Alabama’s annual filing requirements are primarily driven by the Alabama Business Privilege Tax (ABPT), which is an annual tax levied for the privilege of doing business in Alabama. For many entities, the “annual report” component is integrated into this tax return filed with the Department of Revenue, rather than a standalone filing with the Secretary of State.
Why is it important to file? Maintaining good standing with the State of Alabama is crucial for your entity’s legal operation. Failure to comply with applicable filing requirements can lead to various penalties and negative consequences, including:
Penalties and Interest: Failure to file the ABPT return or pay the tax on time can result in significant penalties (e.g., 10% of the tax due for late payment, plus interest) and potentially a late penalty for the annual report component itself for some entities.
Suspension or Forfeiture: The Department of Revenue or Secretary of State can suspend, revoke, or forfeit your entity’s right to conduct business in Alabama.
Loss of Name Protection: Your entity’s name may become available for others to use.
Inability to Conduct Business: A suspended or forfeited status can hinder your ability to legally enter into contracts, maintain bank accounts, or defend yourself in Alabama courts.
Complex Reinstatement: Reinstatement is a multi-step process often requiring a tax clearance letter from the Department of Revenue and payment of all past due taxes, reports, penalties, and fees.
Specific Requirements by Entity Type in Alabama:
For Corporations (For-Profit) in Alabama:
Secretary of State Annual Report:No longer required. As of recent changes, for-profit corporations (domestic and foreign) are generally no longer required to file an annual report directly with the Alabama Secretary of State.
Alabama Business Privilege Tax (ABPT) (Alabama Department of Revenue – Form CPT):
Frequency: Annually.
Due Date: The ABPT return (Form CPT) is due by the 15th day of the 3rd month following the beginning of your taxable year for most C-corporations with a calendar year-end (e.g., March 15th for calendar year filers). For fiscal year filers, it’s generally tied to their federal tax due date. Please note: For corporations with a June 30 fiscal year, the due date is the 15th day of the 2nd month following the beginning of the taxable year (August 15th).
Tax/Fee: The ABPT is based on your corporation’s federal taxable income and net worth apportioned to Alabama. The minimum tax is $100.00.
Initial Filings: New corporations must file an initial ABPT return (Form BPT-IN) within 2.5 months of registering with the state.
Penalties: Penalties and interest apply for late filing and payment.
Alabama Corporate Income Tax (Alabama Department of Revenue – Form 20C):
Frequency: Annually.
Due Date: Generally, March 15th for calendar year filers, or the 15th day of the 3rd month following the end of your tax year. Alabama generally grants an automatic 6-month extension to file (but not to pay).
Note: For tax years beginning on or after January 1, 2022, corporate income tax returns are due one month following the corresponding federal income tax returns, including extensions.
For Limited Liability Companies (LLCs) in Alabama:
Secretary of State Annual Report:No separate annual report is required directly with the Alabama Secretary of State for LLCs (domestic or foreign).
Alabama Business Privilege Tax (ABPT) (Alabama Department of Revenue – Form PPT):
Frequency: Annually.
Due Date: Annually by April 15th for calendar year filers (or the 15th day of the 4th month following the beginning of your tax year for fiscal year filers).
Tax/Fee: The ABPT for LLCs (and other limited liability entities) is generally calculated based on federal taxable income and net worth apportioned to Alabama. The minimum tax is $50.00. For taxable years beginning on or after January 1, 2024, entities that would otherwise be subject only to the minimum tax may be exempt from the privilege tax.
Initial Filings: New LLCs must file an Initial Business Privilege Tax Return (Form BPT-IN) within 2.5 months of their formation date.
Penalties: Penalties and interest apply for late filing and payment.
Alabama Pass-Through Entity Income Tax (Alabama Department of Revenue – Form 65):
Frequency: Annually.
Due Date: Generally, March 15th for calendar year filers, or the 15th day of the 3rd month following the end of your tax year. Alabama generally grants an automatic 6-month extension to file (but not to pay).
For Partnerships (General Partnerships, Limited Partnerships, Limited Liability Partnerships, Limited Liability Limited Partnerships) in Alabama:
General Partnerships (GPs): Generally, GPs are not required to file an annual report with the Alabama Secretary of State or pay the Business Privilege Tax, unless they opt to do so or are considered a “limited liability entity” for ABPT purposes due to specific characteristics. They are subject to federal and state income tax reporting requirements for pass-through entities.
Secretary of State Annual Report:No separate annual report is required directly with the Alabama Secretary of State.
Alabama Business Privilege Tax (ABPT) (Alabama Department of Revenue – Form PPT):
Frequency: Annually.
Due Date: Annually by April 15th for calendar year filers (or the 15th day of the 4th month following the beginning of your tax year for fiscal year filers).
Tax/Fee: LPs and LLLPs are generally subject to the ABPT, calculated similarly to LLCs, with a minimum tax of $50.00. Exemptions may apply for the minimum tax for tax years beginning on or after January 1, 2024.
Initial Filings: New LPs/LLLPs must file an Initial Business Privilege Tax Return (Form BPT-IN) within 2.5 months of their formation date.
Penalties: Penalties and interest apply for late filing and payment.
Limited Liability Partnerships (LLPs):
Secretary of State Annual Notice/Renewal: While some sources indicate “no annual report,” LLPs in Alabama are generally required to file an Annual Notice (or renewal application) with the Secretary of State to maintain their registration.
Due Date: Annually by the anniversary date of their original registration.
Filing Fee: Varies, but often around $100.
Alabama Business Privilege Tax (ABPT) (Alabama Department of Revenue – Form PPT): LLPs are subject to the ABPT, same as LPs and LLCs, due by April 15th.
Alabama Pass-Through Entity Income Tax (Alabama Department of Revenue – Form 65): LLPs are generally required to file Form 65, due by March 15th (calendar year).
For Non-Profit Corporations in Alabama, please also note the following:
Non-profit organizations in Alabama have distinct annual compliance requirements with both the Alabama Secretary of State and the Alabama Attorney General:
Annual Report with Secretary of State:No annual report is required for a domestic or foreign Alabama nonprofit corporation with a 501(c) exemption.
If your non-profit solicits charitable contributions in or from Alabama (unless exempt), you must register and file an Annual Financial Report with the Alabama Attorney General’s Office.
Due Date: Annually within 90 days after the close of your organization’s fiscal year. Extensions of up to 180 days can be requested.
Filing Fee:$25.00 for initial registration and subsequent annual renewals.
Required Attachments: This report requires submitting a copy of your federal IRS Form 990 series return or a self-created financial report.
Penalties: Failure to file or renew can result in a penalty of up to $5,000 for unlawful charitable solicitation.
Alabama Business Privilege Tax (ABPT) (Alabama Department of Revenue – Form CPT/PPT):
While many nonprofits are exempt from income tax, they may still have an ABPT filing requirement if they are organized as a corporation or limited liability entity and meet the criteria for “doing business” in Alabama.
Tax/Fee: If applicable, the ABPT would be a minimum of $100.00 for corporations (Form CPT) or $50.00 for limited liability entities (Form PPT). However, for tax years beginning on or after January 1, 2024, entities that would otherwise be subject only to the minimum tax may be exempt from the privilege tax.
Due Date: Typically March 15th or April 15th, depending on entity type.
Federal IRS Form 990 Series: As a federally tax-exempt organization, your non-profit must file an annual information return with the IRS (Form 990, 990-EZ, 990-PF, or 990-N, depending on your gross receipts and assets). This is typically due by the 15th day of the 5th month after your fiscal year ends (e.g., May 15th for a December 31st fiscal year-end).
What information is generally required for these filings? The various Alabama filings typically require verification or updating of the following:
Your entity’s legal name and Alabama ID number.
The current principal office address.
The name and physical street address of your Alabama Registered Agent.
For Corporations and Nonprofits: Names and addresses of your principal officers and directors.
For LLCs/Partnerships: Information about members or partners.
Updated contact information for the entity.
Financial information relevant for ABPT calculation (federal taxable income, net worth).
For Non-Profits: Details on any changes to your board of directors or charitable solicitation activities, and your gross contributions/revenue and assets for the past fiscal year.
How can we assist you? The various Alabama reporting requirements, particularly the integration with the Business Privilege Tax, can be intricate. We are here to assist you with understanding and fulfilling your Alabama compliance obligations. Our services for these filings include:
Determining your specific filing requirements, due dates, and applicable fees/taxes.
Gathering the necessary information.
Preparing and accurately filing your Alabama Business Privilege Tax return (which includes the annual report component for most entities).
Preparing and filing any applicable non-profit charitable renewals.
Arranging payment of the applicable fees/taxes.
Confirming receipt with the Alabama Department of Revenue and, if applicable, the Attorney General’s Office.
What we need from you: To facilitate these filings, fill up the information sheet:
Please do not hesitate to contact us at your earliest convenience to discuss your Alabama compliance obligations. We can help ensure your entity remains in good standing and avoids any potential penalties.
