Alabama Foreign Qualification

A company formed in another state that wants to transact business in Alabama must register with the Alabama Secretary of State before doing so. This process is called foreign qualification, and the word "foreign" here means formed outside Alabama, not formed outside the United States. An LLC formed in Delaware, a corporation formed in Georgia, or a company formed anywhere outside Alabama all follow this route when they begin operating in Alabama. This page covers what Alabama charges, what the registration requires, and what happens after registration.

What it costs to register in Alabama

The Alabama Secretary of State charges $150 to register a foreign corporation or a foreign LLC. That figure comes from the Secretary of State's published fee schedule, which lists the foreign corporation application for registration and the foreign LLC application for registration at $150 each. 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.

Two further figures from the fee schedule are worth knowing before registering. A foreign corporation that files late faces a late filing penalty of $150 per year. If the company later withdraws from Alabama, the certificate of withdrawal costs $100, and an amendment to a foreign registration costs $100. Card payments 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.

What the registration requires

The application requires the company's legal name as recorded in its home jurisdiction, plus the Alabama name if it differs. It requires the street address of the principal office, with no post office boxes, plus a mailing address if different. It requires the jurisdiction of formation and the date the entity was originally formed, and the date the company began or will begin transacting business in Alabama.

Every foreign entity must designate 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. The agent receives service of process and state communications on the company's behalf in Alabama, which is why a company with no Alabama presence of its own still needs an Alabama address on record. Every Sams Business formation package includes registered agent service free for the first year, and virtual mail free for the first month.

Two attachments are required with the registration. A copy of the name reservation certificate from the Secretary of State must be attached, at a cost of $25 for the reservation, and the Secretary of State's business downloads pages confirm this attachment rule for both the foreign corporation and the foreign LLC applications. If the company later withdraws from Alabama, a Certificate of Compliance from the Alabama Department of Revenue must be attached to the certificate of withdrawal.

After registration: ongoing Alabama duties

Registering in Alabama does not end the company's obligations there. A foreign for-profit corporation files an annual report with the Secretary of State's Business Services Division, at $10 per report, because the annual report applies to domestic and foreign for-profit corporations and professional corporations. A foreign LLC does not file an annual report with the Secretary of State, because reports from entity types outside that group are not accepted.

The business privilege tax, administered by the Alabama Department of Revenue, is a separate track. 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. Beginning January 1, 2024, the corporation annual report is no longer filed with the business privilege tax return, so the two filings should not be confused.

Two other state charges are useful for planning. A Certificate of Existence, which confirms an entity's standing, costs $25. If the registered agent or registered office changes, that change costs $100 by the entity or $100 by the agent. Dissolution assistance, and withdrawal assistance for a foreign company leaving Alabama, are separate services with a custom quote, and they are never part of a formation package. Standard includes compliance alerts, which help keep the annual report and other recurring filings from slipping.

Sams Business pricing with foreign qualification

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, an operating agreement or bylaws, S-corp election filing where applicable, 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.

Start from the contact page to qualify a foreign company in Alabama.

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.