Alabama Annual Report: Due Date, Fee & Late Penalty

Alabama franchise, privilege and minimum taxes

• Business Privilege Tax (Form PPT, pass-through entities incl. LLCs and S-corporations) (Alabama Department of Revenue) — Based on Alabama net worth ($0.25 to $1.75 per $1,000; maximum $15,000). For taxable years beginning after Dec 31, 2023, tax of $100 or less is fully exempt and no return is required (Act 2022-252, Ala. Code 40-14A-22). Due: Same date as the corresponding federal income tax return (March 15 for calendar-year S-corporations and multi-member LLCs taxed as partnerships; a disregarded single-member LLC follows its owner's federal return date). Weekend/holiday: next business day. Initial return (BPT-IN) within 2.5 months after the entity organizes, qualifies or starts doing business; no extension for BPT-IN. No return required if the computed tax is $100 or less (tax years beginning after Dec 31, 2023)
• Business Privilege Tax (Form CPT, C-corporations and LLCs taxed as corporations) (Alabama Department of Revenue) — Based on Alabama net worth ($0.25 to $1.75 per $1,000; maximum $15,000). Tax of $100 or less is fully exempt and no return is required (tax years beginning after Dec 31, 2023). Due: Same date as the federal corporate income tax return (April 15 for calendar-year C-corporations). Initial return (BPT-IN) within 2.5 months after incorporation/qualification. No return required if the computed tax is $100 or less (tax years beginning after Dec 31, 2023)

Foreign (out-of-state) LLCs and corporations registered in Alabama

• LLC: No annual report for foreign LLCs; business privilege tax rules apply the same as domestic
• Corporation: No annual report for foreign corporations since Oct 1, 2024 (SOS: corporations authorized to transact business are no longer required to file)

Good to know

• Alabama has NO annual report for any entity type. The corporation annual report ($10) existed through 2024 and was repealed effective Oct 1, 2024; many sites still list it.
• Business privilege tax remains due every registered year until the entity is formally dissolved/withdrawn with the SOS, but small entities whose tax is $100 or less owe nothing and file no return (tax years beginning 2024+).
• Older ADOR pages still mention a $100 minimum / $50 minimum privilege tax; these were superseded by the $100-or-less full exemption.

Alabama annual report FAQ

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