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Free Alabama LLC Operating Agreement Template

Protect your business and define how it operates with an Alabama LLC operating agreement. Build your custom agreement in minutes using our guided online form.

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1,109 Ratings
  • Duration 2 min
  • Download as PDF and Word
  • E-sign included

Written by Josh Sainsbury | Attorney-Reviewed by Harvey Barbee, J.D.

How It works?

1

Fill in Your Details

Enter your LLC name, members, and business information.

2

Customize Your Agreement

Enter the buyer’s and seller’s information, along with details about the item being sold.

3

Sign and Store

Download your completed document as a PDF or Word file, then e-sign and save it for your records.

Table of Contents

  1. What Is an Alabama LLC Operating Agreement?
  2. Laws, Costs, and Fees in Alabama
  3. How to Create an Alabama LLC Operating Agreement

What Is an Alabama LLC Operating Agreement?

An Alabama LLC operating agreement outlines how your company is structured, owned, and managed. It defines each member’s responsibilities, how profits and losses are distributed, and how decisions are made.

While Alabama doesn’t legally require an operating agreement to form an LLC, having one strengthens your legal protection and clarifies internal operations. It separates your personal assets from your business activities and can help avoid disputes between members.

You can form several types of LLCs in Alabama:

  • Single-member LLCs: Owned by one person.
  • Multi-member LLCs: Shared among two or more owners.
  • Series LLCs: Parent LLCs with individual divisions that operate independently.

Even single-member LLCs benefit from an operating agreement—it helps prove your company operates separately from your personal finances, supporting your limited liability status.

Laws, Costs, and Fees in Alabama

Alabama’s LLC regulations are outlined under Title 10A, Chapter 5A of the Code of Alabama, including:

LLC Formation Costs in Alabama:

  • Certificate of formation filing fee: $200 ($208 if filed online). Foreign LLCs: $150.
  • Name reservation fee: $25 ($28 if filed online).

Alabama also requires an annual Business Privilege Tax Return and Report, with a minimum payment of $100 per year.

How to Create an Alabama LLC Operating Agreement

Follow these steps to form your LLC and create your operating agreement in Alabama:

  1. Reserve your business name: Choose a unique name that meets Alabama’s naming rules. Check availability through the Secretary of State’s Business Entity Records. File your reservation using the Certificate of Name Reservation (10A-1-4.02(f)) or complete the process online for instant approval.
  2. Appoint a registered agent: This person or company receives official documents on behalf of your business. Your agent must have a physical Alabama address and be available during regular business hours. You can review the Secretary of State’s Registered Agent List for reference.
  3. File your Certificate of Formation: You can file online via Secretary of State Online Services or by mail at PO Box 5616, Montgomery, AL 36103. If filing by mail, include:
    • Two copies of your Certificate of Formation (download here)
    • Your name reservation certificate
    • $200 payment
    • A self-addressed return envelope
  4. Create your operating agreement: Even though Alabama doesn’t require one, having a written agreement is strongly recommended. You can create a professional version using our Alabama LLC operating agreement template, customized to your business needs.
  5. Obtain an Employer Identification Number (EIN): Apply for an EIN through the IRS EIN application portal. If you prefer mail, use Form SS-4 and send it to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999.