Alabama LLC Annual Requirements (2026)
Does Alabama require an LLC annual report? No. There has never been a Secretary of State annual or periodic report for Alabama LLCs, and as of 2026 no Alabama entity of any kind files one. What can apply instead is a tax return, the Business Privilege Tax return, filed with the Alabama Department of Revenue, and under current law most small LLCs do not even owe that. Here is what the calendar actually looks like.
Why So Many Guides Get Alabama Wrong
Two changes rewired Alabama compliance in quick succession. First, Act 2022-252 phased the minimum Business Privilege Tax from $100 down to $50 and then to $0. Second, Act 2024-213 repealed the corporate annual report (the old Schedule AL-CAR under Ala. Code § 10A-2A-16.11) effective October 1, 2024. That repealed report was corporate-only anyway, so LLCs never filed it, but its existence is why older articles keep describing an "Alabama annual report" with a fee attached. For an LLC in 2026, no such filing exists.
The Business Privilege Tax Return (Form PPT)
The one recurring filing that can touch an Alabama LLC is Form PPT, the Business Privilege Tax Return and Annual Report for pass-through entities. Despite the words "Annual Report" in its name, it is a tax return, it goes to the Department of Revenue rather than the Secretary of State, and it does not collect registered agent or member information.
The current rules, straight from the Department of Revenue:
- $0 minimum. The old minimum privilege tax is gone under Act 2022-252.
- The $100 threshold. For tax years beginning after December 31, 2023, if your calculated tax is $100 or less, you owe nothing and are instructed not to file the return at all. This covers most small and single-member Alabama LLCs, which means their recurring state filing obligation is literally nothing.
- Due date. When Form PPT is required, it is due the same day as your federal income tax return, which for a calendar-year LLC means April 15.
- How the tax is figured. The rate is graduated from $0.25 to $1.75 per $1,000 of net worth apportioned to Alabama, based on federal taxable income, with the tax generally capped at $15,000. Net worth is measured from the prior taxable year's closing balance sheet.
- Where to file. Online through My Alabama Taxes or on paper. Details and forms live on the Department of Revenue's Business Privilege Tax page.
- New LLCs. The historical initial return, Form BPT-IN, was due within two and a half months of organization. With the $0 minimum now in effect, it only matters if your initial computed tax would exceed $100.
Your Actual Annual Checklist
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Get Started- Around tax time, compute the Business Privilege Tax for the year using the prior year's closing balance sheet and your Alabama-apportioned net worth.
- If the calculated tax is $100 or less, stop. You owe nothing, and the Department of Revenue instructs you not to submit Form PPT.
- If the calculated tax exceeds $100, file Form PPT and pay by your federal return's due date, through My Alabama Taxes or by paper.
- Repeat each year until the LLC is formally dissolved or withdrawn through the Secretary of State. The obligation does not lapse just because the company goes quiet, so an inactive LLC whose computed tax still tops $100 must still file.
Registered Agent Maintenance
The obligation that never goes away is the registered agent. Ala. Code § 10A-1-5.31 requires an Alabama LLC to maintain a registered agent and registered office in the state at all times, at a street address where process can be served in person. If you replace your agent, the Secretary of State filing is the Change of Registered Agent or Registered Office by Entity under Ala. Code § 10A-1-5.32, with a $100 state fee. Our registered agent service keeps a compliant Alabama address on file year-round for $99 per year and sends you anything the state or a process server delivers.
Foreign LLCs
An out-of-state LLC registered in Alabama follows the same rules: no Secretary of State annual report, and Form PPT only when the computed tax exceeds $100. Because a foreign LLC apportions net worth to Alabama, modest in-state activity often lands under the threshold. The obligation continues until the LLC formally withdraws its Alabama registration.
Federal Obligations Still Apply
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Get StartedAlabama's light state calendar does not touch your federal one. Single-member LLCs report on Schedule C by default, multi-member LLCs file Form 1065, members generally owe self-employment tax on their share, and quarterly estimated payments apply once you expect to owe $1,000 or more. Payroll filings come into play the day you hire.
The Bottom Line
For most Alabama LLCs, staying compliant in 2026 means keeping a registered agent on file and confirming each spring that the Business Privilege Tax stays at or under the $100 line. That is the entire list.