Alabama LLC Annual Report: None Required
Alabama LLCs do not file an annual report with the Secretary of State. The Secretary of State's LLC page lists no LLC report, and the fee schedule's annual report rows are for corporations only.
The Department of Revenue states that since January 1, 2024, only domestic and foreign for-profit corporations and professional corporations file annual reports with the Secretary of State ($10).
What Alabama LLCs file instead
| Item | Fee | Deadline |
|---|---|---|
| Secretary of State annual report | None for LLCs | |
| Business privilege tax return (Form PPT) | Tax based on net worth | Same date as your federal income tax return |
| Tax due of $100 or less | Exempt | No return required |
| Late return | 10% of tax due or $50, whichever is greater | After the due date |
How the privilege tax works
LLCs taxed as pass-throughs use Form PPT (an LLC taxed as a corporation uses Form CPT). For tax years beginning after December 31, 2023, there is a full exemption from the business privilege tax when the tax due is $100 or less, and those taxpayers need not file. The 2026 instructions say a return is required if the tax calculates to more than $100. The tax is based on net worth.
If you file late
The Department of Revenue charges a late filing penalty of 10% of the tax shown due or $50, whichever is greater. Late payment adds 1% a month, up to 25%.
Where these figures come from
- The Department of Revenue's notice on the 2024 business privilege tax filing changes covers the corporation-only annual report and the $100 exemption.
- The 2026 Form PPT instructions give the due date and penalties.
- The Secretary of State's LLC page and fee schedule show no LLC annual report.
What to do each year
- Estimate your privilege tax from your LLC's net worth.
- If tax due is over $100, file Form PPT (or CPT) by your federal return due date.
- If it is $100 or less, no return is required.
- Repeat yearly, and keep your registered agent current so state notices reach you.
Have us help
Forming a new Alabama LLC? Our formation is $199 plus the Alabama state filing fees, passed through at cost, and your first year of registered agent service is included (then $99 a year).
$199 + $236 Alabama state filing fee = $435 due today
FAQ
Does an Alabama LLC have to file an annual report?
No. The Secretary of State requires annual reports only from for-profit and professional corporations, not LLCs.
What do Alabama LLCs file every year?
A business privilege tax return with the Department of Revenue, unless the tax due is $100 or less.
What if I file the privilege tax late?
The penalty is 10% of the tax shown due or $50, whichever is greater, plus 1% a month on late payment up to 25%.