Alabama
Alabama positions itself at the forefront of the industry by offering innovative features like a 60-day provisional license and the ability to form as any entity allowed under law, including Series LLCs. Legislation enacted in 2006 was significantly updated in 2016 to modernize the Alabama Captive Act and enhance competitiveness. The state is active in advocacy through the Alabama Captive Insurance Association and offers prorated premium taxes in the first year.
Quick Facts
Minimum Capital & Surplus
| Structure Type | Minimum Capital |
|---|---|
| Pure / Protected Cell | $250,000 |
| RRG / Industrial Insured | $500,000 |
| Reciprocals | $1,000,000 |
Regulatory Framework
Alabama Captive Act (HB 270 update in 2016)
Tax Environment
$100,000 maximum cap; no tax on dormant captives
Considering Alabama for Your Captive?
Our consultants provide end-to-end guidance on domicile selection, feasibility, and formation. Let us help you determine if Alabama is the right fit.