How to File an LLC Annual Report in Alabama? (The Guide)

Published by Atty. Danya Shakfeh | Author

Last updated: August 20, 2024

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As a limited liability company owner in Alabama, you must file your LLC annual report to keep your entity compliant with the Alabama Secretary of State.

To assist you, we teamed up with our licensed LLC experts who have nearly two decades of experience in the business sector.

We spent the past three weeks researching the official Alabama Secretary of State's website for the correct annual report filing information.

Here's everything you should know about filing your annual report in the state of Alabama.

Quick Summary

What Is an Alabama LLC Annual Report?

An Alabama LLC annual report is a document that records all the activities and operations of a business during the previous financial year [1].

This legal document also contains the details of the shareholders, managers, and members, including their names, mailing addresses, and phone numbers.

Our yearly report updates the state on any new changes that occur in the business, while the Business Privilege Tax is the minimum tax the state charges our for operating in Alabama.

Download Free Alabama LLC Annual Report

"All domestic and foreign business entities must file and submit an annual report and annual Business Privilege Tax return to stay compliant in Alabama."

- Delina Yasmeh, J.D./Tax LL.M, Distinguished Expert in Mergers & Acquisitions

How To File an Alabama Annual Report?

To file an Alabama annual report, you must submit Form PPT to the Business Services Division of the Alabama Secretary of State.

In Alabama, not only does the vast majority of the business landscape consist of small businesses, with 401,717 entities making up 99.4% of all Alabama businesses, but there are also unique tax obligations.

All newly registered businesses must file two types of returns: the one-time Initial Business Privilege Tax and the annual Business Privilege Tax Return, alongside an annual report.

It's important to note that any annual report submitted without a tax return will automatically be rejected.

All the business’s federal tax returns and annual reports are directed to the Department of Revenue, not the Alabama Secretary of State.

To start the filing process:

• Use the corporate filing authority's business search facility to look for your entity and verify the registration's due date.
• Visit the Alabama Department of Revenue to download the correct forms per your entity type.
• If you're filing for an LLC or any other pass-through entity, search for Form PPT- the Alabama Business Privilege Tax Return and annual report.

You will need the following requirements to file the Alabama annual report:

• Any new/updated details of your business, including name, business address, contact
• Contact details of the taxpayer (name, email, and phone number)
• Contact details of the filer
• Correct filing fee
• The date you registered for business in Alabama (foreign entities only)

You need the following details to file the Business Privilege Tax return report:

• The name, address, and EIN of the business
• The total amount of business privilege tax due

Note that the Alabama Business Privilege Tax rate is determined by how much money your company generates for the state of Alabama.

As a result, your rate will fluctuate based on the annual revenue generated by your company. The Alabama Business Privilege Tax rate for each $1000 of your entity's Alabama net value is between $0.25 and $1.75.

When filing our tax report, we attached a copy of the Alabama apportionment schedule Form 65, copies of the first 5 pages of our LLC's federal tax return, and documents proof supporting any deductions we were claiming.

Once complete, you can pay the Alabama annual report filing fee using an ACH direct debit payment through your My Alabama Taxes (MAT) account, use a credit card, or mail a money order or check to the Alabama Department of Revenue.

The check /money order payment option is valid only if your total is less than $750.

Send two copies of the filled-out form, accompanied by a self-addressed, stamped envelope to:

The Secretary of State, Business Services

P.O. Box 5616, Montgomery

Alabama 36103

After filing our annual report forms and corporate tax, we received a confirmation that it was filed. You can also receive a notification of any mistakes or omissions.

To avoid fines, you must act right away on any notices and fix any issues.

What to Include in the Annual Report?

The information included in the Alabama annual report consists of the following:

• Business Entity Name
• Type of Business Entity
• State of Incorporation
• Year of Incorporation
• Federal Employer Identification Number
• Business Address
• Mailing Address
• Email Address
• Registered Agent contact details (name and address)
• Names and contact information of directors, LLC managers and LLC members

How Early Can I File My Annual Report?

All registered limited liability companies can file an LLC annual report and a Business Privilege Tax Return with the Department of Revenue as early as one-half months after the beginning of the LLC's taxable year.

Also, all other business structures like a foreign Alabama nonprofit corporation, a C-Corp, or S-Corp have specific forms to submit to file their annual reports, failure to which may result in hefty fines and dissolution.

What Is the Filing Fee for the Report?

The annual report filing fee in Alabama is $10. This amount is payable to the Department of Revenue for processing the annual report.

However, the overall cost may be more depending on how much Business Privilege Tax you pay to the Department of Revenue.

For example, our Business Privilege tax for 2022 was $100, so we paid $110 to cover the tax and annual reports.

Related articles:

• How to Open an LLC in Alabama
• Top Registered Agent Services in Alabama
• Premium LLC Formation Services in Alabama

What Is the Due Date for Submitting the Report?

The annual report deadline offered by the Alabama Secretary of State varies depending on your business entity type.

Here's a breakdown of the filing deadlines for annual reports for various Alabama business entities:

• Limited liability entities: 15th March
• S corporations: 15th March
• Alabama Corporation: By 15th April
• Alabama nonprofits: Between January 1 and March 15

What Are the Penalties for Not Filling out the LLC Annual Report?

You will be charged a fine if you fail to submit your Alabama Business Privilege Tax Return and annual report by the due date. The late filing fees equal 10% of the Business Privilege Tax you owe, up to a maximum of $50.

You should also be aware that Alabama will impose an additional cost on you if you pay your Business Privilege Tax after the deadline.

For each month you miss the deadline, you will be charged a minimum tax of 1% of the Business Privilege Tax you owe, up to a maximum of 25%.

The Department of Revenue will issue you an acknowledgment of delinquency if your Business Privilege Tax Return and Alabama annual report form is not submitted altogether. You will also continue to pay extra fines when you don't file.

FAQs

References:

1. https://www.getincnow.com/Alabama-Corporation-Annual-Report-Online.php