LLC annual reports › Alabama
Alabama LLC Annual Report: Fee, Due Date and Penalties
Alabama doesn't require an annual report from LLCs. Here's what it does require.
Compiled October 2026; some details come from secondary sources, so confirm with the state.
- Report fee
- None
- How often
- Not required
- Required instead
- Business Privilege Tax (ALDOR Form PPT, or CPT if taxed as corporation): varies
- Late penalty
- Late filing: the greater of $50 or 10% of the tax. Late payment: 1% of the tax per month, up to 25%, plus interest (ADOR 2025 PPT instructions).
What Alabama requires instead
Recurring state costs
- Business Privilege Tax (ALDOR Form PPT, or CPT if taxed as corporation): varies. Based on Alabama net worth (graduated rate per $1,000). For tax years beginning after 12/31/2023, a calculated tax of $100 or less is fully exempt and no return is required (Act 2022-252); above $100 the full calculated amount is due. Annual return due with the federal income tax return due date; payment not extended by extension. Initial return Form BPT-IN due within 2.5 months of formation (no extension).
Deadlines
- Alabama Business Privilege Tax return (Form PPT; CPT if taxed as a corporation): Due by the entity's federal income tax return due date (the 15th day of the 3rd month after year-end for partnerships, March 15 for calendar-year filers). Since tax year 2024, no return is required if the calculated tax is $100 or less.
- Initial Business Privilege Tax return (Form BPT-IN): Within 2.5 months after formation.
If you miss a deadline
ADOR penalties and interest. The tax keeps accruing every year until the LLC is dissolved through the Secretary of State, and the LLC cannot get a Certificate of Compliance (needed to withdraw). Administrative dissolution is used mainly for registered-agent failures, not for BPT.
Getting reinstated: $100 state fee, plus any back reports, taxes and penalties.
Filing yourself, an Alabama LLC costs $200 in the first year and $0 a year after, plus taxes that vary.
Full Alabama cost breakdown →Sources
- https://www.sos.alabama.gov/sites/default/files/form-files/FeeSchedule.pdf
- https://www.sos.alabama.gov/business-entities/llcs
- https://www.sos.alabama.gov/sites/default/files/2022-01/domesticEntityNameReservation.pdf
- https://www.revenue.alabama.gov/business-tax/alabama-business-privilege-tax/
- https://www.revenue.alabama.gov/individual-corporate/alabama-business-privilege-tax-and-corporate-share-tax/
- https://www.revenue.alabama.gov/wp-content/uploads/2025/01/25fpptinstr.pdf
- https://www.sos.alabama.gov/sites/default/files/2022-09/DomesticLLCReinstatement.pdf
Questions
›Does an Alabama LLC have to file an annual report?
No. Alabama doesn't require an annual or biennial report from LLCs. What is required instead: Alabama Business Privilege Tax return (Form PPT; CPT if taxed as a corporation) (Due by the entity's federal income tax return due date (the 15th day of the 3rd month after year-end for partnerships, March 15 for calendar-year filers). Since tax year 2024, no return is required if the calculated tax is $100 or less); Initial Business Privilege Tax return (Form BPT-IN) (Within 2.5 months after formation).
›What happens if I miss an Alabama filing?
Late filing: the greater of $50 or 10% of the tax. Late payment: 1% of the tax per month, up to 25%, plus interest (ADOR 2025 PPT instructions). ADOR penalties and interest. The tax keeps accruing every year until the LLC is dissolved through the Secretary of State, and the LLC cannot get a Certificate of Compliance (needed to withdraw). Administrative dissolution is used mainly for registered-agent failures, not for BPT.
›How much does it cost to reinstate an Alabama LLC?
Alabama charges a $100 reinstatement fee, plus any back reports, taxes and penalties.
Estimates are for planning only and are not legal or tax advice. States change fees and deadlines; check the official source before you file.