To keep an Alabama LLC active each year, you file one document: Form PPT, the Business Privilege Tax Return and Annual Report, with the Alabama Department of Revenue. That single filing handles both the annual report and the tax payment. The Alabama LLC annual renewal is due by the same date as your federal income tax return, which for most calendar-year LLCs means March 15. The minimum tax is $50.
One Form Covers Two Requirements
Alabama does not issue a standalone annual report the way many other states do. The annual reporting requirement is folded into the Business Privilege Tax return.1Alabama Department of Revenue. Alabama Business Privilege Tax The form’s full title is “Alabama Business Privilege Tax Return and Annual Report for Pass Through Entities Only.” Filing Form PPT once a year satisfies both the Department of Revenue (for the tax) and the Secretary of State (for the annual report).
Every LLC formed or registered in Alabama has to file, whether or not the business made money.2Alabama Department of Revenue. Business Privilege Tax If your LLC exists on paper in Alabama, this filing is owed.
When the Return Is Due
The BPT return is due no later than the due date of your corresponding federal income tax return.3Alabama Legislature. Alabama Code 40-14A-25 – Filing of Returns The Department of Revenue phrases it as two and a half months after the beginning of the taxable year.4Alabama Department of Revenue. When is the Alabama Business Privilege Tax Return Due? For a calendar-year LLC, that is March 15.
Single-member LLCs treated as disregarded entities for federal tax purposes follow their owner’s deadline instead. A disregarded entity must file no later than the time its owner is required to file.3Alabama Legislature. Alabama Code 40-14A-25 – Filing of Returns If the owner is an individual, that pushes the deadline to April 15. When the due date lands on a weekend or holiday, it moves to the next business day.
What You’ll Owe
The tax is based on your LLC’s net worth apportioned to Alabama, with the rate per $1,000 of net worth rising with federal taxable income apportioned to the state:5Alabama Legislature. Alabama Code 40-14A-22 – Levy and Amount of Tax
- Less than $1 of taxable income: $0.25 per $1,000 of net worth
- $1 to $199,999: $1.00 per $1,000
- $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
Two numbers matter for most owners. The minimum tax for an LLC is $50 for tax years beginning after December 31, 2022. The maximum is capped at $15,000 regardless of net worth.2Alabama Department of Revenue. Business Privilege Tax The vast majority of small LLCs owe at or near the $50 minimum.
How to File
The Department of Revenue’s My Alabama Taxes (MAT) portal is the main way to file electronically. You can submit Form PPT and pay the tax directly through the system.6Alabama Department of Revenue. Business Privilege Tax FAQ To register for MAT, you need the Online Filing Info letter that the Department of Revenue mails after you register with the Secretary of State. That letter arrives within four to six weeks and includes the account number, sign-on ID, and access code required to set up an account at myalabamataxes.alabama.gov.
Paper filing is also available. Form PPT can be downloaded from the Department of Revenue’s website and mailed in, though processing takes longer.1Alabama Department of Revenue. Alabama Business Privilege Tax Before you start, pull together your net worth figures, federal taxable income, and apportionment information if the LLC operates in more than one state.
Extensions Give You Time, Not Relief
Alabama grants an automatic extension to file the BPT return if you received an extension on the corresponding federal income tax return, and the state extension matches the length of the federal one.7Legal Information Institute. Alabama Administrative Code 810-2-8-.06 – Extension of Time for Filing of Business Privilege Tax Returns For LLCs with a six-month federal extension, the Alabama filing deadline moves out by six months.
Watch this part carefully. The extension covers only the paperwork. Alabama does not allow an extension of time to pay the Business Privilege Tax, so the full amount owed is still due on the original deadline.7Legal Information Institute. Alabama Administrative Code 810-2-8-.06 – Extension of Time for Filing of Business Privilege Tax Returns If you need more time to prepare the return, estimate what you owe and pay it by the original due date to avoid penalty and interest.
What Happens if You File or Pay Late
Miss the deadline with tax owed and the Department of Revenue adds a penalty of 1% of the unpaid tax for each month or partial month the payment is late, capped at 25% of the tax owed.8Legal Information Institute. Alabama Administrative Code 810-14-1-.30 – Penalty for Failure to Timely Pay Tax Interest also accrues on the unpaid balance. Alabama ties its interest rate to the federal underpayment rate set by the U.S. Treasury, which stood at 7% annually as of October 2025.9Alabama Department of Revenue. Revised Privilege License Interest Rate Factor Chart
For an LLC owing the $50 minimum, those dollar amounts stay small. The bigger risk is further down the road. Persistent failure to file the BPT return can lead the state to administratively dissolve your LLC, which removes its legal authority to conduct business in Alabama.
If Your LLC Has Already Been Dissolved
A dissolved Alabama LLC can be reinstated. Under state law, reinstatement requires the consent of the LLC’s members (or other persons authorized under the operating agreement) and the filing of a Certificate of Reinstatement with the Secretary of State. If the dissolution came through a judicial proceeding initiated by one or more members, each of those members has to individually consent.10Alabama Legislature. Alabama Code 10A-5A-7.07 – Reinstatement
The Certificate of Reinstatement carries a $100 processing fee payable to the Secretary of State.11Alabama Secretary of State. Domestic Limited Liability Company Certificate of Reinstatement You also have to resolve any outstanding Business Privilege Tax returns and pay the back taxes, penalties, and interest owed to the Department of Revenue before the LLC returns to active status. The full process can take weeks between gathering consents, filing with the Secretary of State, and settling up with the Department of Revenue. During that gap, the LLC does not exist as a legal entity.
Registered Agent Changes Are Separate
Form PPT does not update your registered agent. Every Alabama LLC must keep a registered agent on file with a physical address in the state to receive lawsuits and official notices. If your agent moves or resigns and the records are not updated, documents served on the old address are still considered legally delivered, which can produce a default judgment against your LLC in a case you never knew about.
To change the agent, file the Change of Registered Agent or Registered Office by Entity form with the Secretary of State. The form asks for your LLC’s Entity ID Number, the current agent on file, and the new agent’s name and Alabama address, and the new agent must sign the consent section before you submit it. You can mail the form (two copies plus a self-addressed stamped envelope) or email it to the Secretary of State’s miscellaneous filings address. The fee is $100.12Alabama Secretary of State. Change of Registered Agent or Registered Office by Entity
Proving Good Standing When Someone Asks
Banks, lenders, and other states often request proof that your LLC is active. Alabama’s version is called a Certificate of Existence. The Secretary of State issues one for $25 by mail or $28 through the online portal.13Alabama Secretary of State. Application for Certificate of Existence The online option lets you print the certificate immediately, which helps when a bank or outside agency needs it quickly. Your LLC has to be current on its Business Privilege Tax filings with no outstanding compliance issues to qualify, so keeping Form PPT up to date is what makes everything else possible.