Alabama does not have an annual report requirement in the traditional sense. Instead, Alabama LLCs file an Alabama Business Privilege Tax return annually with the Department of Revenue. This is Alabama's equivalent of an annual report — it keeps your LLC in good standing and is due by March 15 each year (or the due date of your business income tax return). The minimum tax is $100.
Why Alabama doesn't call it an annual report
Most states require LLCs to file an annual report with the Secretary of State — a brief document confirming the LLC's address, members, and registered agent. Alabama takes a different approach. Instead of a separate annual report, Alabama LLCs maintain their standing through the Alabama Business Privilege Tax (BPT), filed annually with the Alabama Department of Revenue.
The result is the same — you file something every year to keep your LLC active — but the filing goes to a different agency and involves a tax payment rather than a flat administrative fee.
| What it's called | Alabama Business Privilege Tax (Form PPT) |
| Filed with | Alabama Department of Revenue (not the Secretary of State) |
| Due date | March 15 (same as business tax return) |
| Minimum payment | $100 |
| Maximum payment | $15,000 |
| Where to file | MyAlabamaTaxes (MAT) at myalabamataxes.alabama.gov |
| What happens if you miss it | Penalties, interest, and eventual administrative dissolution |
How the Business Privilege Tax is calculated
The Alabama Business Privilege Tax is based on the net worth of your LLC attributed to Alabama. The rate is $1.75 per $1,000 of net worth, subject to a minimum of $100 and a maximum of $15,000.
For most small Alabama LLCs — especially those in their early years with limited assets — the tax comes to the $100 minimum. As your LLC's net worth grows, the tax scales accordingly.
New LLCs pay the minimum $100 for their first filing regardless of net worth. The calculation methodology is explained in detail on our Alabama Business Privilege Tax guide.
What happens if you miss the filing
Failing to file or pay the Alabama Business Privilege Tax has real consequences:
- Late penalty — 10% of the tax due or $50, whichever is greater, plus monthly interest
- Delinquent status — your LLC's standing with the state becomes delinquent, which can prevent you from getting a Certificate of Existence, opening bank accounts, or entering contracts that require proof of good standing
- Administrative dissolution — Alabama can dissolve your LLC for failure to file, which requires a formal reinstatement process and additional fees to undo
Administrative dissolution is not automatic on missing one year — but the state does dissolve LLCs with persistent non-compliance. If you've missed a year, file immediately at MyAlabamaTaxes (MAT) and pay any penalties. It's far easier to catch up proactively than to deal with a dissolved LLC.
Does a single-member LLC with no income still need to file?
Yes. Every Alabama LLC — regardless of whether it had any income or activity during the year — must file the Business Privilege Tax return and pay the $100 minimum. There is no exemption for inactive LLCs, zero-revenue LLCs, or LLCs in their first year of operation (after the initial filing year).
If you formed your LLC mid-year: Your first Business Privilege Tax return is due by March 15 of the year following formation, along with a minimum payment of $100. Some first-year LLCs pay an initial privilege tax at formation — check your formation documents or the Secretary of State's confirmation to see if an initial payment was already made.
How to file Alabama's LLC annual requirement
- Go to myalabamataxes.alabama.gov (MyAlabamaTaxes / MAT)
- Log in or create an account using your LLC's EIN
- Navigate to Business Privilege Tax → File Return (Form PPT for LLCs)
- Enter your LLC's net worth information
- Pay the calculated tax (minimum $100) by March 15
The filing itself takes about 15–20 minutes for a simple LLC with straightforward finances. If your LLC has complex assets, investments, or multi-state operations, work with an Alabama CPA to ensure the net worth calculation is accurate.