State's office.

Not legal or tax advice.