How to File an LLC Annual Report in Alabama (2026)
Alabama does not require LLCs to file an annual report with the Secretary of State. Since 2024, the state also exempts most LLCs from the old minimum Business Privilege Tax. A typical Alabama LLC owes nothing and files nothing every year.
A smaller group of LLCs still file every year, when their net worth pushes the computed tax above the exemption. This page covers both the common case and that exception.
Quick Summary
- Check your LLC's net worth before assuming you owe nothing. Most Alabama LLCs are exempt, but a few still owe Business Privilege Tax.
- Keep your registered agent address current with the state. It's a habit worth keeping regardless of which filings apply to your LLC.
- Alabama gives no payment extension on Form PPT. Put the due date on your calendar early if your LLC still owes the tax.
Alabama LLC Annual Report Quick Reference
Here's what an Alabama LLC actually owes, and what changes if your LLC is one of the few that still owes Business Privilege Tax.
| Detail | Information |
|---|---|
| Annual obligation | None. The SOS Annual Report applies only to corporations, and most LLCs also owe no Business Privilege Tax. |
| Fee | $0 for most LLCs (fully exempt). Business Privilege Tax applies only when your LLC's computed tax exceeds $100. |
| Due date | Not applicable for exempt LLCs. If Business Privilege Tax is owed, the due date matches your LLC's federal income tax return due date (March 15 for a calendar-year, partnership-taxed LLC). |
| First report due | Not applicable. No annual report exists for LLCs to file, in year one or any later year. |
| Early filing window | Not applicable. |
| Late penalty | Not applicable when exempt. If tax is owed: 10% of the tax due or $50, whichever is greater, for filing late, plus 1% per month unpaid, up to 25%, for paying late. |
| Consequence of not filing | None. There is no annual report to miss, and no dissolution trigger tied to this filing. |
| Reinstatement cost | Not applicable. There is no lapse to fix here. |
| Filing authority | Alabama Department of Revenue, for Business Privilege Tax when it applies. |
| Online portal | My Alabama Taxes (MAT), for the LLCs that still owe Business Privilege Tax. |
There's no first-year report, no early filing window and no reinstatement process to track. Missing this filing carries no dissolution consequence either.
What Changed in Alabama's LLC Filing Rules in 2024
Before 2024, Alabama tied a $10 report to the Business Privilege Tax return. Plenty of guides still call that combined filing an "LLC annual report." Two changes split it apart.
First, the Secretary of State's Business Services Division now processes that $10 Annual Report on its own. It covers domestic and foreign for-profit corporations and professional corporations only. LLCs are not on that list, so no LLC files it or owes that fee.
Second, Alabama law exempts any entity whose computed Business Privilege Tax works out to $100 or less. That entity pays nothing and files nothing, starting with tax years after December 31, 2023 [1]. The threshold covers most small LLCs.
Form PPT is not an income tax return. It's a tax on your LLC's net worth, and it stops applying once your tax drops into the exempt range.
If you're forming a new business, read how to start an LLC in Alabama. Once you're up and running, this fee likely won't touch you at all. For background on how this filing works across states, see the LLC annual report guide.
How to File Form PPT If Your LLC Still Owes Business Privilege Tax
Skip this section if your LLC qualifies for the exemption above. If it doesn't, here's how to file and pay Form PPT.
1. Online through My Alabama Taxes
The Department of Revenue mails every new LLC a Sign On ID and Access Code letter. Existing companies get it too. Log into My Alabama Taxes with those credentials. Enter your LLC's net worth figures from Form PPT, then submit payment online.
2. By mail
Mail a return with no payment to Alabama Department of Revenue, Business Privilege Tax Section, PO Box 327431, Montgomery, AL 36132-7431. If you're sending payment with Form BPT-V, mail it instead to PO Box 327320, Montgomery, AL 36132-7320.
Due Date
If your LLC still owes Business Privilege Tax, Form PPT is due the same day as your LLC's federal income tax return. Alabama adopted that rule in 2017 [2]. For a calendar-year LLC taxed as a partnership, that means March 15.
No extension exists for the payment itself. A federal extension moves your paperwork deadline, but Alabama still expects the tax paid on time. Treat the calendar date as fixed, and pay ahead of it.
Penalties and What Happens If You Don't File
Filing Form PPT late costs 10% of the tax shown due, or $50, whichever is greater. Paying it late adds 1% of the tax due for every month it stays unpaid, capped at 25% of the amount owed [3].
Missing Form PPT doesn't dissolve your LLC. Some states shut an LLC down over a skipped report. Alabama's Business Privilege Tax rules carry no such rule for a late or missed filing.
What to Include and How to Update Your Information
Form PPT asks for your LLC's net worth figures, apportioned taxable income and any related-party debt adjustments. It doesn't ask for a member or manager roster the way some states' annual reports do.
A registered agent change doesn't happen on Form PPT. File that with the Secretary of State directly. If you'd rather not track deadlines yourself, a registered agent service in Alabama can flag state mail for you, including Business Privilege Tax notices.
FAQs
Where Do I Mail Alabama's Form PPT Return?
Where you mail Form PPT depends on whether you're sending payment. Without payment, mail your return to the Business Privilege Tax Section at PO Box 327431 in Montgomery. If you're paying by mail with Form BPT-V, send it to PO Box 327320 instead.
Which Alabama Business Types Still Owe Business Privilege Tax?
Several Alabama business types still owe Business Privilege Tax: S-corporations, limited liability entities and disregarded entities whose computed tax exceeds the exemption threshold. Each must file Alabama Form PPT with the Department of Revenue.
References:
- https://alison.legislature.state.al.us/code-of-alabama?section=40-14A-22
- https://www.revenue.alabama.gov/wp-content/uploads/2024/01/24fpptinstr.pdf
- https://alison.legislature.state.al.us/code-of-alabama?section=40-2A-11
