Oregon LLC vs Alabama LLC (2026)
Written for owners based in Oregon.
Verdict: for most owners, form where the business is based
Alabama and Oregon both come to $200 in year one, but the money sits in different places. Alabama takes all $200 at filing and then asks for nothing, because since 2024 its Secretary of State does not accept annual reports from LLCs at all. Oregon takes $100 to file and $100 again on every anniversary, so year two onward is $100 against $0. Alabama also makes a name reservation a prerequisite to filing, not an option. Bringing an Alabama LLC back into Oregon costs $275, more than two years of Oregon renewals.
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Compare Oregon LLC vs Alabama LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: October 1, 2026
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| Factor | Oregon | Alabama |
|---|---|---|
| Filing Fee | $100 | $200 |
| Processing Time | Not published by the state | Not published by the state |
| Annual Report Fee | $100 | None |
| Annual Report Due | Anniversary date | None required |
| State Income Tax | Yes | Yes |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $275 + registered agent ~$150/yr |
Full fee breakdown for either state: Oregon LLC cost and Alabama LLC cost. Owner privacy options for either state: Oregon anonymous LLC guide and Alabama anonymous LLC guide.
Business Climate: Oregon vs Alabama
| Factor | Oregon | Alabama |
|---|---|---|
| 5-year business survival rate | 45.8% (#47 of 51) | 51.4% (#24 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +2.1% YoY (#31 of 51 by volume) | +16.6% YoY (#27 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Oregon vs Alabama
Oregon
Alabama
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Oregon charges $100 to form an LLC, while Alabama charges $200. Oregon is $100 cheaper upfront. The cost that usually gets overlooked: if you form in Alabama but operate in Oregon, you must also register as a foreign LLC in Oregon (a $275 filing) and maintain a registered agent in Alabama (typically around $150 per year). That puts the realistic first-year cost of the Alabama route at roughly $625, versus $100 for simply forming in Oregon. Speed isn't a basis for choosing between them: neither Oregon nor Alabama publishes a standard processing time, so any figure comparing the two is guesswork.
Taxes: Oregon vs Alabama
Both Oregon and Alabama levy a personal income tax on pass-through business income, and your LLC's profits will be taxed where you live and operate. Forming in Alabama doesn't change what an Oregon-based owner pays. Neither state imposes a separate franchise or privilege tax on LLCs beyond standard filing fees.
Privacy & Asset Protection
Neither Oregon nor Alabama offers anonymous LLC formation: both states require owner or manager information on public filings. Alabama requires member/manager information on public filings. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Oregon LLCs file an annual report ($100, due in the anniversary month), and Alabama LLCs file no annual report at all. If you form in Alabama while operating in Oregon, you maintain filings in both states, Alabama asks for no report, but Oregon still wants its equivalent for your foreign registration, and pay an Alabama registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the Alabama route to roughly $250 a year, versus about $100 to keep a domestic Oregon LLC in good standing.
When Alabama Actually Makes Sense
Forming in Alabama makes sense in a few specific situations: your business genuinely operates in Alabama, with a real office, employees, or property there, or you're relocating to Alabama in the near future. For a typical small business based in Oregon, none of these usually apply. Registering an Alabama LLC to do business back home means $275 in Oregon foreign-registration fees, on top of Alabama's $200 formation fee, while Oregon's own annual report runs $100 a year and is due in the anniversary month. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so.
- sos.oregon.gov/business/pages/default.aspxOregon Secretary of State: business entity filings
- sos.oregon.gov/business/Documents/business-registry-forms/br-fee-schedule.pdfOregon LLC filing fees
- sos.alabama.gov/business-entities/llcsAlabama Secretary of State: business entity filings
- sos.alabama.gov/sites/default/files/form-files/FeeSchedule.pdfAlabama LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.