Alabama no longer requires a separate annual report filing with the Secretary of State. Since October 1, 2024, the Alabama annual report has effectively been folded into the Business Privilege Tax (BPT) return filed with the Department of Revenue, with a new Schedule AL-CAR attached to carry the company information the state used to collect on a standalone form.1Alabama Secretary of State. About the Business Entities Division For most corporations and LLCs, that BPT return is now the single recurring state filing.
What Replaced the Annual Report
House Bill 230 eliminated the standalone corporate annual report as of October 1, 2024. The Secretary of State’s office confirms that corporations authorized to transact business in Alabama are no longer required to file an annual report with that office.1Alabama Secretary of State. About the Business Entities Division
The information the state used to gather on the annual report now travels on Schedule AL-CAR, which is filed as an attachment to the BPT return. The schedule asks for the entity’s legal name, FEIN, principal office address, the registered agent’s name and Alabama address, and the type of business conducted. Corporations must also list their president and secretary by name, Social Security number, and address.2Alabama Department of Revenue. Schedule AL-CAR Accuracy on Schedule AL-CAR matters as much as the tax math, because that is how the state now keeps its business records current.
Charitable nonprofits are a separate story. They still have an annual filing obligation with the Alabama Attorney General’s Office, which requires a financial report or a copy of IRS Form 990 within 90 days of the organization’s fiscal year end.3Alabama Attorney General’s Office. Charitable Organizations
Who Has to File
Every corporation, LLC, limited partnership, business trust, and disregarded entity doing business in Alabama or registered with the Secretary of State must file a BPT return with the Department of Revenue if the tax owed exceeds $100.4Alabama Department of Revenue. Alabama Business Privilege Tax Form PPT Instructions
That $100 threshold is doing real work. For taxable years beginning after December 31, 2023, entities whose calculated tax would only be the $100 minimum are exempt from both the tax and the filing requirement.5Alabama Legislature. Alabama Code 40-14A-22 – Levy and Amount of Tax Many small businesses with modest net worth apportioned to Alabama now have no BPT filing to make.
Foreign corporations and LLCs registered in Alabama face the same BPT obligation as domestic entities. They also have to keep the details of their Secretary of State registration current. If something in the original registration application becomes inaccurate, an amendment must be filed within 60 days of discovering a false statement, or within 90 days of any factual change.6Alabama Legislature. Alabama Code 10A-1-7.06 – Amendments to Registration
Filing Deadlines
BPT returns are due on the same date as the entity’s corresponding federal income tax return. For calendar-year filers:7Alabama Department of Revenue. Due Dates
- S-corporations and LLCs file by March 15 (the 15th day of the 3rd month after the start of the taxable year).
- C-corporations file by April 15 (the 15th day of the 4th month). C-corporations with a June 30 fiscal year file by the 15th day of the 3rd month instead.
- Disregarded entities file whenever the owner’s corresponding federal return is due.
If you have already extended your federal income tax return for the same period, Alabama grants an automatic matching extension for the BPT return.8Alabama Administrative Code. Alabama Administrative Code 810-2-8-.06 The extension is for filing only. Any tax owed is still due by the original deadline, and interest accrues on unpaid amounts from that date.
What Goes on the Return
S-corporations, LLCs, and disregarded entities use Form PPT. C-corporations, financial institution groups, insurance companies, REITs, and business trusts use Form CPT.4Alabama Department of Revenue. Alabama Business Privilege Tax Form PPT Instructions Both include the tax calculation and, for existing entities, Schedule AL-CAR.
The tax itself is calculated on the entity’s net worth apportioned to Alabama. The rate per $1,000 of net worth depends on the taxpayer’s federal taxable income:5Alabama Legislature. Alabama Code 40-14A-22 – Levy and Amount of Tax
- Under $200,000: $1.00 per $1,000 of net worth.
- $200,000 to $499,999: $1.25 per $1,000.
- $500,000 to $2,499,999: $1.50 per $1,000.
- $2,500,000 or more: $1.75 per $1,000.
How to File
Alabama accepts BPT returns electronically through the My Alabama Taxes portal at myalabamataxes.alabama.gov.9Alabama Department of Revenue. Alabama Business Privilege Tax and Corporate Share Tax Financial institution groups are required to e-file. Other entities can file electronically or mail a paper return to the Department of Revenue.
Newly formed businesses have their own timeline. Domestic entities must file an initial BPT return on Form BPT-IN within two and a half months of organization. Foreign entities qualifying with the Secretary of State must file the initial return within two and a half months of their qualification date. The initial return does not include Schedule AL-CAR.10Alabama Department of Revenue. Alabama Business Privilege Tax Initial Privilege Tax Return Form BPT-IN Instructions
Penalties for Filing Late or Not at All
Alabama treats failure to file and failure to pay as separate offenses, and both penalties can hit the same return.
Miss the filing deadline and the penalty is 10 percent of any additional tax due, or $50, whichever is greater.11Alabama Legislature. Alabama Code Title 40 Revenue and Taxation 40-2A-11 – Civil Penalties Levied in Addition to Other Penalties Provided by Law File on time but pay short and a separate penalty of 1 percent per month accrues on the unpaid balance, capped at 25 percent.12Alabama Administrative Code. Alabama Administrative Code 810-14-1-.30 – Penalty for Failure to Timely Pay Tax
Interest runs on top of both, calculated using the federal underpayment rate set by the U.S. Treasury and charged from the original due date of the tax.13Alabama Legislature. Alabama Code 40-1-44 – Interest on Delinquent Taxes
Losing Your Right to Do Business
Prolonged noncompliance goes beyond money. It can cost the entity its legal existence in Alabama.
For foreign entities, the Secretary of State may begin revocation proceedings if the entity fails to pay its privilege tax within 180 days after it is due, goes 60 days or more without a registered agent or registered office, or fails to file required updates to its registration information within 60 days of a change.14Alabama Legislature. Alabama Code 10A-1-7.12 – Grounds for Revocation Domestic entities face a parallel administrative dissolution process for the same kinds of failures.
Owners usually find out about the problem at the worst moment: trying to file a lawsuit, close a sale, bring on investors, or produce a certificate of good standing. Existing debts stay, but the entity loses its ability to operate, enforce contracts, or use the courts until it is reinstated. Reinstatement generally requires clearing all outstanding tax, filing missing BPT returns, paying accumulated penalties and interest, and then applying to the Secretary of State with a certificate from the Department of Revenue confirming the tax account is current.
Every filing entity must also continuously maintain a registered agent and registered office in Alabama.15Alabama Legislature. Alabama Code 10A-1-5.31 – Designation and Maintenance of Registered Agent and Registered Office Letting the registered agent lapse is one of the fastest routes to dissolution or revocation, and it also means legal notices, including service of a lawsuit, may never reach you.
Correcting Errors
If you find a mistake in the tax calculation, file a corrected Form PPT or Form CPT, mark it as an amended return, and pay any additional tax owed.
For errors in the company information reported on Schedule AL-CAR, such as an incorrect principal office address or the wrong officer names, the correction flows through the next BPT return, since Schedule AL-CAR is now the primary vehicle for that data. Changes to the registered agent or registered office are handled separately by filing the appropriate change form with the Secretary of State.16Alabama Secretary of State. Change of Registered Agent or Registered Office by Entity
If your mailing address, location, or responsible party changes, notify the IRS on Form 8822-B. Changes to the responsible party must be reported within 60 days.17Internal Revenue Service. About Form 8822-B, Change of Address or Responsible Party – Business
Federal Beneficial Ownership Reporting
One filing many Alabama business owners ask about is federal, not state: Beneficial Ownership Information (BOI) under the Corporate Transparency Act. As of March 2025, FinCEN has exempted all entities formed in the United States from BOI reporting, and only entities formed under the law of a foreign country that have registered to do business in a U.S. state are still required to file. FinCEN has stated it will not enforce BOI penalties or fines against U.S. citizens or domestic reporting companies.18FinCEN. Beneficial Ownership Information Reporting The rules have been in flux due to ongoing litigation, so the position could shift again, but for now most Alabama-formed businesses have no BOI filing to make.