Mindy,

Every state can have it’s own advantages and disadvantages to registering your business in that state.

Forming an LLC in Florida would cost you less in the state filing fee; however, Florida requires LLC’s registered in the state to file an annual report every May 1st, which the state charges $138.75 to file.

Forming an LLC in Alabama, on the other hand, would cost a little more to initially set up in terms of state filing fee, however the state does not require LLC’s registered in the state to file an annual report; so this over time would save you money and time.

Without knowing the nature of your business, I can’t tell if you would be required to register in a particular state. If you have a nexus in either state, such as an office, employees or if you conduct your business in person, then you are usually going to need to register in that state, respectively.