Both charge $0 for formation — the difference is what happens in year two. Bizee charges $119/year for registered agent service after the free first year. LegalZoom charges $299/year and doesn't include it in any plan. Over three years that gap is roughly $490. For most North Alabama business owners who only need formation and a registered agent, Bizee wins on cost. LegalZoom makes sense only if you will actively use its attorney access and legal document platform.
Two Alabama facts neither service advertises
Every national comparison of LegalZoom and Bizee covers price. None of them cover these two Alabama-specific rules — because they're written for all 50 states and don't track state-level changes.
Alabama eliminated the LLC annual report in October 2024. Under Act 2024-213 (HB 230), effective October 1, 2024, Alabama LLCs no longer file annual reports. Only corporations do. Both LegalZoom and Bizee sell annual compliance packages. In Alabama, there is no LLC annual report to file. Before you buy a compliance package, ask explicitly what it files in Alabama. If the answer is "your annual report" — there isn't one. Source: Alabama Secretary of State, "Cutting Red Tape for Alabama Businesses."
Alabama requires a Certificate of Name Reservation before you can file. Alabama is one of very few states where name reservation is a mandatory prerequisite — not optional — before the Certificate of Formation can be submitted. It costs $28 online and is approved instantly. No neighboring state requires this two-step sequence. Any formation quote that doesn't include roughly $25–$28 for the name reservation is either adding it separately at checkout or filing out of order. Ask each service directly: is the name reservation included, and do you file it first?
What Alabama formation actually costs
Both services advertise $0 formation. Alabama's state still collects its fees regardless:
On the EIN: Both services sell EIN acquisition as an add-on. An EIN is free directly from the IRS, obtainable online in minutes at irs.gov. For a US citizen with an SSN forming a single-member LLC, paying for EIN service is unnecessary. The case for paying is convenience or if you lack an SSN — otherwise, skip it.
On the business privilege tax: Alabama eliminated the $100 BPT minimum for tax years beginning after December 31, 2023 (Act 2022-252). Most small LLCs now owe $0 and are not required to file a return. Several 2026 guides still describe a "$50 minimum BPT" — that reflects the pre-2024 rule. Verify with ALDOR before paying anything.
Formation pricing comparison
| Item | Bizee | LegalZoom |
|---|---|---|
| Entry plan | $0 + state fees | $0 + state fees |
| Mid tier | Gold — $149 or $199 (sources conflict) | Pro |
| Top tier | Platinum — up to $299 | Premium |
| Registered agent, year one | Free — included | Not included in any plan |
| Entry-tier processing | Next-business-day submission, ~3 weeks state processing | 30+ business days — slowest among major services |
| Checkout experience | ~10 upsell screens, nothing pre-selected | Fewer screens — but see auto-renew note |
| Name reservation (Alabama) | Ask each service: is it included and filed first? | |
The registered agent line — where the money actually is
Both services advertise $0 formation. The real cost difference is the registered agent renewal — and every LLC must maintain one for the life of the business.
| Service | Year 1 | Annual renewal | 3-year total (standalone) |
|---|---|---|---|
| Bizee | Free with formation | $119/year* | ~$238 (years 2–3) |
| LegalZoom | $249 — not included in any plan | $299/year | ~$847 |
| Northwest | $125 | $125/year flat† | ~$375 |
| ZenBusiness | Varies | $199/year | ~$597 |
*One source reports $149/year after placing a real order. Verify current pricing directly. †Northwest is reported to have never raised prices for existing customers.
The gap over 3 years is roughly $490. Over 5 years, one analysis puts it at $769. Both companies advertise $0 formation. The difference is not the formation — it is what happens in year two. Every LLC must maintain a registered agent, so this is not an optional line item. Budget for one of these renewal numbers from day one.
One detail worth knowing: Bizee's registered agent service is provided by a third party — Republic Registered Agent LLC, based in Lexington, Kentucky. Your legal mail runs through them. This is standard in the industry, but it means Bizee is not directly handling your agent service.
The LegalZoom auto-renew trap
LegalZoom's attorney plan auto-renews at $49/month — $588/year — if not cancelled within 30 days of purchase on Pro and Premium plans. One analysis notes: one month alone exceeds half of Bizee's entire annual registered agent cost. Bizee has no equivalent auto-renewing subscription. If you buy LegalZoom Pro or Premium, set a calendar reminder for day 25.
Where LegalZoom genuinely wins
| LegalZoom strength | Detail |
|---|---|
| Attorney access | Attorney consultations, document review, and a broader legal services platform — if you will use it |
| Trademark filing | $649+. Relevant for brand protection — see the Alabama trademark search guide for the state-level alternative |
| Brand recognition | Matters to some buyers, lenders, and partners |
| When it makes sense | If you will actively use the legal platform. If you only need formation plus an agent, you are paying for capacity you will not use. |
The third option: do it yourself
The honest total for a North Alabama LLC done directly through the Secretary of State:
- Certificate of Name Reservation — $28 online, approved instantly
- Certificate of Formation — $208 online including the $8 portal surcharge
- EIN from the IRS — $0
- Serve as your own registered agent if you have a physical Alabama address — $0 (your address becomes public record)
- County business privilege license — required before you operate, fees vary by county
Total state cost: ~$236. Online filings through the Alabama SOS portal are typically approved in one to three business days. The main reason to pay a formation service is registered agent privacy — keeping your home address off the public record. That is a legitimate reason. It is not a legal requirement. A page that says this plainly is more useful than one that doesn't.
What neither service does for you in Alabama
Forming the LLC is the part these services handle. It is not the part that trips up North Alabama business owners.
| Requirement | Who handles it |
|---|---|
| County business privilege license | You — required in every county where you conduct business, before you open. October 31 renewal deadline. See: Alabama business license by county |
| Municipal business license | You — separate from the county license. City limits and police jurisdiction both trigger it. |
| DBA / trade name registration | You — Alabama SOS Trademarks Division, $30, requires three use specimens. See: DBA Alabama |
| My Alabama Taxes registration | You — sales tax and withholding accounts if applicable |
| Zoning confirmation | You — a business license does not imply proper zoning |
| EIN | Either — but it is free from the IRS and takes minutes |
The county license is the gap that causes real problems in North Alabama. Neither LegalZoom nor Bizee files your Alabama county business privilege license. A new business must obtain it before operating — no grace period, delinquent immediately. And the multi-county rule catches contractors and mobile businesses: a license is required in every county where business is conducted, not just where the LLC is registered. A Madison County contractor taking jobs in Limestone, Morgan, and Jackson counties needs a license in each. See the county guides: Madison County, Limestone County, Morgan County.
The North Alabama angle
The Huntsville metro is one of the faster-growing in the Southeast, with heavy in-migration and a steady stream of new consultancies, contractors, and defense-adjacent businesses. Several factors make formation service decisions different here:
- Multi-county work is the norm. Madison, Limestone, Morgan, and Jackson counties are all within normal working distance. A trades or services business crossing county lines needs a license in each county where it works — and neither formation service mentions this.
- The contractor economy. Many North Alabama LLCs are formed to hold defense or engineering consulting work. Those clients require an entity, an EIN, and a W-9 before the first invoice. Speed matters — LegalZoom Basic at 30+ business days may not serve this.
- Registered agent address. Alabama requires a physical Alabama address for the registered agent. A home-based business either publishes its home address or pays for an agent. That is the real reason most people buy the service — and it is a legitimate one.
Which one, and for whom
| If you… | Then |
|---|---|
| Want lowest total cost, only need formation + agent | Bizee — the RA renewal gap is decisive |
| Will actively use attorney access and legal documents | LegalZoom — but only if you will actually use it |
| Want the most predictable long-run RA cost | Northwest at flat $125/year with no reported increases |
| Comfortable with state websites, want lowest cost | DIY — $236 in state fees, done in days |
| Need it fast | Neither entry tier is fast — Bizee is faster than LegalZoom Basic |
| Have partners, investors, or a non-standard structure | An Alabama business attorney, not a formation service |
Common mistakes
| Mistake | What actually happens |
|---|---|
| Comparing on formation price | Both are $0. The registered agent renewal is the real number. |
| Not budgeting the year-two RA fee | $119 vs $299 — it recurs for the life of the LLC |
| Buying an Alabama "annual report" compliance package | There is no LLC annual report in Alabama. Eliminated October 2024. |
| Paying for a $50 BPT minimum | Eliminated for tax years after December 31, 2023 |
| Paying for an EIN | Free from the IRS at irs.gov |
| Not confirming name reservation is included | Alabama requires it first — a quote without ~$28 for it is incomplete |
| Missing the LegalZoom attorney-plan auto-renew | $49/month after 30 days on Pro and Premium |
| Assuming formation means you can operate | You still need the county business privilege license — before you start |
| Licensing only where the LLC is registered | Required in every county where business is conducted |