State Compliance Pack

Alabama

Region:

Alabama combines its annual report and franchise-style tax into a single Business Privilege Tax return filed with the Department of Revenue, due 3.5 months after your LLC’s tax year begins.

Compliance Snapshot

Annual / Periodic Report Annual (Due: 3.5 months after the start of the LLC's tax year (April 15 for calendar-year LLCs); filed as the Business Privilege Tax return)
Report Fee $50 minimum (VERIFY ANNUALLY)
Franchise / Privilege Tax Applies

Alabama's Business Privilege Tax functions as a combined annual report and franchise-style tax, calculated based on the LLC's net worth. Recent law changes have reduced or eliminated the minimum tax for the smallest businesses. Confirm current rules.

Registered Agent Required by state law
Sales / Use Tax Registration Register ↗
State Income Tax Pass-through by default for Alabama income tax; the Business Privilege Tax is a separate entity-level obligation regardless of income.
Official Business Portal Visit Portal ↗

Additional Notes

Filed with Revenue, not the Secretary of State: Alabama’s annual filing (Business Privilege Tax / Form PPT) goes to the Department of Revenue, not the Secretary of State. This is easy to overlook if you’re only watching for Secretary of State notices.

Compliance data last verified: June 12, 2026. Always confirm current fees and deadlines with the official filing agency before filing.