Starting a nonprofit in Alabama

Incorporation

Filing

Domestic Nonprofit Corporation Certificate of Formation (SOSDF-5)

Agency

Alabama Secretary of State

State fee

$200 — never marked up by us

Processing

Online filings process in a few business days; mail takes several weeks

Expedite

Not offered

Watch out

• Alabama requires a name reservation BEFORE you can file the certificate of formation (about $25–$28, done online) — skipping it is the most common first-time stumble.
• The state's standard certificate of formation does NOT include the IRS-required 501(c)(3) purpose and dissolution clauses — they must be added as an attachment or the IRS will bounce your exemption application.
• Since 2021 filings go directly to the Secretary of State — no more county probate judge filing.

Ongoing compliance

Registered agent

Must have an Alabama street address; an officer or director may serve, but the corporation cannot be its own agent.

Charitable registration

Required — Alabama Attorney General, Consumer Interest Division. Initial: $25. Renewal: Annual — renew each year (registration year ends September 30) and file a financial report or Form 990 within 90 days of fiscal year end. Registration kicks in once contributions exceed $25,000 in a fiscal year (or immediately if you use paid fundraisers). Religious and educational institutions are exempt.

Annual report

No Secretary of State annual report for nonprofit corporations

State tax exemption

Income tax exemption generally follows the IRS determination. Sales tax is the trap: Alabama exempts only organizations specifically named in statute — most 501(c)(3)s pay sales tax on purchases unless they qualify for a Department of Revenue certificate of exemption.