Alabama LLC annual report requirements changed in 2024. As of 2026, LLCs don't file a separate annual report with the Secretary of State, but Form PPT (the Business Privilege Tax Return and Annual Report) may still be due. Here's what applies.
At a Glance: Alabama LLC Annual Filing in 2026
| Quick fact | Answer for 2026 |
|---|---|
| SOS annual report? | No, requirement removed October 1, 2024 |
| Recurring filing | Form PPT, Business Privilege Tax Return and Annual Report |
| Filing authority | Alabama Department of Revenue (ALDOR) |
| Calendar-year LLC deadline | March 16, 2026 (March 15 falls on Sunday) |
| $100 or less exemption | No filing required if calculated BPT is $100 or less |
| Online portal | My Alabama Taxes (MAT) |
| First-year LLCs | Form BPT-IN within 2.5 months of formation |
Does Alabama Require an Annual Report for LLCs?
Not as a standalone Secretary of State filing. House Bill 230 (Act No. 2024-213) removed the SOS annual report requirement effective October 1, 2024, so Alabama LLCs no longer submit one to the Secretary of State. The recurring obligation often confused with the annual report, the Business Privilege Tax, wasn't repealed.
The recurring filing most owners are searching for is Form PPT, officially titled the Alabama Business Privilege Tax Return and Annual Report for Pass Through Entities Only. It goes to the Alabama Department of Revenue (ALDOR), not the Secretary of State. Among the 50-state annual report rules, this state sits in its own category because the recurring filing is tax-driven, not entity-driven.
Under Code of Alabama 1975 § 40-14A-22, the state levies the Business Privilege Tax. A 2022 amendment (HB 391, Act 2022-252) added a $100 or less exemption that removes the BPT filing requirement for many small entities. Newly formed companies should walk through our Alabama LLC formation guide before the BPT clock starts.
The 2024 reform also fits a broader regional pattern: legislatures across the Southeast are tying entity compliance to tax filings rather than separate Secretary of State reports. This article reflects Aaron Kra's ongoing review of the post-2022 reforms and the 2026 Form PPT instructions.
Alabama Form PPT Deadline (and How to Calculate Yours)
Business Privilege Tax for limited liability entities is due on the 15th day of the 3rd month after the start of the taxable year. For a calendar-year LLC, that's March 15. The April 15 deadline several competitor blogs still cite is wrong for these entities.
The table below summarizes the 2026 deadlines by entity type.
| Entity type | 2026 deadline | Rule |
|---|---|---|
| Calendar-year LLC | March 16, 2026 | 15th day of 3rd month (March 15 is Sunday) |
| Fiscal-year LLC | 15th day of 3rd month after fiscal year start | Date varies |
| Single-member LLC (disregarded) | Owner's federal return deadline | Date depends on owner's tax classification |
| Newly formed LLC | Within 2.5 months of formation | One-time Form BPT-IN |
A few rules worth flagging on top of the table. 52/53 week filers and short-period filers calculate from their own taxable year start. There's no extension of time to file Form BPT-IN, and an Alabama income tax extension doesn't extend the time to pay BPT (only the time to file). The state also applies a weekend and holiday rollover, so when the calculated date falls on a Saturday, Sunday, or state holiday, the deadline shifts to the next business day.
How Do I Find My Alabama LLC's Filing Window?
The cleanest source for your specific deadline is the ALDOR Due Dates page, which lists Business Privilege Tax dates by entity classification. Cross-check your formation date against the Alabama business entity search before relying on a CPA's calendar reminder. New owners should confirm their initial BPT-IN window using our Alabama LLC formation timeline before the 2.5-month clock runs out.
Alabama LLC Filing Fee and Business Privilege Tax (2026)
LLCs in the state no longer pay a flat Secretary of State annual report fee. The recurring obligation is the Business Privilege Tax, calculated on Alabama net worth and the apportionment factor, not a fixed dollar amount.
Rates run from $0.25 to $1.75 per $1,000 of Alabama net worth. The bracket depends on federal taxable income, summarized in the table below.
| Federal taxable income apportioned to Alabama | BPT rate per $1,000 of net worth |
|---|---|
| Less than $1 | $0.25 |
| $1 to less than $200,000 | $1.00 |
| $200,000 to less than $500,000 | $1.25 |
| $500,000 to less than $2,500,000 | $1.50 |
| $2,500,000 or more | $1.75 |
Most companies face a $15,000 maximum tax. A $500 cap applies for an electing family limited liability entity, while certain financial institutions and insurance companies hit a $3,000,000 cap.
The headline 2026 rule is the $100 or less exemption. For taxable years beginning after December 31, 2023, taxpayers whose calculated BPT is $100 or less have no PPT filing requirement. The 2026 instructions confirm this directly on Part B, line 19: if privilege tax due is $100 or less, the taxpayer doesn't have a filing requirement and shouldn't submit the return.
One practical tip: run Schedule BPT-NW before assuming the exemption applies. Growing companies cross the threshold faster than expected, especially after a strong revenue year that pushes Alabama net worth higher. The full calculation, with rate-bracket examples, is covered in our Alabama LLC business taxes guide.
Foreign LLCs sit in the same BPT framework. The Alabama SOS Fee Schedule lists a separate $150 application fee and a $150 per-year late filing penalty on the entity-formation side. Our Alabama LLC cost breakdown covers the full state-side fee picture.
How to File Alabama Form PPT Step-by-Step
Most calendar-year LLCs work through Form PPT in five steps, and many can stop at Step 1 thanks to the $100 exemption. The walkthrough below assumes a pass-through company; corporation-classified LLCs use Form CPT instead, with the same workflow.
Step 1: Confirm whether your LLC owes Business Privilege Tax
Run a quick BPT estimate before filing anything. Calculate Alabama net worth using Schedule BPT-NW (or Schedule BPT-NWI for disregarded entities with individual single members), apply the rate bracket tied to federal taxable income apportioned to the state, and check the result. If the calculated tax is $100 or less, ALDOR's line 19 confirms no return is required. Stop here and document the calculation for your records.
Step 2: Gather your Alabama-specific information
Form PPT is a tax return, so the input list runs heavier than a standard annual report. Have ready your BPT account number issued by ALDOR (separate from your FEIN), federal EIN, NAICS code, taxable year details, Alabama net worth figures, the apportionment factor if multi-state, and the No Alabama Factor Presence Nexus indicator if formed outside the state.
Step 3: Choose your filing method
Two paths exist. Online filing through My Alabama Taxes (MAT) is the recommended route, accessible from ALDOR's Business Privilege Tax page under the “File and Pay Business Privilege Tax Online” link. The paper Form PPT is marked “PRINT ONLY” with two mailing addresses: P.O. Box 327431, Montgomery, AL 36132-7431 for no-payment returns, and P.O. Box 327320, Montgomery, AL 36132-7320 for returns with payment. Couriers and overnight services use 338 S. Jackson Street, Montgomery, AL 36104.
Step 4: Complete Form PPT or Form BPT-IN
First-year companies file Form BPT-IN within 2.5 months of formation, qualification, or starting business in the state, with no extension available. Recurring filers use Form PPT and complete the net worth computation, apportionment factor, gross privilege tax calculation, and any Alabama enterprise zone credit. Family LLE filers attach Schedule BPT-E for the $500 cap election.
Step 5: Submit and pay
ALDOR requires electronic payment when the tax due is $750 or more, so use My Alabama Taxes for those filings. Paper checks are only allowed under that threshold, and they must be accompanied by Form BPT-V, the Business Privilege Tax Payment Voucher. Save the MAT confirmation, certified mail receipt, or commercial courier tracking number in case ALDOR sends a delinquency notice in error.
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What Information You'll Need Before You File
Form PPT is a tax return, not a directory filing, which is why the input list runs deeper than a typical annual report. The list below skips the obvious entries (legal name, mailing address, contact email) and focuses on the Alabama-specific fields that trip up first-time PPT filers.
- BPT account number issued by ALDOR, separate from your FEIN
- Federal taxable income apportioned to Alabama, used to determine the rate bracket between $0.25 and $1.75 per $1,000
- Alabama net worth computed on Schedule BPT-NW, including partners' or members' capital accounts
- Apportionment factor if the company operates in more than one state
- No Alabama Factor Presence Nexus indicator, available only for entities formed outside Alabama
- Schedule BPT-E attachment for family limited liability entities claiming the $500 cap election
- Federal Form 7004 confirmation if the entity is piggybacking on a federal extension
- Taxpayer type indicator: S corporation, limited liability entity, disregarded entity, or LLE taxed as S corporation
Registered agent and member or manager updates aren't collected on Form PPT. Those are separate Alabama Secretary of State filings, often handled through a registered agent service for owners who don't want to chase mail forwarding themselves. Internal LLC governance changes also belong in your Alabama LLC operating agreement, not on the tax return.
Late Penalties and Compliance Risks for Alabama LLCs
LLCs that miss Form PPT face two layers of penalty plus interest, all calculated against the tax shown due rather than a flat fee.
The late filing penalty under Ala. Code Section 40-2A-11 is 10% of the tax shown due on the return, or $50, whichever is greater. The penalty applies even if the calculated BPT was modest; ALDOR uses the greater-of formula to discourage non-filing entirely.
A separate late payment penalty of 1% per month accrues until paid, capped at 25%. Interest under Ala. Code Section 40-1-44 stacks on top, using the IRC Section 6621 underpayment rate. Unresolved BPT exposure surfaces when the company needs a Certificate of Compliance for banking, financing, or contract work.
The harder problem is silent exposure. The state's Business Privilege Tax remains due every registered year until the entity is legally dissolved or withdrawn through the Alabama Secretary of State. Stopping Form PPT without filing Articles of Dissolution leaves the company accruing penalties and interest year over year, even if the business is no longer operating.
How to Reinstate a Dissolved Alabama LLC
If your company ends up administratively dissolved, the reinstatement happens through the Alabama Secretary of State, not ALDOR. You file a Certificate of Reinstatement for a Domestic LLC and attach a certified true copy of the original Certificate of Formation. The filing fee follows the SOS Fee Schedule for Title 10A documents, so verify the current amount on the SOS payment page before sending it.
Two quirks catch first-time filers. The form has to be typed (handwriting gets rejected) and the SOS doesn't accept it by email. The statutory framework sits in Alabama's LLC act under sections 10A-5A-7.07 through 7.10, but the paperwork is simpler than the citations suggest. A dedicated Boost Suite guide on Alabama LLC reinstatement is in development and will walk through the back-owed BPT workflow with ALDOR step by step.
Alabama Form PPT and LLC Annual Filing Questions
Most owners end up with the same handful of follow-up questions after the 2024 reform. The answers below cover six high-frequency cases that the body sections don't deeply address.
Do single-member LLCs in Alabama file Form PPT?
Yes when there's a BPT obligation, but the deadline depends on the owner's federal tax classification. A disregarded SMLLC owned by an individual ties to the owner's Form 1040 deadline. A disregarded SMLLC owned by another entity ties to that entity's federal return. The $100 or less exemption still applies, so many small SMLLCs file nothing.
What happens if my Alabama LLC owes $100 or less in Business Privilege Tax?
No filing is required. Form PPT Part B, line 19 confirms that taxpayers whose calculated privilege tax is $100 or less don't have a filing requirement and shouldn't submit the return. Document your calculation in case ALDOR sends a delinquency notice in error.
What is the difference between Form PPT and Form BPT-IN?
Form BPT-IN is the Initial Business Privilege Tax Return, due within 2.5 months of LLC formation, qualification, or starting business in Alabama. Form PPT is the recurring annual filing for pass-through entities. New companies file BPT-IN once, then move to PPT for every subsequent taxable year.
Does a foreign LLC file Alabama Form PPT?
Yes, foreign LLCs registered with the Alabama Secretary of State fall under the same BPT framework, and the $100 exemption applies equally. Separate SOS fees of $150 for application and $150 for late filing apply on the entity-formation side, unrelated to Form PPT.
Do Alabama LLCs need a local business privilege license?
Yes, in most cases, but it's a separate obligation. Counties and municipalities issue local business privilege licenses that are distinct from ALDOR's state-level Business Privilege Tax. Confirm renewal requirements directly with the county probate office or the municipal business license office where your company operates.
How do I update my registered agent in Alabama if it's not on Form PPT?
File the Alabama Secretary of State's Registered Agent or Registered Office Change form through the SOS Business Downloads page. The change is independent of any tax filing. Many owners outsource this through a registered agent service to avoid missed mail and missed deadlines.
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