In Short: Does an Alabama LLC File an Annual Report?
Not with the Secretary of State. An Alabama LLC files its yearly report with the Alabama Department of Revenue instead: the Business Privilege Tax Return. An LLC whose tax works out to $100 or less does not file at all.
- Who files: every LLC doing business in Alabama and every foreign LLC qualified with the Secretary of State, when its tax is more than $100.
- Due date: March 15 for a calendar-year LLC. LLCs taxed as C corporations file by April 15.
- Tax: $0.25 to $1.75 per $1,000 of Alabama net worth, with a $15,000 maximum.
- Late penalty: the greater of 10% of the tax or $50, plus 1% per month on unpaid tax, up to 25%.
- First year: the initial return (Form BPT-IN) is due within two and a half months of formation, unless the tax is $100 or less.
Alabama is a no-annual-report state for LLCs in the narrow sense. The Secretary of State’s $10 annual report fee applies to corporations only. LLCs instead file a Business Privilege Tax Return with the Alabama Department of Revenue, and that return is the Alabama equivalent of an annual report.
For taxable years beginning in 2024 and later, an LLC whose tax would be $100 or less has nothing to file. This guide covers who files, the due dates, how the tax is calculated, the exemption, the first-year return, penalties and how to file through My Alabama Taxes.
Alabama LLC Annual Report at a Glance
| Official name | Business Privilege Tax Return (Form PPT, or Form CPT for LLCs taxed as C corporations) |
|---|---|
| Filed with | Alabama Department of Revenue |
| Who files | Every LLC doing business in Alabama and every qualified foreign LLC whose tax exceeds $100 |
| Filing cycle | Every year |
| Due date | March 15 for a calendar-year LLC; April 15 for LLCs taxed as C corporations |
| Fee | $0.25 to $1.75 per $1,000 of Alabama net worth, $15,000 maximum. No filing when the tax is $100 or less |
| Late fee or penalty | Greater of 10% of the tax or $50, plus 1% per month on late payment, up to 25% |
| Reinstatement | No reinstatement step for the return. Delinquent returns are filed with penalties and interest |
| Where to file | My Alabama Taxes (MAT) or paper by mail |
Does an Alabama LLC Need to File an Annual Report?
Not with the Secretary of State. The Alabama Department of Revenue explains that every corporation, limited liability entity and disregarded entity doing business in Alabama, plus every foreign entity qualified with the Secretary of State, is subject to the business privilege tax. The tax is owed for every year the LLC is registered, even when it is dormant, until it is formally dissolved or withdrawn.
The Secretary of State’s $10 annual report fee, and the Schedule AL-CAR that goes with it, apply to C and S corporations, not to LLCs.
The $100 Exemption for Small LLCs
For taxable years beginning after December 31, 2023, a taxpayer whose business privilege tax would be the minimum amount is exempt from both the tax and the filing requirement under Act 2022-252. The Form PPT instructions put it plainly: if the tax is $100 or less, you do not have a filing requirement and should not submit a return.
Because the tax is based on net worth, the line is easy to check. An LLC with $50,000 of Alabama net worth taxed at the highest rate of $1.75 per $1,000 computes a tax of $87.50 and files nothing.
When Is the Alabama Business Privilege Tax Return Due?
The Department of Revenue sets the due date for limited liability entities at the 15th day of the third month after the start of the tax year, which is March 15 for a calendar-year LLC. An LLC taxed as a C corporation files Form CPT by the 15th day of the fourth month, which is April 15 for a calendar-year filer. A due date on a weekend or state holiday moves to the next business day.
A six-month extension to file is automatic, but the tax is still due by the original date.
The first-year return
A new LLC files Form BPT-IN, the Initial Privilege Tax Return, within two and a half months after it is formed or qualifies in Alabama. There is no extension for this return, and an LLC whose initial tax is $100 or less does not file it. Form BPT-IN is a one-time return, not an annual one.
How Much Is the Alabama Business Privilege Tax?
According to the Department of Revenue’s business privilege tax page, the rate runs from $0.25 to $1.75 for each $1,000 of net worth apportioned to Alabama, and the tax is capped at $15,000. An LLC that qualifies as a family limited liability entity can elect a $500 maximum, though a disregarded single-member LLC cannot make that election.
The minimum tax was $100, then $50 for taxable years beginning in 2023. From 2024 on, an LLC whose computed tax is $100 or less owes nothing and files nothing.
What Information Does the Alabama Return Ask For?
The Form PPT instructions list these items:
- Copies of the federal return pages: Form 1065 pages 1 to 5, or Form 1120-S pages 1 to 4.
- The Alabama net worth computation.
- Exclusions, deductions and the apportionment to Alabama.
- For a disregarded entity, the single member’s name and federal ID number or Social Security number.
- Schedule BPT-E, for an LLC making the family limited liability entity election.
Paper filers who include a payment attach Form BPT-V.
How to File the Alabama Business Privilege Tax Return: Step by Step
- Calculate the tax first. If the result is $100 or less, stop: there is nothing to file.
- Get your MAT login. Registering for My Alabama Taxes requires the Online Filing Info letter the Department of Revenue mails to the business.
- File the return. Submit it in My Alabama Taxes or through approved tax software.
- Pay the tax. Pay by card or ACH by the original due date, even if you extend the filing.
- Keep copies. Save the return and the payment confirmation with the LLC’s records.
Paper returns go to the Department of Revenue by mail: returns without a payment to PO Box 327431, Montgomery, AL 36132-7431, and returns with a payment and Form BPT-V to PO Box 327320, Montgomery, AL 36132-7320.
What Happens If an Alabama LLC Files Late?
A late return carries a penalty of 10% of the tax due or $50, whichever is greater, under Code of Alabama Section 40-2A-11. Late payment adds 1% of the unpaid tax per month, up to 25%. Interest also accrues at the federal underpayment rate and cannot be waived. The Department of Revenue mails a Business Privilege Tax Delinquent Notice to entities that have not filed.
Because the tax is owed for every year the LLC is registered, the way to end the obligation for an LLC that no longer operates is to dissolve it or, for a foreign LLC, withdraw it with the Secretary of State.
Alabama Tips for Non-Resident Owners
Run the numbers each year before you file: an LLC under the $100 line has no return to submit. Keep the federal return at hand, since the Alabama return attaches its pages. A single-member LLC owned by an individual should confirm its due date with the Department of Revenue, because the return follows the federal return date.
Keep Your Alabama LLC in Good Standing
Staying current with the Department of Revenue, and keeping a registered agent on file with the Secretary of State, is what keeps your Alabama LLC in good standing. Banks, payment processors and new partners ask for proof of that status, and the document that shows it is a Alabama certificate of good standing. For the full picture of what the state charges each year, see our breakdown of Alabama LLC costs, and if you have not formed the company yet, start with our guide on how to start an LLC in Alabama.
Most missed filings trace back to one problem: the state’s reminder went to an old address. A registered agent service that scans and forwards state mail closes that gap. If a deadline has already passed, our guide on what happens when you miss an annual report deadline walks through the fix, and our LLC annual report guide for every state covers the rules in other states where you are registered.
Form Your Alabama LLC With BusinessAnywhere
BusinessAnywhere forms your Alabama LLC for $0 plus the state filing fee, includes a free first year of registered agent service so state notices reach you, and gets the EIN for non-residents without a Social Security number for $97.
Frequently Asked Questions
Does an Alabama LLC file an annual report with the Secretary of State?
No. The Secretary of State’s annual report applies to corporations. Alabama LLCs file a Business Privilege Tax Return with the Department of Revenue instead.
When is the Alabama Business Privilege Tax Return due?
March 15 for a calendar-year LLC. LLCs taxed as C corporations file by April 15.
Does a small Alabama LLC have to file the Business Privilege Tax Return?
Not when its computed tax is $100 or less. For taxable years beginning after December 31, 2023, those LLCs have no filing requirement.
How is the Alabama business privilege tax calculated?
At $0.25 to $1.75 per $1,000 of net worth apportioned to Alabama, with a $15,000 maximum.
What is the penalty for filing the Alabama return late?
The greater of 10% of the tax due or $50, plus 1% per month on unpaid tax up to 25%, plus interest.
Does a new Alabama LLC file a first-year return?
Yes. Form BPT-IN is due within two and a half months of formation, unless the initial tax is $100 or less.
This guide summarizes rules published by the Alabama Department of Revenue and Alabama law as of October 2026. It is general information, not legal or tax advice. Tax rates and forms change, so confirm the current figures on the official site before you file.
