Collected by
Alabama Department of Revenue
Due
With the matching federal return: March 15 for a calendar-year LLC taxed as a partnership
Main forms
PPT (pass-through entities), CPT (LLCs taxed as corporations)
Who owes it
LLCs organized in Alabama or doing business there. A single-member LLC owned by an individual files its own return (Form PPT); one owned by an entity that itself pays the tax is exempt.
How it is worked out
Net worth in Alabama, at a rate graded by the LLC’s income apportioned to Alabama, with a cap. Since 2024 there is no minimum tax: an LLC whose tax works out at or below a small set level owes nothing and does not file.
When it is due
With the matching federal return: March 15 for a calendar-year LLC taxed as a partnership. The tax is due by the original date even if the return is extended.
An initial return (BPT-IN) within two and a half months of forming or starting business in Alabama, if the calculated tax is above the no-filing level. It cannot be extended.
Extensions: Yearly returns follow the federal extension, but payment is still due on the original date.
How to file
Online through My Alabama Taxes, or by mail with Form BPT-V. Forms you may need:
- PPT (pass-through entities)
- CPT (LLCs taxed as corporations)
- BPT-IN (initial return)
- BPT-V (payment voucher)
If it is missed
Penalties and interest for late filing or payment.
- Alabama LLCs file no annual report with the Secretary of State; this return is the yearly state filing.
Other yearly Alabama filings
Alabama has no annual report for LLCs; the yearly filing is the Business Privilege Tax return. See the Alabama annual report page and the compliance tracker for every date.
Sources
Related
Frequently asked questions
Does my Alabama LLC have to pay the Alabama business privilege tax?
LLCs organized in Alabama or doing business there. A single-member LLC owned by an individual files its own return (Form PPT); one owned by an entity that itself pays the tax is exempt.
When is the Alabama business privilege tax due?
With the matching federal return: March 15 for a calendar-year LLC taxed as a partnership. The tax is due by the original date even if the return is extended. An initial return (BPT-IN) within two and a half months of forming or starting business in Alabama, if the calculated tax is above the no-filing level. It cannot be extended.
Do I have to file if no tax is owed?
None, if the calculated tax is at or below the no-filing level. Above it, the LLC files every year.
How is the Alabama business privilege tax calculated?
Net worth in Alabama, at a rate graded by the LLC’s income apportioned to Alabama, with a cap. Since 2024 there is no minimum tax: an LLC whose tax works out at or below a small set level owes nothing and does not file.
What happens if I do not file or pay?
Penalties and interest for late filing or payment.
Can I get an extension?
Yearly returns follow the federal extension, but payment is still due on the original date.
